ACC 307: Auditing and Assurance I

Learning Outcomes

At the end of this course, students should be able to:

  1. discuss the objectives and scope of external auditing and assurance;
  2. describe the legal and regulatory framework for auditing and assurance;
  3. discuss the steps of audit process;
  4. demonstrate skills in writing and communicating findings of audit report after the conclusion of the audit engagement;
  5. apply appropriate auditing standards to auditing and assurance;
  6. Distinguish between errors and fraud;
  7. Explain the public expectation from audit and the gaps to date; and
  8. Identify the functions of the Financial Reporting Council of Nigeria (FRCN).
Course Contents

Definitions, objectives, benefits, types, basic concepts of auditing. Differences between errors and frauds, audit expectation gap, true and fair view, auditors’ independence. Concept of materiality (ISA 320), reasonable assurance, public interest and professional scepticism. The legal and regulatory frameworks for statutory audit and assurance in line with the provisions of – Companies and Allied Matters Act, 2020, Financial Reporting Council of Nigeria Act, 2011, International Standards on Auditing (ISAs),

International Standards on Assurance Engagements (ISAEs) and other frameworks of professional accountancy bodies in Nigeria. Basic steps of audit and assurance process in relation to – nomination of auditors (CAMA 2020), and engagement and acceptance (ISA 210, ISA 510, ISA 300, ISA 320, ISA 520, and ISA 600). Audit planning and strategy, covering – analytical procedures, materiality, internal control assessments, reliance on internal audit, specialists and other auditors ISA 620, tests of control, and visits to locations, branches and departments (ISA 300, ISA 530, ISA 315, and ISA 220). Audit risk, covering – analysis and evaluation of audit risks, audit risk assessment (ISA 315 and ISA 320) and post audit client review.

Discuss audit evidence covering – nature of audit evidence (ISA 500, 501, ISA 505 and ISA 520), management representations (ISA 580), cut-off procedures and documentary evidence (ISA 530), audit documentation (ISA 230), audit samples (ISA 530 and ISA 540). Management letter (ISA 260 and ISA 265) and the application of computer assisted audit techniques in audit evidence. Audit reporting, covering – statutory requirements for audit report (CAMA 2020), types of audit report, expectation gaps, professional liability and concept of key audit matters (KAM) – ISA 701; ISA 700; ISA 700 and ISA 705.