BINDURA UNIVERSITY OF SCIENCE EDUCATION

FACULTY OF COMMERCE

DEPARTMENT OF ACCOUNTANCY

Semester: August – December 2020

Lecturer: Mutero S: Mobile 0779 865 114: smasukume@buse.ac.zw. Office No.

09: Commerce Block. Main Campus: Consulting Time: By appointment

AC403 – Advanced Auditing 1 Course Outline

Course Aims and Objectives

Designed to reflect the challenges auditors will face in their professional life. You will
be required to analyse, evaluate and conclude on the assurance engagement and
other audit and assurance issues in the context of best practice and current
developments.

Course Outline

Week Lecture( Content

Hrs)
1 1 (2)  Rights and duties of the auditor
 List and explain information pertaining to the auditing
profession and the position of an auditor

2(2)  Explain the nature and rationale of professional ethics

 Explain the regulatory and standard setting
procedures
 Analyse and assess the responsibilities, rights and
duties of an auditor
2 3 (2)  Theft, fraud and error (ISAs 315, 330, 240 and 500)
 What comprises fraud or an error
 The auditor’s duty with regard to fraud and errors
 The auditor’s attitude to the risk of fraud and error
 The procedures the auditor should follow when his
suspicions are aroused.
4 (2)  Appointment, resignation and removal (ISAs 210, 320,
 A change in professional appointment,
resignation/dismissal of the auditor or the filling of
casual vacancy
 The provision of the company’s act regarding
appointment, removal and resignation of auditors
 First appointment of auditor

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  Annual appointment of auditor
 Casual vacancies

3 5(2)  Disqualification for appointment as auditor

 Removal
 Resignation
 Professional contact regarding professional
appointments
 Procedures for accepting professional appointments
 Guidelines for incoming auditors
 Previous audited accounts
 Changes in basis of accounting
 Changes in appointment during the financial year
 Engagement letters
6(2)  Discuss the development of the law relating to
auditor’s liability
 Discuss negligence performance of duties by the
auditor
 Assess whether the auditor apply the care and skill
which a reasonable and competent, careful and
cautious auditor would use
4 7 (2)  The audit process
 Pre-engagement activities
 Perform new client investigation or consider change in
circumstances of existing client
 Determine skills and competence requirements
 Establish terms of engagement (engagement letter)

8(2)  Planning activities

 Acquire knowledge of the entity’s business
 Obtain understanding of the accounting system and
related internal controls of the entity
 Study and document internal controls
 Perform risk analysis
 Assess inherent and control

5 9(2)  Consider and calculate materiality limits

 Formulate an audit approach
 Compliance and substantive procedures
 Perform compliance procedures
 Perform substantive procedures
 Evaluating, concluding and reporting activities

10(2)  Perform an overall review of financial information

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  Evaluate the effect of unresolved audit differences on
the audit report
 Conclude on the results of the audit as a whole
 Issue audit report
6 11(2)  Audit risk
 Inherent risk
 Control risk
 Detection risk
 Engagement risk
12 (2)  Audit evidence
 Evidence maybe; obtained by the auditor himself,
external evidence from third parties, internal evidence
 Inspect (documents, minutes, articles etc)
 Enquire (of management, attorneys etc)
 Confirm (by requesting confirmation from a third party

7 13(2)  Re-perform (calculations)

 Compare (balances or when performing analytical
review)
 Observe (compliance with internal control)
 Evaluate (results of audit tests)
 Assess audit risk, materiality etc)

14(2)  Working papers

 Documentation of work performed
 Assistance in the performance of an audit
 Documentary support for the opinion of the auditor

8 15 (2)  Audit planning

 Devotion of appropriate attention to important areas of
the audit
 Prompt identification of potential problems

16(2)  Proper utilisation of audit assistance

 Proper coordination of work done by other auditors
and specialists
 Timeous completion of work
9 17 (2)  Internal control procedures that would provide
adequate control over the transaction cycle
 Controls in computer based system

18(2)  Planning
 Study and evaluation of accounting systems and
internal controls
 Performance of auditing procedures
10 19 (2)  Compliance and substantive procedures
 Have internal control procedures been consistently

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 applied during the period under review

20(2)  Have internal control procedures been carried out by

appropriate and authorised persons
 Have internal control procedure been performed as
they were designed to be performed

21(2)  Tutorial
11 22(2)  In-class
12 23 (2)  Audit Sampling (an overview of all sampling methods)

24 (2)  Audit reporting

13  Revision
14  Exam
15  Exam

Assessment

Course Work 30%

Exam 70%

Recommended Texts

Dynamic Auditing – Manx B et al – Butterworths latest edition

Companies Act – Chapter 24:03
Corporate Law. 3rd Edition- Cilliers H S et al
Auditing EDP System. 2nd Edition – Watne D A and Turney Peter B B. Prentice
Hall.
Relevant Acts

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Course Outline Review Panel

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