STUDY PLAN

(RPS)

PROGRAM : Undergraduate Program in

Accounting
COURSE : Audit II
CREDITS : 3 Credits

SEKOLAH TINGGI ILMU EKONOMI TRISAKTI

2018

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 STUDY PLAN
(RPS)

Name of University : STIE Trisakti (Trisakti School of Management)

Major : Accounting
Program : Undergraduate Program in Accounting
Course : Audit II
Credits : 3 Credits
Course code : RKA 308
Type : □ Theory □ Seminar □ Practice
Prerequisite (if any) : Audit I
Semester : 5
College year : III
Number of meeting : 14
Name of course’s : Team
instructors

A. DESCRIPTION
The subject of Auditing II provides the students with various theories/concepts relate with
auditing. This course discusses the concept of audit evidence, various testing in the audit,
how to take samples, materiality, audit completion stage, audit reports, fraud and going
concern, audit quality, corporate governance and the role of Auditor. Learning will be
implemented by applying student center approach to learning. Students are encouraged
and facilitated to actively seek and find the concept.

B. LEARNING OUTCOME (CPL)

Subject Learning Output
Attitude To show a responsible attitude for work in their specialization in
an independent manner (A-9)
General skill 1. Be able to demonstrate independent, quality and measurable
performance (GS-2)
2. Be able to combine technical competency and professional
skill to finish and/or complete the work (GS-10)
3. Be able to present information and promote ideas in an clear
manner, either orally or in writing, to the stakeholders (GS-11)
Knowledge 1. To master theoretical concepts comprehensively regarding
planning, procedure and reporting of audit (K-1)
2. To understand business ethics code of ethics of accounting
professions (K-5)
Special skill 1. Be able to make audit documentation from collection,
summary, proof, and to contribute in the team in the bid to

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 evaluate audit proof, in accordance with Audit Standards and
the prevailing laws and regulations (SS-1)
2. Be able to analyze business risks and audit risk in the bid to get
full understanding on the entities audited (SS-10)

C. COURSE LEARNING OUTCOME (CPMK)

Learning Outcome Learning Objective

1. The student 1.1. Define auditing evidence.
should be able 1.2. Discuss what constitutes accounting records.
1.3. Characterize risk assessment procedures regarding
to describe evidence.
audit evidence 1.4. Understand the seven evidence-gathering techniques:
inquiry, observation, inspection, re-performance,
recalculation. Confirmation, and analytical procedures.
1.5. Discuss evidence gathering procedures for physical
inventory counting, confirmation of accounts receivable,
and search for unrecorded liabilities.
1.6. Explain the confirmation process.
1.7. Illustrate the main uses of audit sampling.
1.8. Typify the key issues in auditing management
estimations.
1.9. Portray how an auditor approaches correction of
uncorrected misstatements.
1.10. Depict related parties and related party transactions.
1.11. Obtain evidence that management acknowledges its
responsibility for the fair presentation of the financial
statements in a management representation letter.
2. The student 2.1. Explain why the audit evidence search is a central
should be able concept of auditing.
2.2. Identify the stages of the audit process and show that
to describe the evidence has to be collected in different ways at each
search for stage.
evidence 2.3. Explain the relationship between audit evidence and
explained audit risk.
2.4. Show there are different grades of audit evidence and
that evidence may be upgraded or downgraded.
2.5. Explain the relationship between audit evidence and the
application of audit judgement.
2.6. Show to what extent the evidence-gathering process
might be affected by a decision by the auditor to rely on
the directors and the control environment they have
introduced.
2.7. Form conclusions on the basis of evidence available in
selected scenarios.
2.8. Explain the difference between an audit, a limited
assurance engagement, a compilation engagement and
an engagement involving agreed upon procedures, and
suggest how the evidence-gathering process may differ
between them.

