All programmes > Introduction to Auditing and International Auditing Standards

Introduction to Auditing and International Auditing Standards (B-KUL-D0N77A)

6 ECTSEnglish52 Second termCannot be taken as part of an examination contract
Willekens Marleen (coordinator) |  Willekens Marleen |  Sufaj Ditmir (substitute) |  N. |  Helsen Griet (substitute)
OC Toegepaste economische wetenschappen FEB Campus Leuven

Aims

After completing D0R92A Introduction to Auditing, students will be able to:

  • Explain what triggers the need for financial statement auditing in the economy and for society
  • Describe the basics of the financial statement audit process
  • Describe the major audit objectives
  • Describe the key concepts of audit process planning: materiality and audit risk
  • Describe different types of audit opinions and their limitations
  • Discuss the basic characteristics of the auditing profession in Belgium and in an international setting

After completing D0N76a International Auditing Standards, students will be able to:

  • Describe the quality control procedures necessary to ensure that a competent audit or review engagement is performed
  • Discuss the overall objectives of an audit and the prerequisites to meet these objectives
  • Describe the process to accept/continue with an audit engagement and explain the importance/content of an audit engagement letter
  • Describe the purposes and contents of good audit documentation
  • Discuss the nature and importance of the communication process with those charged with governance
  • Understand the audit and assurance process, beginning with gaining an understanding of the client and its associated business risks, followed by the assessment of controls to manage, mitigate or share those risks, followed again by the development of an audit program of tests of control and substantive tests and ending in the communication of the results to the shareholders
  • Discuss auditors’ and directors’ responsibilities for the detection of fraud and identify the fraud risk factors in an engagement.
  • Differentiate between different audit tests and procedures, know when they are appropriate and what factors might influence their quality
  • Understand the use and importance of management representation letters
  • Describe the auditor’s responsibilities when facts are discovered after the issuance of the audit report.
  • Point out what is required in using the work of internal auditors/experts and understand the auditor’s responsibility in using their work
  • Distinguish between the different types of opinions given in audit reports and describe/recognize the circumstances which may result in modified audit opinions

Previous knowledge

D0E16A Accountancy of D0T07A Accountancy (TEW) of D0H13A Accountancy (HIR)

D0T13A Corporate financial reporting (TEW) of D0H23A Corporate financial reporting (HIR)

Is included in these courses of study

Activities

3 ects. International Auditing Standards (B-KUL-D0N76a)

3 ECTSEnglishFormat: Lecture26 Second term
N. |  Helsen Griet (substitute)
OC Toegepaste economische wetenschappen FEB Campus Leuven

Content

The objective of this course is to gain a thorough understanding and knowledge of the International Standards on Auditing. After an introduction of the ISA framework, the following topics will be discussed:
- Quality control (ISQC 1, ISA 220);
- General principles and responsibilities (ISA 200, 210, 230, 260);
- Assessing the risk of fraud (ISA 240);
- Planning the audit and risk assessment (ISA 300, 315, 330);
- Risk response and audit procedures (ISA 500, 501, 505, 520, 530, 540, 560);
- Using the work of others and concluding the audit (ISA 610, 620, 570, 580);
- Reporting (ISA 700, 705, 706)

Course material

Uses course material:

* Toledo is being used for this learning activity to disseminate the course material, consisting of lecture slides and readings

Format: more information

During class the ISA’s will be discussed and illustrated using practice examples and exercises (or cases).

Is also included in other courses

3 ects. Introduction to Auditing (B-KUL-D0R92a)

3 ECTSEnglishFormat: Lecture26 Second term
Willekens Marleen |  Sufaj Ditmir (substitute)
OC Toegepaste economische wetenschappen FEB Campus Leuven

Content

  • The role/value of auditing in the economy
  • The financial statement auditing process
  • The major auditing objectives and their link with managerial assertions regarding corporate financial information
  • Audit process planning: materiality and audit risk
  • Audit reporting: different types of audit opinions and their limitations
  • The auditing profession in Belgium and internationally

Course material

Toledo is used for this learning activity to disseminate the course material, consisting of lecture slides and readings

Format: more information


 

Evaluation

Evaluation: Introduction to Auditing and International Auditing Standards (B-KUL-D2N77a)

Type : Partial or continuous assessment with (final) exam during the examination period
Description of evaluation : Written, Paper/Project, Presentation
Type of questions : Multiple choice, Open questions

Explanation


Evaluation features

* The exam is written and closed book.

* The deadline  for handing in the assignments will be determined by the lecturer and communicated via Toledo

Determining the result

  • The grades are determined by the lecturer as communicated via Toledo and stated in the examination schedule. The result is calculated and communicated as a whole number on a scale of 20.
  • The final grade is a weighted score. Both parts of the course will count for 10 points of the final grade.
  • For ‘Introduction to Auditing’, the assignments are graded and count for 15% of the final grade, the final exam counts for the other 85%.
  • If the student does not participate in one (or more) of the partial evaluations, the grades for these partial evaluations will be a 0-grade within the calculations of the final grade.
  • If the set deadline was not respected, the grade for that respective part will be a 0-grade in the final grade, unless the student asked the lecturer to arrange a new deadline. This request needs to be motivated by grave circumstances.

Retake

  • The features of the evaluation and determination of grades are identical to those of the first examination opportunity, as described above.
  • Due to the nature of the assignment/paper, the grade attained at the first examination opportunity will be transferred to the second examination opportunity.

Information about retaking exams

See 'Explanation' for further information regarding the second examination opportunity.