Unit Information Management System

Auditing (ACCT3322, SEM-2, 2017, Crawley)

UWA Business School

Unit Outline



SEM-2, 2017

Campus: Crawley

Unit Coordinator: Professor David Gilchrist

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Unit details

Unit title Auditing
Unit code ACCT3322 Credit points 6
Availability SEM-2, 2017 (31/07/2017 - 25/11/2017)
Location Crawley Mode Face to face

Contact details

Faculty Business School
School UWA Business School
School website http://www.business.uwa.edu.au/
Unit coordinator Professor David Gilchrist
Email david.gilchrist@uwa.edu.au
Consultation hours Wednesdays from 10:00am - 11:00am
Tutors/ Demonstrators/ Facilitators
Unit contact hours

Lecture times:

 Original: Tuesdays, 3:00pm - 5:00pm

 Repeat: Fridays, 9:00am - 11:00am

Lecture venue:

Please refer to http://www.timetables.uwa.edu.au for the unit timetable.

Online handbook http://handbooks.uwa.edu.au/units/unitdetails?code=ACCT3322
Unit website http://www.lms.uwa.edu.au

Unit rules

Prerequisites ACCT2201 Corporate Accounting
Advisable prior study
Approved quota

Unit description

This unit provides an introduction to auditing and an overview of the audit process and brings together many of the issues considered in other units studied as part of the Commerce degree. Topics include auditing concepts and procedures; the scope and limitation of auditing; auditing standards and responsibilities; legal aspects; internal control; audit risk analysis; audit evidence; and impact of CIS on auditing and audit reports. The unit also addresses many of the current issues affecting the auditing profession including the growing area of assurance services.


Welcome to ACCT3322 Auditing. Auditing is an inter-disciplinary subject in that it draws upon your knowledge and understanding of company law, financial accounting, management accounting, accounting information systems and taxation. It is impossible to cover all of the areas in depth for a unit spanning 13 weeks but the course aims to lay a foundation for those students who will proceed to an audit working environment by enabling them to apply and build on the concepts learnt in this unit. Those students who do not wish to enter public practice will nevertheless gain an appreciation of the audit function and its important role in the business and assurance arena.

The unit emphasis on practical auditing concepts, auditor’s decision-making processes and audit procedures undertaken in the course of an audit. The core theme of the course is external audit of corporations, from initial planning to final reporting in the context of a professional environment.

Unit content

The role of an auditor in the assurance marketplace; auditor’s rights, duties and responsibilities; auditing standards; audit planning; audit evidence; tests of controls; substantive testing and audit reporting.

Unit goals

This unit introduces you to the principles and practice of auditing. It is designed to give you knowledge of the theoretical concepts surrounding the audit function as well as an overview of the audit process. The various stages of the auditing process are examined during the course of the semester with some of the more important processes examined in detail.

The objectives of ACCT3322 are to develop your understanding of various audit processes and to advance your analytical and decision making skills through application of auditing theory and concepts to practical problems. Your ability to do well in auditing depends on your ability to think laterally, rather than to memorise information. Strong emphasis is placed on your ability to communicate your views in a clear, concise and logical manner.

Learning outcomes

Students are able to (1) demonstrate an understanding of the regulatory framework in which the audit function operates; (2) explain auditing concepts, principles and the audit process; (3) critically analyse client-specific, industry and economic conditions and assess their impact on a client's business risks; (4) plan and execute an audit, analyse audit findings and form an appropriate audit opinion; (5) evaluate and solve audit issues individually and in teams; (6) effectively communicate an understanding ofauditing concepts and issues through oral presentations and written answer; and (7) reflect on the learning process.

Unit structure

For standard teaching period: lectures: 2 hrs per week; tutorials: 1 hour per week (Enrol via CAS)

(See Timetable)

