MOSHI CO-OPERATIVE UNIVERSITY (MoCU)

BAF 303: AUDIT AND ASSURANCE SERVICES

COURSE CONTENT
Faculty : Business and Information Sciences
Department : Accounting and Finance
Programme : BAF, BAT & BCMA
Instructor :
Contacts
Name
Email Phone
Said Nassoro Said said.nassoro2@mocu.ac.tz +255 (0) 655 784 406

Office : Sokoine LT Office No 2

Course Status : Core

Credit Rating : 12 credits
Total Hours Spent : 120 hours
Mode of Delivery : Face to Face

Course Aim
Upon completion of the course, students will be able to:
i) Conduct entity audits and assurance engagements while adhering to ethical standards
set by both the Institute and the profession.
ii) Acquire essential knowledge, skills, competencies, and professional skepticism required
for auditing practices.
iii) Develop a strong foundational understanding of audit and assurance principles.
iv) Engage in critical thinking, analyze complex issues, and assess practical scenarios within
the legal, regulatory, professional, and ethical framework of the auditing profession.

Course Expected Learning Outcomes

By the end of this course, a student should be able to:
(i) Apply Auditing and assurance Standards and relevant laws in undertaking auditing and
assurance engagements,
(ii) Use different auditing techniques in evaluating audit evidence,

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(iii) Manage and execute assurance engagements,
(iv) Managing auditing and assurance engagements in complex acc 206 situations,
(v) Prepare Audit and Assurance reports.
(vi) Perform internal audit in private and public sector,
(vii) Evaluate the evidence-based conclusions from audit and assurance procedures to
communicate effectively to various stakeholders choosing appropriate report formats.
(viii) Critique current issues and developments relating to audit and assurance services.

Topics
1. Legal framework
2. Obtaining, accepting, continuing and managing assignments
3. Internal audits
4. Planning
5. Evidence
6. Internal control
7. Audit reviews and finalisation
8. Reporting
9. Public sector audit
10. Technology disruption in audit and assurance

TOPIC 1: LEGAL FRAMEWORK

Introduction to audit and assurance services
The concept of audit and other assurance engagements, the objective and general
principles of external audit engagements, elements of an assurance engagement, and
types of assurance engagement.

Legal Issues
The regulatory environment within which external audits take place, reasons and
mechanisms for the regulation of auditors, the statutory regulations governing the
appointment, rights, removal and resignation of auditors, the regulations governing the
rights and duties of auditors, the nature and purpose of laws, regulations standards
and codes in the context of assurance engagements, expectation gap, auditors’

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 liability, extent of legal liability including criminal and civil law liability including
professional negligence issues and how they can be mitigated. Money Laundering,
Predicated Offences and Financing of Terrorism Under Anti-Money Laundering Act,
responsibilities of management and auditors in relation to compliance with laws and
regulations in an audit of financial statements, the auditor’s considerations of
compliance with laws and regulations, how and to whom non-compliance should be
reported.

Regulatory Frameworks
Development and status of International Standards on Auditing, Standard setting
process at national and international level, Interaction between national laws and
regulations and the requirements of an assurance engagement, different jurisdictions
and how the deal with audit issues including national approaches, international
approaches and approaches such as the US Sarbanes-Oxley and related
requirements for audit.

Professional Ethics
Professional and ethical issues that may arise during assurance engagements, the
fundamental principles of professional ethics, threats to the fundamental principles,
safeguards to offset the threats to the fundamental principles, auditor's responsibility
concerning auditor independence, conflicts of interest and confidentiality;

Corporate governance
The objectives, relevance and importance of corporate governance, the provisions of
international codes of corporate governance (such as OECD) that are most relevant
to auditors, Good corporate governance requirements relating to directors'
responsibilities (e.g., for risk management and internal control) and the reporting
responsibilities of auditors, corporate governance deficiencies and provide
recommendations to allow compliance with international codes of corporate
governance, the structure and roles of audit committees and their benefits and
limitations.

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TOPIC 2: OBTAINING, ACCEPTING, CONTINUING AND MANAGING ASSIGNMENTS
Obtaining, Accepting and Continuing Audit Engagements
Professional appointments, the process of obtaining audit work, new engagements
and acceptance procedures, Advertising, tendering, and obtaining professional work
and fees the legal, requirements of professional ethics and ISAs in relation to the
acceptance/continuance of audit engagements, potential issues that determine the
nature, scope and extent of an assurance or audit engagement, importance and
purpose of engagement letters and their contents.

Managing Assignments
The overall objectives and importance of quality control procedures in conducting an
audit, quality control procedures that should be in place over engagement
performance, monitoring quality and compliance with ethical requirements.

TOPIC 3: INTERNAL AUDITS

Meaning and purpose of internal Audit, International Professional Practice Framework
(IPPF), Internal audit and governance, and the differences between external audit and
internal audit, Outsourcing of Internal Audit function. internal audit assignments.