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3. The student 3.1. Explain the significance of the layers of regulation and
should be able control.
3.2. Define internal control and explain the significance of the
to apply control environment and related components, and
systems work: accounting and quality assurance/control systems.
basic ideas 1 3.3. Explain the nature and role of systems
development/maintenance controls and describe the
main features of these controls.
4. The student 4.1. Explain the nature and role of application controls and
should be able describe the main features of these controls.
4.2. Distinguish between systems-
to apply development/maintenance controls and application
systems work: controls.
basic ideas 2 4.3. Show how the auditor breaks down systems into
components as an aid to understanding the systems.
4.4. Explain how the auditor records systems in use.
5. The student 5.1. Suggest audit and systems objectives for selected
should be able components of the financial statements.
5.2. Evaluate systems in use in selected areas and draw up
to describe audit conclusions.
testing and 5.3. Explain the role of tests of control, and in particular those
evaluation of used to test computer systems.
systems
6. The student 6.1. Describe the substantive procedures an auditor would
should be able perform to prove that recorded transactions and figures
are genuine, accurate and complete.
to describe 6.2. Explain the purpose of selecting a sample when
substantive performing substantive procedures.
testing, 6.3. Draft suitable conclusions after substantive procedures
computer have been performed.
6.4. Draft a management letter, containing
assisted audit recommendations on internal control and other matters
techniques and of interest to management and others charged with
audit governance, and to the auditor.
programmes
7. The student 7.1. Discuss the importance of audit sampling.
should be able 7.2. Distinguish between non-statistical and statistical
sampling.
to describe 7.3. Describe the key steps and data required for the auditors
sampling and to perform statistical sampling.
Materiality 7.4. Discuss the importance of the concept of materiality.
7.5. Explain the role of materiality in relation to the financial
statements.
7.6. Describe how the auditors set the materiality level and
use it in various stages of the audit.
8. The student 8.1. Reiterate the procedures for the audit completion stage
should be able 8.2. State the elements of a system of quality control of an
audit firm
to describe 8.3. Give the implications of the sarbanes - oxley act for
audit quality control and audit review
completion 8.4. Understand why letters from client legal counsel are
necessary and what they contain

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 8.5. Conduct a review for contingent liabilities and
commitments
8.6. Conduct a review after the balance sheet date for
subsequent events and understand what events cause
financial statements adjustments
8.7. Know the auditor's responsibilities when facts are
discovered after the issuance of the audit report
8.8. Explain the procedures involved in the review of
financial statements including disclosures and other
information presented with the audited financial
statements
8.9. Design and perform the wrap-up procedures
8.10. Determine procedures to evaluate going concern issues
8.11. Discuss the design and use of matters for the attention
of partners
9. The student 9.1. Explain the importance of planning the year-end
should be able examination on the basis of interim work and other
information about the organization.
to apply final 9.2. Describe the kind of work carried out on or near the
work: general balance sheet date.
principles, 9.3. Show how audit techniques discussed earlier can be
analytical applied during the final work on selected assets and
related profit and loss account headings.
review of 9.4. Describe specific matters, including risk assessments,
financial relating to audit of selected financial statement
statements, headings.
non-current 9.5. Explain why the auditor analyses financial statements
before and after performing detailed audit work.
assets and 9.6. Describe the techniques employed by the auditor in
trade analysing financial statements.
receivables
The student 9.7. Apply the general principles for determining the validity
should be able of the amount attributed to inventories, construction
contracts, trade payables and financial liabilities
to apply final 9.8. Describe the inherent risks affecting inventories,
work: specific construction contracts, trade payables and financial
problems liabilities, and explain the controls introduced by
related to management, and the detection procedures carried out
by the auditor to keep audit risk to acceptable low levels.
inventories, 9.9. Evaluate a company’s system for the determination of
construction physical existence, condition and ownership of
contracts, trade inventories and construction contracts.
payables and 9.10. Explain how identification by the auditor of judgements
by management in relation to inventories, construction
financial contracts, trade payables and financial liabilities helps to
liabilities direct audit effort to critical areas.
9.11. Draft audit programmes to test the amounts attributed to
inventories, construction contracts, trade payables and
financial liabilities.
10. The student 10.1. Describe the nature of the work the auditor performs
should be able immediately prior to preparation of the audit report.
10.2. Detail the specific procedures the auditor performs in
to apply final respect of post-balance sheet events.
review: post-