Unit schedule

WeekDate Week CommencingLecture TopicAdditional ReadingTutorial: Pre-assigned questionsAssessmentsComments/Reminders
131 JulyCh:1 Assurance and auditing: an overview;
Ch:2 Audit regulation, structure of the profession and auditor's liability
Relevant auditing standardsDiscussion of the unit outline
27 AugustCh:3 Ethics, independence and corporate governanceRelevant auditing standardsQ. 1.14, 1.21, 1.26, 2.2, 2.8Online: Quiz 1 (Ch1, 2)
314 AugustCh:4 Overview of elements of the financial report audit processRelevant auditing standardsQ. 3.18, 3.20, 3.23Online: Quiz 2 (Ch3)
421 AugustCh:5 Planning, understanding the entity and assessing business riskRelevant auditing standardsQ. 4.18, 4.20, 4.24, 4.30Online: Quiz 3 (Ch4);
Tutorial: Oral Presentations commence
528 AugustCh:6 Assessing inherent risk and other specific business risksRelevant auditing standardsQ. 5.15, 5.21, 5.25 (C)Online: Quiz 4 (Ch5);
Tutorial: Oral Presentations continue
64 SeptemberCh:7 Understanding and assessing internal control;
Ch:8 Tests of controls
Relevant auditing standardsQ. 6.13, 6.17, 6.26Online: Quiz 5 (Ch6);
Tutorial: Oral Presentations continue
711 SeptemberCh:9 Substantive tests of transactions and balancesRelevant auditing standardsQ. 7.16, 8.4, 8.20 Online: Quiz 6 (Ch7, 8);
Tutorial: Oral Presentations continue
The sign-up for a case study group closes at 5:00pm on Friday, 16 September
818 SeptemberCh:10 Audit samplingRelevant auditing standardsQ. 9.2, 9.22, 9.28Online: Quiz 7 (Ch9);
Tutorial: Oral Presentations continue
Mid-semester study break25 - 29 September
92 OctoberCh:11 Completion and communication;
Ch:12 The auditor's reporting obligations
Relevant auditing standardsQ. 10.18, 10.20, 10.24Online: Quiz 8 (Ch10);
Tutorial: Oral Presentations continue
109 OctoberCase study - Phase 1Relevant auditing standardsQ. 11.19, 11.24 Online: Quiz 9 (Ch11);
Tutorial: Oral Presentations continue
Lecture: Case Study
1116 OctoberCase study - Phase 2Relevant auditing standardsQ. 12.22, 12.25, 12.27Online: Quiz 10 (Ch12);
Tutorial: Oral Presentations continue
Lecture: Case Study
1223 OctoberCase study - Phase 3Relevant auditing standardsLecture: Case StudyNo tutorials this week.
1330 OctoberCase study - Phase 4Relevant auditing standardsLecture: Case StudyNo tutorials this week.
Pre-examination study break6 - 10 November
Semester 2 examination period11 - 24 November

Teaching and learning responsibilities

Teaching and learning strategies

The classes will be interactive and a number of tools will be used to engage students and enhance students' learning experience. Some of the teaching techniques used are:

  1. Comprehensive case study: You will get a hands-on experience by completing a comprehensive case study designed for students to learn to plan an audit, execute the audit plan and complete the audit by providing an appropriate audit opinion. The case study will increase and reinforce your understanding of audit principles and techniques. It will also assist in the development of soft skills such as critical evaluation, judgement, decision-making, effective team work, time management and oral and written communication. The case study will induce you to take a deeper approach to learning as opposed to a surface approach; thereby enhancing your learning experience. The activity is open book and is a team activity.
  2. Oral presentations: You will get an opportunity to research any current topic relevant to the audit practice and present it to your class. For your presentation, you may investigate any audit issue/topic from the vast body of audit literature or newspaper articles/media releases.  This is an individual assessment with the aim to develop your research and oral communication skills.
  3. Weekly quizzes: Weekly quizzes will allow you to remain on track with the course material and provide you an opportunity to evaluate your understanding in a timely manner.
  4. Tutorial preparation and participation: An ongoing assessment of your preparation and participation in weekly tutorials will assist you in keeping up to date with the course material and actively engage in learning. You are encouraged to ask questions, seek information and build confidence in your abilities.

Teaching and learning evaluation

You may be asked to complete two evaluations during this unit. The Student Perception of Teaching (SPOT) and the Students’ Unit Reflective Feedback (SURF). The SPOT is optional and is an evaluation of the lecturer and the unit. The SURF is completed online and is a university wide survey and deals only with the unit. You will receive an email from the SURF office inviting you to complete the SURF when it is activated. We encourage you to complete the forms as your feedback is extremely important and can be used to make changes to the unit or lecturing style when appropriate.


Participation in class, whether it be listening to a lecture or getting involved in other activities, is an important part of the learning process, therefore it is important that you attend classes. More formally, the University regulations state that ‘to complete a course or unit students shall attend prescribed classes, lectures, seminars and tutorials’.

Important Note:

There are assessments in tutorials. Hence, nominate your tutorial preferences with due care.

Charter of student rights and responsibilities

The Charter of Student Rights and Responsibilities upholds the fundamental rights of students who undertake their education at the University of Western Australia.  The University's charter of Student Rights and Responsibilities is available at www.governance.uwa.edu.au/procedures/policies/policies-and-procedures?method=document&id=UP07/132

Student Guild contact details

The UWA Student Guild is the peak representative body for all students enrolled at UWA. The Guild Student Assist team (consisting of qualified social workers and counsellors) can provide independent, confidential advice on anything affecting your study, including financial, academic, and welfare matters. The Guild also offers hundreds of events, student clubs, volunteering and leadership opportunities, and member discounts. More information and contact details can be found at www.uwastudentguild.com.

