Course Code : BAC307/05

Course Title : Auditing and Assurance Services in Malaysia

Advisory Prerequisite(s) : BBM 206/05 Business Accounting II
Level : Higher
Credit hours :5
Duration of course : 1 semester

Course Coordinator
Dr. Loo Choo Hong
PhD (Management) (UNIRAZAK), MBA (USM), CA (M), ACMA (UK), CGMA (UK/USA),
BPA(Hons)(UUM)

BAC 307/05 Auditing and Assurance Services in Malaysia is a core major course within the
Bachelor of Business in Accounting (Honours) programme. The overall aim of this course is to
provide students with the knowledge about auditing and assurance services in Malaysia for the
needs of accountants, auditors or business managers in the market. This course focuses on the
principles governing an audit. Students are introduced to the professional and legislative
requirements governing the auditor and audit work. Students are also exposed to the various
phases in the audit process and on how the auditors gather variety of evidence in order to draw
conclusions and draft an audit report. In addition, students will learn the audit process covering
accounting cycles such as sales and collection, payroll and personnel, acquisition and payment,
inventory and warehousing, acquisitions and repayment and cash balances The concepts that
students will be studying on this course require an understanding the meaning of certain audit
terms and current issues in auditing.

Learning Outcomes
After successfully completing this course, students should be able to:
• explain the functions of auditing and the role of auditors.
• discuss the ethical issues/dilemmas faced by auditors.
• explain the underlying concepts and apply the auditing standards and guidelines as set by the
Malaysian Institute of Accountants.
• discuss the audit process and procedures of audit management, risk assessment, audit
evidence assessment and audit sampling.
• appraise the importance of internal controls and evaluate the internal control system of the
client.
• apply appropriate audit procedures in the audit of business cycles and financial statement
items.
• explain wrap-up procedures in the final stage of the audit and evaluate the audit report.
• communicate audit findings to clients.
• evaluate the implication of information technology for an audit environment.
• explain auditing in a computerized information system (CIS) environment and use of
Computer Assisted Audit Techniques (CAATs) as an audit tool.
• explain other assurance services offered by auditors.
• identify and discuss contemporary auditing issues.

Topics
• An Overview of Auditing and the Audit Process
• Application of the Audit Process to the Sales and Collection Cycle
• Application of the Audit Process to Other Cycles
• Completing the Audit
• Assurance Engagements and Related Services

Main Reference
Amran, N A, Fadzil, F H, Mohammad Yusof, N Z, Mohamad Nor, M N, Shafie, R (2008) Auditing
and Assurance Services in Malaysia: An Integrated Approach, 2nd edn, Pearson Prentice Hall.

Other references
Millichamp, Alan and Taylor, John (2008), Auditing (9th Edition), Cengage UK.

Gray Iain, & Manson Stuart (2011), The Audit Process: Principles, Practice and Cases, 5th
edition, Cengage UK.