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 balance sheet 10.3. Explain the nature of provisions, contingent liabilities
period, and contingent assets, and detail audit procedures in
respect of them.
provisions, 10.4. Describe the final working paper review procedures
contingencies, performed by the auditor prior to forming the final audit
letter of opinion.
representation 10.5. Explain how the auditor evaluates the effect of identified
misstatements and of unrecorded misstatements on the
financial statements.
10.6. Explain the nature and role of the management letter of
representation, in the context of the evidence search.
11. The student 11.1. Grasp who has responsibility for the financial statements
should be able and why.
11.2. Understand the basic elements of the auditor's report:
to explain audit contents and form.
reports and 11.3. Explain the contents and importance of the unmodified
communications (unqualified) audit opinion.
11.4. List the considerations of an auditor in giving an
unmodified (unqualified) opinion.
11.5. Distinguish between the different types of opinions given
in audit reports on financial statements.
11.6. Describe the circumstances under which the auditor will
modify an opinion.
11.7. Understand how some uncertainties lead to qualification
of opinions in the audit report on financial statements.
11.8. Provide circumstances in which the unmodified opinion
requires an emphasis of a matter paragraph.
11.9. State the two circumstances that require an auditor's
report containing an opinion other than an unmodified
(unqualified) one.
11.10. Discuss the audit matters of governance interest arising
from the audit of financial statements that the auditor
must communicate to those charged with governance of
an entity.
11.11. Give details contained in the long-form audit report.
11.12. List the general content of a management letter.
11.13. Reasons why an auditor may attend a meeting of the
stockholders of a corporation.
11.14. Explain the nature and importance of the audit report.
11.15. Describe the various components of the audit report.
11.16. Explain the nature of the auditor’s responsibility for
‘other information’ contained in the annual report.
11.17. Discuss the nature of the assurance provided in the
audit report in respect of information other than financial
statements disclosed in the annual report.
11.18. Describe the auditors’ responsibilities in respect of the
directors’ report and the strategic report.
11.19. Discuss the information provided in audit report about
the auditor’s work.
11.20. Discuss when an ‘emphasis of matter’ or ‘other matter’
paragraph might be required in the audit report.
11.21. Discuss the various forms of modified opinions and
identify the circumstances under which each type would
be issued by auditors.

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 11.22. Outline the reason why auditors have started to include
a disclaimer to third parties paragraph in the audit report.
11.23. Outline auditors’ responsibilities for reporting on
corporate governance issues.
11.24. Outline the procedures the auditor will undertake to
review the corporate governance statement.
11.25. Describe the implications of electronic publication of the
audit report.
12. The student 12.1. Describe auditors’ and directors’ responsibilities for
should be able deterring and detecting fraud.
12.2. Outline the factors which may indicate a higher than
to explain fraud usual risk of fraud.
and going 12.3. Discuss suggestions made by the audit profession in
concern respect of auditors’ responsibilities to detect fraud.
12.4. Describe auditors’ reporting requirements when they
suspect fraud has occurred.
12.5. Aware of some recent financial scandals involving
auditors.
12.6. Outline the auditors’ responsibilities for considering
compliance with law and regulations.
12.7. Describe the importance of the going concern concept.
12.8. Describe the information sources directors and auditors
may use to determine if a business is a going concern.
12.9. Discuss the potential implications for auditors where
there is some doubt over whether a client is a going
concern.
13. The student 13.1. Describe the nature of the audit expectations gap and
should be able identify its component parts.
13.2. Suggest reasons why each component of the audit
to describe expectations gap came into existence.
audit 13.3. Consider solutions (actual or potential) to reduce the
expectations audit expectations gap.
gap and audit 13.4. Explain why the gap may never be closed.
13.5. Discuss the FRC’s framework for audit quality and their
quality oversight mechanisms for monitoring audit quality.
14. The student 14.1. Understand the concept of corporate governance.
should be able 14.2. Explain causes for corporate governance being in the
spotlight.
to describe 14.3. Distinguish between different corporate governance
corporate structures.
governance and 14.4. Give examples of corporate governance codes.
the role of the 14.5. Identify major elements of corporate governance.
14.6. Evaluate the role of the auditor in corporate governance.
Auditor

D. COURSE DESCRIPTION

TOPIC COURSE OUTLINE

1. Audit Evidence 1.1. Audit procedures for obtaining audit evidence
1.2. External confirmation
1.3. Sampling
1.4. Audit of estimates