Uses of student feedback


Your academic orientation includes three online units which you must complete within the first 10 weeks of your enrolment:

AACE1000 Academic Conduct Essentials (ACE)  (just this for postgraduate)
INDG1000 Indigenous Study Essentials
CARS1000 Communication and Research Skills

Information for students with disabilities

The University has a range of support services, equipment and facilities for students with a disability. If you would like to receive advice on these services please email uniline@uwa.edu.au or visit www.student.uwa.edu.au/life/health/uniaccess

Using peer feedback to assess team contributions

The online tool SPARKPLUS may be used to assess individual contributions to team work. Where Spark is used you will be required to provide feedback to, and receive feedback from, your team members. Based on a series of answers from each team member SPARKPLUS automatically produces two weighting factors: your RPF and SAPA. The use of SPARKPLUS will be explained in class and more information is available on LMS.


Assessment overview

Typically this unit is assessed in the following ways: (1) tutorial attendance and participation; (2) online quizzes; (3) case study; (4) oral presentations; and (5) final examination. Further information is available in the unit outline.

Assessment mechanism

#ComponentWeightDue DateRelates to Outcomes
1- In-class activitiesPreparation and participation within tutorials5%Ongoing1 - 5
Case Study20%Weeks 10 - 132 - 5
Oral Presentations10%Weeks 4 - 111, 5 - 6
2 - Online activitiesWeekly Quizzes10%Weeks 2 - 111 - 5
3 - Written assessmentFinal Examination55%Semester 2 examination period: 12 - 26 November1 - 7

Assessment items

ItemDescriptionSubmission Procedure
#1- In-class activitiesIn-class activities include (1) Tutorial preparation and participation, (2) Oral presentations and (3) Case study.
Tutorial preparation and participation: You will be assessed based on the effort you put into the preparation for the assigned tutorial activities as well as participation within your allocated tutorial. To be assessed on an ongoing basis in tutorials.
Oral presentations: Oral presentations will commence in Week 4 and will continue through to Week 11. You are required to submit a short written summary of your chosen presentation topic prior to the presentation. Further details regarding the submission due date and presentation schedule will be provided closer to the time.Written submission to be made through LMS.
Oral presentations to be held and assessed in tutorials. Relevant weeks: Week 4-11
Case study: This team-based open-book activity will be undertaken in lectures in teams of four.
You need to ensure that you sign-up for a team by 5:00pm on Friday, 16 September, 2016. Team members remain the same throughout the case study.
Members within a team will be awarded the same score. An absent member will be awarded a 'zero' for the relevant week.
To be held and assessed in lectures.
Relevant weeks: Week 10-13
#2- Online activitiesOnline activities include the completion of 10 weekly quizzes.
Each quiz can be attempted only once and has to be completed within the set time limit.
Each weekly quiz has equal weightage and will count towards the total grade.
Weekly submission to be made online through LMS. Relevant weeks: Week 2-11
#3- Written assessmentThe entire content is examinable in the final exam.
The exam is closed book and will be of 2 hours duration. Further details pertaining to the structure and format of the examination will be provided closer to the time.

Academic literacy and academic misconduct

The University of Western Australia takes very seriously the matter of academic misconduct by students and has policies in place that define misconduct (including plagiarism) and the penalties that apply. The consequences for misconduct can be severe, including exclusion from the University.

All students are expected to make themselves aware of the definitions and the policies relating to academic misconduct, found at the websites below, and with any additional requirements or stipulations that may be provided by individual coordinators www.governance.uwa.edu.au/procedures/policies/policies-and-procedures?policy=UP07%2F21

Appeals against academic assessment

The full regulations governing appeals procedures are available in the University Handbook at http://rules.handbooks.uwa.edu.au/rules/student_rules/

Penalty for late submission

A penalty of 5 per cent of the total mark allocated for the assessment item is deducted per day for the first 7 days (including weekends and public holidays) after which the assigned work is not accepted. Each 24-hour block is recorded from the time the assignment is due.

 Penalty for exceeding word limit

Where an assignment exceeds the word limit, a penalty of 1 per cent of the total mark allocated for the assessment task applies for each 1 per cent in excess of the word limit.

Textbooks and resources

Recommended texts

Gay, G and Simnett, R 2015, Auditing and Assurance services in Australia 6e, McGraw Hill Education (Australia).

Options: The text book is available in the following formats:

1. Print text from the bookshop. ISBN 9781743761267. [Note: The textbook comes with access code to Connect, an optional on-line tool that can be used to attempt some additional interactive exercises.]

2. E-book from the publisher's website. It is downloadable. ISBN: 9781308447483

3. SmartBook from the publisher's website. It is an interactive version of the textbook. However, it is not downloadable. ISBN: 9781743764237

Please note that revisions have been made to some of the Australian Auditing Standards, hence using an earlier edition of the text is not recommended.