TOPIC 4: PLANNING
The overall objectives of the auditor and the need to conduct an audit in accordance
with ISAs, review of financial statements, analysis and interpretation of data and other
information, risk and risk assessment, analytical procedures, materiality,
understanding of the entity and its environment, business risks and risk of material
misstatement, fraud, law and regulations, planning, conducting and documenting an
audit.

TOPIC 5: EVIDENCE
The concept of audit evidence, quality and quantity of audit evidence, relevance and
reliability of audit evidence, sources of audit evidence, financial statements assertions,
audit procedures to obtain audit evidence, audit sampling and other means of testing,
the audit of specific items, automated tools and techniques, the work of others.

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TOPIC 6: INTERNAL CONTROL
The meaning and nature of internal controls, types of internal controls, objectives of
internal controls, benefits of the internal control system, components of internal
control, the use of internal control systems by auditors, internal controls in a
computerised environment, tests of control and evaluation of internal controls,
communication on internal control, internal audit and governance, and the differences
between external audit and internal audit, the scope of the internal audit function,
outsourcing and internal audit assignments.

TOPIC 7: AUDIT REVIEWS AND FINALISATION

Communication with management, directors and those charged with governance
including action taken when such issues cannot be agreed, subsequent events, going
concern, overall review of the financial statements, evaluation of misstatements, final
analytical review, review of procedures, and written representations.

TOPIC 8: REPORTING
Types of reports, the independent auditor's report, content of report, forming an
opinion, modified opinions, the format and content of emphasis of matter and other
matter paragraphs, auditors’ responsibilities before and after date of audit report.
Communicating with those charged with governance: Reasons for communicating,
Matters to be communicated, Timing of communication.

TOPIC 9: PUBLIC SECTOR AUDIT

The role of the Controller and Auditor General (CAG), Legal environment in which the
CAG and auditee’s function, Specific considerations for public sector auditing, The role
of INTOSAI, Value for Money Audit, The role of Internal Auditor General.

TOPIC 10: TECHNOLOGY DISRUPTION IN AUDIT AND ASSURANCE

Introduction to AI in Audit: Overview of artificial intelligence and its relevance to the
audit profession, Evolution of AI technologies and their impact on audit practices,
Ethical and regulatory considerations of using AI in audit. AI-Powered Tools and
Technologies: Overview of AI-powered tools used in audit, including machine learning,

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 natural language processing, and data analytics, Case studies showcasing the
application of AI in audit procedures. Integrating AI into Audit Planning and Risk
Assessment: Using AI to enhance audit planning processes and identify areas of risk,
Leveraging AI-powered tools to assess the effectiveness of internal controls and
detect potential fraud. AI-Driven Data Analytics: Techniques for analyzing large
datasets using AI-powered data analytics tools, identifying patterns, anomalies, and
trends in financial data to inform audit decisions. Automation in Audit: Automating
repetitive audit tasks using AI technologies, streamlining audit workflows and
improving efficiency through automation. Interpretation and Communication of AI
Insights: Strategies for interpreting AI-generated insights and findings, Communicating
audit results effectively to clients and stakeholders. Applying AI technologies to solve
audit challenges and optimize audit processes, Future Trends and Developments in
AI and Audit.

Reading List:
1. Whittington, R., & Pany, K. (2024). Principles of Auditing & Other Assurance Services:
2024 Release (9th ed.). McGraw Hill LLC.

2. Louwers, T. J., Bagley, P. L., Blay, A. D., Strawser, J. R., & Thibodeau, J. C. (2024).
Auditing & Assurance Services. McGraw Hill LLC.

3. Elder, R. J., Beasley, M. S., Hogan, C. E., & Arens, A. A. (2020). Auditing and Assurance
Services: International Perspectives (17th ed.). Pearson Education Limited.

4. Messier, W, Glover, S, Prawitt, D (2016) Auditing and Assurance services – A systematic

Approach, 10th ed., McGraw Hill Education.

5. Whittington, R., & Pany, K. (2022). Principles of Auditing & Other Assurance Services,
22nd Edition. McGraw Hill.

6. Lambe, P. (2023). Principles of Knowledge Auditing: Foundations for Knowledge

Management Implementation. The MIT Press.

7. Moroney, R., Campbell, F., & Hamilton, J. (2020). Auditing: A Practical Approach. Wiley.

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8. NBAA, (2019). Auditing and Assurance Services, Study Text. Tanzania Printing Services
Ltd.

9. ACCA (2023), Audit and Assurance (AA) Study Text. Kaplan Publishing UK.

10. ACCA, (2023) Audit and Assurance, Study Text. BPP Learning Media.

11. International Federation of Accountants (Current), Handbook of International Auditing,

Assurance and Ethics, IFA, London.

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