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 1.5. Evaluation of misstatement identified during the audit
(ISA 450)
1.6. Related parties
1.7. Written representations (letter of representation)
1.8. Form and content of the working papers
1.9. Document retention
1.10. Permanent and current files
1.11. Preparation of working schedule
1.12. Adjusting entry
2. The Search For 2.1. The audit defined as a search for evidence to enable an
Evidence opinion to be formed
Explained 2.2. Forming conclusions on the basis of evidence: the
exercise of judgement
2.3. Reliability of audit evidence (grades of audit evidence)
2.4. Case Study 6.1: Ridgewalk plc
2.5. The business risk approach to gathering audit evidence
2.6. The stages of the audit process and the evidential
requirements at each stage
2.7. Limited assurance and compilation engagements and
agreed upon procedures
3. Systems Work: 3.1. Layers of regulation and control expanded
Basic Ideas 1 3.2. Case Study 7.1: High Quality Limited (small
independent supermarket)
3.3. Case Study 7.2: Entity in the Financial Services
Sector: Caiplie Financial Services
3.4. Accounting and quality assurance/ control systems
3.5. General controls
3.6. Case Study 7.3: Cash received system: Horton
Limited
4. Systems Work: 4.1. Application controls
Basic Ideas 2 4.2. Data capture/ input controls
4.3. Processing controls
4.4. Output controls
4.5. Database systems
4.6. E-commerce
4.7. Audit approaches to systems and controls
5. Testing and 5.1. Sales and Receivables system
Evaluation of 5.2. Case Study 9.1: Broomfield plc: sales and trade
Systems receivables system
5.3. Payroll system
5.4. Case Study 9.2: Wages payroll: Troston plc
5.5. Purchases and trade payables system
5.6. Case Study 9.3: Broomfield plc: part of purchases
and trande payables system
5.7. General and application controls in a sales system
5.8. Case Study 9.4: Burbage Limited
5.9. Test of controls
5.10.Evalation of systems and audit conclusions
6. Substantive 6.1. Substantive testing of transactions, account
Testing, balances and disclosures

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 Computer 6.2. Case study 10.1: Powerbase plc: the substantive
Assisted Audit audit programme for purchases
Techniques and 6.3. The use of audit software
Audit 6.4. Directional testing
Programmes 6.5. Substantive audit programmes for wages
6.6. Substantive audit programmes for cash and bank
balances
6.7. Communication of audit matters to those charged
with governance (management letter)
6.8. Audit management with the computer
6.9. Appendix 10.1: Substantive audit programme for
production wages: Troston plc
6.10.Appendix 10.2: Substantive audit programme for
cash/ bank: County Hotel Limited
7. Sampling and 7.1. What is sampling?
Materiality 7.2. Designing and selecting the sample for testing
7.3. Case study 11.1: An example of judgmental
sampling: Broomfield plc
7.4. Sample selection methodology
7.5. Evaluation of test results
7.6. Monetary unit sampling (MUS)
7.7. Comparative advantages of statistical and non-
statistical sampling
7.8. Alternative statistical sampling methods
7.9. Materiality
8. Completing the 8.1. Quality control (ISQC #1, ISA 220, SOX)
Audit 8.2. Evaluate governance evidence
8.3. Review for discovery of subsequent events
8.4. Review financial Statements and other report
material
8.5. Wrap-up procedures
8.6. Going concern issues
8.7. Matters for attention of partners (MAPs)
8.8. Reports to the board of directors
9. Final Work: 9.1. Pre-final work
General 9.2. Balance sheet date work
Principles, 9.3. Bridging work between conclusion of intern work
Analytical and the balance sheet date
Review of 9.4. Analytical procedures
Financial 9.5. Case study 12.1: Kothari Limited: analytical review
Statements, 9.6. Case study 12.2: Art Aid Limited: analytical review
Non-Current 9.7. Detailed final audit work: general matters
Assets and 9.8. Tangible non-current assets and depreciation
Trade 9.9. Case study 12.3: Pykestone plc: non-current
Receivables assets Trade receivables and sales
9.10.Case study 12.4: Sterndale plc: ageing statement
9.11.Case study 12.5: Sterndale plc: analytical review of
sales and trade receivables
9.12.Financial assets

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 Final Work: 9.13.Inventories
Specific 9.14.Analytical procedures
Problems 9.15.Case study 13.1: Billbrook Limited: analysis of
Related to inventory, Part 1
Inventories, 9.16.Case study 13.1: Billbrook Limited: analysis of
Construction inventory, Part 2
Contracts, Trade 9.17.Case study 13.2: Greenburn Limited: inventory-
Payables and taking instructions
Financial 9.18.Valuation of construction contracts
Liabilities 9.19.Case study 13.3: Graves Limited: construction
contracts
9.20.Trade payables and purchases
9.21.Analytical procedures
9.22.Financial liabilities
10. Final Review: 10.1.Post-balance sheet events
Post-Balance 10.2.Provisions, contingent liabilities and contingent
Sheet Period, assets
Provisions, 10.3.Going concern
Contingencies, 10.4.Audit work to detect post-balance sheet events and
Letter of contingencies
Representation 10.5.Evaluation of misstatements identified during the
audit
10.6.Management letter of representation
10.7.Audit documentation
10.8.Role to the final review
11. Audit Reports 11.1. Basic elements of the auditor's report
and 11.2. Types of report expressing audit opinions
Communications 11.3. Emphasis of a matter paragraph
11.4. Circumstances that may result in other than an
unmodified opinion
11.5. Uncertainties leading to qualification of opinions
11.6. Communications with those charged with
governance
11.7. Long-form audit report
11.8. Management letter
11.9. The unmodified opinion
11.10.The modified audit opinion
11.11.Disclaimer of responsibility
11.12.Reporting on corporate governance issues
11.13.Electronic publicatiion of auditor's reports
12. Fraud and 12.1. Introduction to fraud
Going Concern 12.2. Responsibility for fraud detection
12.3. Recent debates relating to fraud
12.4. Case law relating to fraud
12.5. Auditing scandals
12.6. Consideration of laws and regulations
12.7. Introduction to going concern
12.8. Directors' and auditors' responsibilities for going
concern
12.9. Reporting on going concern