Suggested alternate texts

Additional texts

Australian Auditing Standards and Guidance Statements issued by the Auditing and Assurance Standards Board (AUASB) are available under the 'pronouncements' section on the AUASB website. Link to the AUASB website is http://www.auasb.gov.au/Home.aspx 

Technical requirements

Software requirements

Additional resources and reading

The following journals and newspapers are all very good references for current issues facing the auditing profession and users of accounting information and can all be found within the Business Library system (i.e., either in hard copy or electronically).

Australian Accounting Review

Accounting, Auditing & Accountability Journal

Journal of Accounting, Auditing & Finance

Accounting and Finance

Auditing: A Journal of Practice and Theory

Journal of International Accounting, Auditing and Taxation


I encourage you to read widely of newspapers such as the Australian Financial Review or the UK Financial Times. Using current business transactions and events reported in these newspapers is a good way to challenge your understanding of the concepts and learning outcomes that we address in this unit. You can also use the database 'ProQuest' to access newspaper and journal articles on various audit issues.

You can also review Course Materials Online on the Library Website for additional resources and reading material.

Other important information


The unit is intensive and demanding, in Weeks 10 to 13 lectures, interactive activities are to be implemented to improve your learning and engagement. I will need you to work with me in the lecture to make your learning experience fun and effective. There will be case studies involving group discussions, therefore it is NOT SUITABLE to record lectures in Weeks 10 to 13.

Note: Lectures scheduled in Weeks 1 to 9 will be recorded and made available through Echo, the lecture capture system used by UWA.

Standard of assessment

The Business School must ensure that the processes of assessment are fair and are designed to maintain the standards of the School and its students. The School follows the UWA marks and grades distribution:

Higher distinction






Credit pass












Failed component




The scaling of marks to ensure comparability between classes is an acceptable academic practice. The School and Board of Examiners have the right to scale marks where it is considered necessary to maintain consistency and fairness.

Quality assurance

Your assessed work may also be used for quality assurance purposes, such as to assess the level of achievement of learning outcomes as required for accreditation and audit purposes. The findings may be used to inform changes aimed at improving the quality of Business School programs. All material used for such processes will be treated as confidential, and the outcome will not affect your grade for the unit.

Approved calculators for examinations

The University permits only the use of calculators in examinations when the calculator has an approved sticker and the examiner permits their use.  If the student does not have an approved sticker on their calculator, they will not be permitted to use the calculator.  Calculators can be approved at the Undergraduate Student Centre, the Postgraduate Student Centre or at Student Administration.  Further information is available on the Business School website at www.business.uwa.edu.au/students/assessments

Special consideration/alternative arrangements

If you are unable to attend a class, tutorial or examination due to circumstances beyond your control and are seeking an extension for submission of an assignment or a deferred exam, please read valid reasons for special consideration at www.student.uwa.edu.au/life/health/uniaccess/special-consideration, complete the application form and submit at the Student Centre.
PLEASE NOTE that deferred exams are not available in Summer School units.

Acknowledging Sources of Information and the Business School Policy on Plagiarism

Student Services provides an online plagiarism portal that includes a definition of plagiarism and a link to FAQ www.studentservices.uwa.edu.au/ss/learning/online_services/plagiarism_portal

‘Turnitin' Originality Checking & Plagiarism Prevention is used in the Faculty to allow both educators and their students check written work for improper citation or misappropriated content. More information about 'Turnitin' can be found at http://turnitin.com/static/index.html

eBooks and open book exams

eBooks cannot be accessed at an examination. Please check your exam details and purchase a printed version of any book you would select to take into an open book exam.


It is important that the referencing of any sources used in your written work is done properly, if only to substantiate the points you are making in your assignment or project.  The Harvard style is the preferred and there are some notes for guidance which have been prepared by the library staff:  ‘Citing your Sources Harvard Style’ http://libguides.library.uwa.edu.au/harvard

The EndNote software package is a really good system for building up a database of references.  Not everyone will want to invest the time in using this system but you should consider it if you intend to build up resource materials or plan to undertake extensive research in a particular area.  The library staff have also developed a tutoring package: ‘A Quick Guide to Using EndNote’ which provides the basics for using EndNote with an essay http://libguides.library.uwa.edu.au/endnote

Last day to add a unit offered in a semester

The final date to add a unit is the end of week 2 of the semester.  For further information on important dates for 2017, refer to www.student.uwa.edu.au/course/dates/important


STUDYSmarter helps students get more out of their study by equipping you with additional skills needed at university. Explore the range of free on-campus and online services to help you develop academic communication, research, critical analysis, numeracy and study skills. http://www.student.uwa.edu.au/learning/studysmarter