Audit & Assurance 2015

Module outline

Last updated: 26 March 2015

AAA module outline

Chartered Accountants Program

Audit & Assurance

MO

Audit & Assurance (AAA)

Overview
The Audit & Assurance (AAA) module is a technical module in the Chartered Accountants
Program. The module examines the process of auditing and the underlying concepts. It is
practical in nature, with candidates required to reference the Standards and apply their
knowledge to a variety of practical scenarios.

Units
The AAA module comprises the following units:
Unit

Name of unit

Approximate hours

Assurance purpose and framework

Auditing Standards and quality control

Pre-engagement activities

Understanding the entity and its environment

Analysing audit risks, financial statement assertions and initial audit

engagements

Online assessment 1
6

Analysing audit risks fraud

Materiality in planning and performing an audit

Developing an overall audit plan

Responding to assessed risks controls testing

Online assessment 2
10

Responding to assessed risks substantive testing

11

Responding to assessed risks evaluating audit evidence

12

Responding to assessed risks using the work of others, external

confirmations and written representations

13

Subsequent events and going concern

14

Reviewing the financial statement and audit results

Online assessment 3
15

Forming an opinion and issuing an auditors report

16

Review engagements

17

Other assurance engagements and agreed-upon procedures engagements

18

Internal audit and public sector auditing

19

Case study, and current and future trends

8
120

Final examination

Module outline

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Audit & Assurance

Chartered Accountants Program

MO

How is the AAA module taught?

The AAA module is 12 weeks in duration and offers flexible learning options with the delivery
of materials online through myLearning (accessible after you enrol in the module by logging
into myAccount and selecting myLearning).

Assessment
The assessment components are outlined below:
3 online assessments 20%.
Final examination 80% (3 hours plus 15 minutes reading time, open book)
To pass the module, candidates must pass the final examination (achieve 50% or more of the
available marks), and pass the module overall (achieve 50% or more of the available marks).

Time allocation
The expected workload for this module is a minimum of 10 hours per week over 12weeks, or
120 hours in total, excluding module orientation, on-line assessments, final exam and study
time for the final exam. Candidates are advised to plan their enrolment carefully around work
and other commitments, to ensure they are able to devote the time required to their studies.

Assumed knowledge
It is essential to have a basic understanding of accounting systems and the recording of
transactions in order to understand the audit of general purpose financial statements.
Ifcandidates do not understand how the accounting systems of entities work and how a set
of financial statements is produced, then it is very difficult to understand the fundamental
auditing concepts.
It is assumed that candidates would have a good understanding of the following concepts from
their undergraduate studies:
Financial accounting and preparation of general purpose financial statements at reporting
(refer to the Financial Accounting & Reporting assumed knowledge).
Standard business cycles and processes, and how they are recorded in the relevant
accounting system and reflected in the financial statements:
Sales system how a sale/revenue is recorded in an entitys accounting system, either
directly or via a subsidiary ledger; how it flows through the system; how debits and
credits are recorded when the sale is a cash sale and when the sale is on credit; how
credit notes and the provision for doubtful debts are accounted for; and how accounts
receivable balances should be written off if they are not collectable.
Payroll system how components of payroll are recorded by an entity (e.g. gross salary,
superannuation/pension contributions, workers compensation payments/insurance, tax
deductions and payments).
Purchases system how the purchase of a good or service is recorded in an entitys
accounting system, either directly or via a subsidiary ledger; how it flows through the
system; how debits and credits are recorded when a purchase is made using cash or on
credit; and how payment of the accounts payable is recorded.
Inventory management system how items purchased for manufacture or resale by
an entity go through the entitys inventory and COGS (cost of goods sold) accounts
rather than being recorded directly in expenses, and the concept of lower of cost or net
realisable value.

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Module outline

Chartered Accountants Program

Audit & Assurance

MO
Asset management system (property, plant and equipment/intangible assets) how
these items are recorded by an entity and how associated depreciation/amortisation/
impairment is recorded.
The role of an auditor, the objectives of an audit of general purpose financial statements,
and the auditors professional, ethical and legal responsibilities.
The need for the auditor to obtain an understanding of the entity and its environment,
assess audit risk and determine materiality.
The key components of the audit process, the broad categories of audit procedures (tests of
control and substantive procedures) for obtaining sufficient appropriate audit evidence to
support audit assertions, and the types of auditors opinions.
The difference between audit review and other assurance engagements.
It is assumed that candidates would have a basic understanding of:
International Financial Reporting Standards (IFRSs) or national equivalents.
International Standards on Auditing (ISAs) or national equivalents.
Code of Ethics for Professional Accountants of the International Ethics Standards Board for
Accountants (IESBA Code) or national equivalents

Learning resources and supports

Each technical module has a range of resources and supports available for candidates,
including:

Online learning material:

Introduction.
Core content.
Worked examples.
Activities.
Quick Reference Guides.
Readings.
Unit Quiz.
Mind maps.

Additional supports:
Optional virtual classrooms the focus will be on the more challenging topics and activities
within the module.

Recordings of the virtual classrooms will also be available these can be accessed by all
candidates, regardless of whether or not they attended these sessions.

Candidate Study Guide after enrolment candidates will receive a Study Guide for all
technical modules, containing the core content, the scenario and task for the activities and
the readings for each unit.
Discussion forums
Technical query forums where candidates can post specific questions to a technical
specialist.
Peer-to-peer forums where candidates can form study groups or discuss issues with
other candidates.
Exam preparation material to help candidates prepare for the final exam there will be
past exam papers available to download from the resources folder in the content area of the
module landing page.

Module outline

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Audit & Assurance

Chartered Accountants Program

MO

Prescribed reading material

The required reference for this module is:

For Australia:
Chartered Accountants Australia and New Zealand 2015, Auditing, Assurance & Ethics Handbook
2015, John Wiley & Sons Australia Ltd, Milton, Qld.

For New Zealand:

Chartered Accountants Australia and New Zealand 2015, Auditing, Assurance and Ethics
Handbook 2015, John Wiley & Sons Australia Ltd, Milton, Qld.

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Module outline