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 12.10.Appendix 17.1
13. The Audit 13.1. The audit expectations gap
Expectations 13.2. The causes of the audit expectations gap, possible
Gap and Audit developments and solutions
Quality 13.3. Audit quality
14. Corporate 14.1. The nature of corporate governance
Governance and 14.2. Corporate governance structures
the Role of the 14.3. Corporate governance committees and reports
Auditor 14.4. Best practice from a global perspective
14.5. Corporate governance and the role of the auditor
14.6. The audit profession and corporate governance

E. LEARNING METHOD
1. Discussion
2. Small Group Discussion
3. Self Directed Learning
4. Cooperative Learning

F. ASSIGNMENT
There are 2 (two) main tasks that must be done by students during lectures (1
semester):
1. Assignment from questions on the book (individual task)
2. Presentation for each small group and continue with discussion

G. GRADING PLAN
1. Grading Method
a. Written test (mid test and final test).
b. Assignment, study case, and paper assessment
2. Class participation and activity assessment
3. Component
a. Mid Test (35%)
b. Final Test (40%)
c. Assignment and Presentation (10%)
d. Quiz (15%)

H. RULES
1. Students are required to come on time
2. Students must bring required textbook.
3. Students must dress neatly and appropriately in accordance with the rules
4. Hand phone is prohibited to be used in class
5. The maximum number of absence in class is three times

I. REQUIRED TEXTS AND PUBLICATIONS

a. Rick Hayes, Philip Wallage and Hans Gortemaker, Principles of Auditing - An
Introduction to International Standards on Auditing, 3rd edition, Pearson, 2014.

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 b. Ian Gray, Stuart Manson and Louise Crawford, The Audi Process - Principles,
Practical & Cases, 6th edition, Cengage Learning, 2015.

J. SCHEDULE OF ACTIVITIES
(Next page)

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 SCHEDULE OF ACTIVITIES

Learning Outcome (CPMK):

1. Audit Evidence
2. The Search For Evidence Explained
3. Systems Work: Basic Ideas 1
4. Systems Work: Basic Ideas 2
5. Testing and Evaluation of Systems
6. Substantive Testing, Computer Assisted Audit Techniques and Audit Programmes
7. Sampling and Materiality
8. Completing the Audit
9. Final Work: General Principles, Analytical Review of Financial Statements, Non-Current Assets and Trade Receivables
Final Work: Specific Problems Related to Inventories, Construction Contracts, Trade Payables and Financial Liabilities
10. Final Review: Post-Balance Sheet Period, Provisions, Contingencies, Letter of Representation
11. Audit Reports and Communications
12. Fraud and Going Concern
13. The Audit Expectations Gap and Audit Quality
14. Corporate Governance and the Role of the Auditor
Week Learning Indicator Topic Learning Time Text and Assessment/
Objective Method needed Required Assignment
(Sub-CPMK) Supplies
(1) (2) (3) (4) (5) (6) (7) (8)
1 The student should 1.1. Define auditing evidence. Audit Evidence Discussion 2,5 A: Ch. 10 A : 10-20
be able to describe 1.2. Discuss what constitutes accounting records. Small Group hours (Page 396)
audit evidence 1.3. Characterize risk assessment procedures regarding evidence. Discussion
1.4. Understand the seven evidence-gathering techniques: inquiry, observation,
Self Directed
inspection, re-performance, recalculation. Confirmation, and analytical
procedures. Learning
1.5. Discuss evidence gathering procedures for physical inventory counting, Cooperative
confirmation of accounts receivable, and search for unrecorded liabilities. Learning
1.6. Explain the confirmation process.
1.7. Illustrate the main uses of audit sampling.
1.8. Typify the key issues in auditing management estimations.
1.9. Portray how an auditor approaches correction of uncorrected
misstatements.
1.10. Depict related parties and related party transactions.

