ACY3004 - Auditing and Assurance 1
|Year of Study:||3|
|Prerequisites:||ACY3001 Intermediate Accounting 1 or ACY3111 Corporate Accounting 1|
This module aims to introduce students to the principles and practices of auditing and assurance, and the regulatory framework of auditing profession in Hong Kong. It explores the role of auditors and the needs for auditing. Emphasis is placed on the external audit in financial reporting, the risk assessment process and the auditor’s responses to the assessed risks. Students are expected to understand fully the principles of auditing and assurance. They should also demonstrate their ability to apply these principles to different business scenarios. Applications of audit process to various transaction cycles and financial statements areas are also covered.
Upon completion of this module, students should be able to:
- understand the regulatory and professional frameworks of the auditing profession, including the professional ethics and independence requirements;
- recognize the audit planning process, including client acceptance procedures, selection of audit methodology and approach, understanding of the client business and risk assessment;
- develop appropriate responses to the assessed risks, including consideration of materiality, design and implementation of audit procedures, development of audit sampling, collection of audit evidence and preparation of audit documentation;
- demonstrate and apply the audit process to different operating cycles and financial statements areas; and
- analyze business information and apply multi-disciplinary knowledge for solving auditing related problems and present ideas and solutions by using communication and presentation techniques.