13
 1.11. Obtain evidence that management acknowledges its responsibility for the
fair presentation of the financial statements in a management
representation letter.
2 The student should 2.1. Explain why the audit evidence search is a central concept of auditing. The Search For Discussion 2,5 B: Ch. 6 B: 6-1 (Page
be able to describe 2.2. Identify the stages of the audit process and show that evidence has to be Evidence Small Group hours 255)
the search for collected in different ways at each stage. Explained Discussion B: 6-2 (Page
2.3. Explain the relationship between audit evidence and audit risk.
evidence explained Self Directed 255)
2.4. Show there are different grades of audit evidence and that evidence may be
upgraded or downgraded. Learning
2.5. Explain the relationship between audit evidence and the application of audit Cooperative
judgement. Learning
2.6. Show to what extent the evidence-gathering process might be affected by a
decision by the auditor to rely on the directors and the control environment
they have introduced.
2.7. Form conclusions on the basis of evidence available in selected scenarios.
2.8. Explain the difference between an audit, a limited assurance engagement, a
compilation engagement and an engagement involving agreed upon
procedures, and suggest how the evidence-gathering process may differ
between them.
3 The student should 3.1. Explain the significance of the layers of regulation and control. Systems Work: Discussion 2,5 B: Ch. 7 B : 7-2 (Page
be able to apply 3.2. Define internal control and explain the significance of the control environment Basic Ideas 1 Small Group hours 301)
systems work: and related components, and accounting and quality assurance/control Discussion
systems.
basic ideas 1 Self Directed
3.3. Explain the nature and role of systems development/maintenance controls
and describe the main features of these controls. Learning
Cooperative
Learning

4 The student should 4.1. Explain the nature and role of application controls and describe the main Systems Work: Discussion 2,5 B: Ch. 8 B : 8-1 (Page
be able to apply features of these controls. Basic Ideas 2 Small Group hours 344)
systems work: 4.2. Distinguish between systems-development/maintenance controls and Discussion
application controls.
basic ideas 2 Self Directed
4.3. Show how the auditor breaks down systems into components as an aid to
understanding the systems. Learning
4.4. Explain how the auditor records systems in use. Cooperative
Learning

5 The student should 5.1. Suggest audit and systems objectives for selected components of the Testing and Discussion 2,5 B: Ch. 9 B : 9-3 (Page
be able to describe financial statements. Evaluation of Small Group hours 372)
testing and 5.2. Evaluate systems in use in selected areas and draw up audit conclusions. Systems Discussion
5.3. Explain the role of tests of control, and in particular those used to test
evaluation of Self Directed
computer systems.
systems Learning
Cooperative
Learning
6 The student should 6.1. Describe the substantive procedures an auditor would perform to prove that Substantive Discussion 2,5 B: Ch. 10 B : 10-1 (Page
be able to describe recorded transactions and figures are genuine, accurate and complete. Testing, hours 403)

14
 substantive testing, 6.2. Explain the purpose of selecting a sample when performing substantive Computer Small Group
computer assisted procedures. Assisted Audit Discussion
audit techniques 6.3. Draft suitable conclusions after substantive procedures have been Techniques and Self Directed
performed.
and audit Audit Learning
6.4. Draft a management letter, containing recommendations on internal control
programmes and other matters of interest to management and others charged with Programmes Cooperative
governance, and to the auditor. Learning

7 The student should 7.1. Discuss the importance of audit sampling. Sampling and Discussion 2,5 B: Ch. 11 B : 11-1 (Page
be able to describe 7.2. Distinguish between non-statistical and statistical sampling. Materiality Small Group hours 441)
sampling and 7.3. Describe the key steps and data required for the auditors to perform Discussion
statistical sampling.
Materiality Self Directed
7.4. Discuss the importance of the concept of materiality.
7.5. Explain the role of materiality in relation to the financial statements. Learning
7.6. Describe how the auditors set the materiality level and use it in various Cooperative
stages of the audit. Learning
8 Mid Test
9 The student should 8.1. Reiterate the procedures for the audit completion stage Completing the Discussion 2,5 A: Ch. 11 A : 11-18
be able to describe 8.2. State the elements of a system of quality control of an audit firm Audit Small Group hours (Page 450)
audit completion 8.3. Give the implications of the sarbanes - oxley act for quality control and audit Discussion
review
Self Directed
8.4. Understand why letters from client legal counsel are necessary and what
they contain Learning
8.5. Conduct a review for contingent liabilities and commitments Cooperative
8.6. Conduct a review after the balance sheet date for subsequent events and Learning
understand what events cause financial statements adjustments
8.7. Know the auditor's responsibilities when facts are discovered after the
issuance of the audit report
8.8. Explain the procedures involved in the review of financial statements
including disclosures and other information presented with the audited
financial statements
8.9. Design and perform the wrap-up procedures
8.10. Determine procedures to evaluate going concern issues
8.11. Discuss the design and use of matters for the attention of partners
10 The student should 9.1. Explain the importance of planning the year-end examination on the basis of Final Work: Discussion 2,5 B: Ch. 12 B : 12-1 (Page
be able to apply interim work and other information about the organization. General Small Group hours 508)
final work: general 9.2. Describe the kind of work carried out on or near the balance sheet date. Principles, Discussion
9.3. Show how audit techniques discussed earlier can be applied during the final
principles, Analytical Self Directed
work on selected assets and related profit and loss account headings.
analytical review of 9.4. Describe specific matters, including risk assessments, relating to audit of Review of Learning
financial selected financial statement headings. Financial Cooperative
statements, non- 9.5. Explain why the auditor analyses financial statements before and after Statements, Learning
current assets and performing detailed audit work. Non-Current
trade receivables 9.6. Describe the techniques employed by the auditor in analysing financial Assets and
statements. Trade
Receivables

15
 The student should 9.7. Apply the general principles for determining the validity of the amount Final Work: B: Ch. 13 B : 13-1 (Page
be able to apply attributed to inventories, construction contracts, trade payables and financial Specific 554)
final work: specific liabilities Problems
9.8. Describe the inherent risks affecting inventories, construction contracts, trade
problems related to Related to
payables and financial liabilities, and explain the controls introduced by
inventories, management, and the detection procedures carried out by the auditor to Inventories,
construction keep audit risk to acceptable low levels. Construction
contracts, trade 9.9. Evaluate a company’s system for the determination of physical existence, Contracts,
payables and condition and ownership of inventories and construction contracts. Trade Payables
financial liabilities 9.10. Explain how identification by the auditor of judgements by management in and Financial
relation to inventories, construction contracts, trade payables and financial Liabilities
liabilities helps to direct audit effort to critical areas.
9.11. Draft audit programmes to test the amounts attributed to inventories,
construction contracts, trade payables and financial liabilities.
11 The student should 10.1. Describe the nature of the work the auditor performs immediately prior to Final Review: Discussion 2,5 B: Ch. 14 B : 14-1 (Page
be able to apply preparation of the audit report. Post-Balance Small Group hours 590)
final review: post- 10.2. Detail the specific procedures the auditor performs in respect of post-balance Sheet Period, Discussion
sheet events.
balance sheet Provisions, Self Directed
10.3. Explain the nature of provisions, contingent liabilities and contingent assets,
period, provisions, and detail audit procedures in respect of them. Contingencies, Learning
contingencies, 10.4. Describe the final working paper review procedures performed by the auditor Letter of Cooperative
letter of prior to forming the final audit opinion. Representation Learning
representation 10.5. Explain how the auditor evaluates the effect of identified misstatements and
of unrecorded misstatements on the financial statements.
10.6. Explain the nature and role of the management letter of representation, in the
context of the evidence search.
12 The student should 11.1. Grasp who has responsibility for the financial statements and why. Audit Reports Discussion 2,5 A: Ch. 12 A : 12-23
be able to explain 11.2. Understand the basic elements of the auditor's report: contents and form. and Small Group hours (Page 499)
audit reports and 11.3. Explain the contents and importance of the unmodified (unqualified) audit Communication Discussion A : 12-31
opinion.
communications s Self Directed (Page 503)
11.4. List the considerations of an auditor in giving an unmodified (unqualified)
opinion. Learning
11.5. Distinguish between the different types of opinions given in audit reports on Cooperative B: Ch. 16 B : 16-1 (Page
financial statements. Learning 708)
11.6. Describe the circumstances under which the auditor will modify an opinion.
11.7. Understand how some uncertainties lead to qualification of opinions in the
audit report on financial statements.
11.8. Provide circumstances in which the unmodified opinion requires an emphasis
of a matter paragraph.
11.9. State the two circumstances that require an auditor's report containing an
opinion other than an unmodified (unqualified) one.
11.10. Discuss the audit matters of governance interest arising from the audit of
financial statements that the auditor must communicate to those charged
with governance of an entity.
11.11. Give details contained in the long-form audit report.
11.12. List the general content of a management letter.
11.13. Reasons why an auditor may attend a meeting of the stockholders of a
corporation.
11.14. Explain the nature and importance of the audit report.

16
 11.15. Describe the various components of the audit report.
11.16. Explain the nature of the auditor’s responsibility for ‘other information’
contained in the annual report.
11.17. Discuss the nature of the assurance provided in the audit report in respect of
information other than financial statements disclosed in the annual report.
11.18. Describe the auditors’ responsibilities in respect of the directors’ report and
the strategic report.
11.19. Discuss the information provided in audit report about the auditor’s work.
11.20. Discuss when an ‘emphasis of matter’ or ‘other matter’ paragraph might be
required in the audit report.
11.21. Discuss the various forms of modified opinions and identify the
circumstances under which each type would be issued by auditors.
11.22. Outline the reason why auditors have started to include a disclaimer to third
parties paragraph in the audit report.
11.23. Outline auditors’ responsibilities for reporting on corporate governance
issues.
11.24. Outline the procedures the auditor will undertake to review the corporate
governance statement.
11.25. Describe the implications of electronic publication of the audit report.
13 The student should 12.1. Describe auditors’ and directors’ responsibilities for deterring and detecting Fraud and Discussion 2,5 B: Ch. 17 B : 17-1 (Page
be able to explain fraud. Going Concern Small Group hours 752)
fraud and going 12.2. Outline the factors which may indicate a higher than usual risk of fraud. Discussion
12.3. Discuss suggestions made by the audit profession in respect of auditors’
concern Self Directed
responsibilities to detect fraud.
12.4. Describe auditors’ reporting requirements when they suspect fraud has Learning
occurred. Cooperative
12.5. Aware of some recent financial scandals involving auditors. Learning
12.6. Outline the auditors’ responsibilities for considering compliance with law and
regulations.
12.7. Describe the importance of the going concern concept.
12.8. Describe the information sources directors and auditors may use to
determine if a business is a going concern.
12.9. Discuss the potential implications for auditors where there is some doubt
over whether a client is a going concern.
14 The student should 13.1. Describe the nature of the audit expectations gap and identify its component The Audit Discussion 2,5 B: Ch. 18 B : 18-1 (Page
be able to describe parts. Expectations Small Group hours 781)
audit expectations 13.2. Suggest reasons why each component of the audit expectations gap came Gap and Audit Discussion
into existence. Quality
gap and audit Self Directed
13.3. Consider solutions (actual or potential) to reduce the audit expectations gap.
quality 13.4. Explain why the gap may never be closed. Learning
13.5. Discuss the FRC’s framework for audit quality and their oversight Cooperative
mechanisms for monitoring audit quality. Learning

15 The student should 14.1. Understand the concept of corporate governance. Corporate Discussion 2,5 A: Ch. 15 A : 15-18
be able to describe 14.2. Explain causes for corporate governance being in the spotlight. Governance Small Group hours (Page 651)
corporate 14.3. Distinguish between different corporate governance structures. and the Role of Discussion A : 15-19
14.4. Give examples of corporate governance codes.
governance and the Auditor (Page 651)
14.5. Identify major elements of corporate governance.

17
 the role of the 14.6. Evaluate the role of the auditor in corporate governance. Self Directed
Auditor Learning
Cooperative
Learning

16 Final Test

Approved by: Jakarta, February 2019

Head of Accounting Department Course Coordinator

Friska Firnanti, SE., Ak., M.M., M.Ak., CA. Novia Wijaya, SE., M.Si

18
ATTACHMENT

a. Assignment Guide

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 ASSIGNMENT GUIDE 1

Course (credits) : Audit II (3 sks)

Semester : 5
Assignment number : 1
Week 1-7 and 9-15
Assignment name : Assignment from questions on the book (individual task)
Assignment objective : Students able to understand the material described
Assignment deadline : Every week
Collection day : Next week session
Assignment detail :  Re-read all the material that have been explained in the
class
 Do the assignment carefully and systematically
 Collect the assignment to the lecturer
Criteria of assessment :  More correct and accurate answer, better
 More tidy and complete answer, better

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 ASSIGNMENT GUIDE 2

Course (credits) : Audit II (3 sks)

Semester : 5
Assignment number : 2
Week 2-7 and 9-15
Assignment name : Presentation for each small group and continue with discussion
Assignment objective : Students able to present the subject and answer the question
from the audience
Assignment deadline : Every week
Collection day : Every week
Assignment detail :  Re-read all the material that have been explained in the
class
 Prepare the presentation slide
 Do presentation
 Open question and answer session
Criteria of assessment :  More clear and systematic the presentation, better
 More clear and systematic the answer, better
 Include real cases, better

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