Module details for Auditing


An introduction to audit theory and audit practice to fulfil the expectation and obligations of an audit practitioner.


The aim of this Module is to introduce the student to theory and practices of auditing; and the regulatory requirements; to develop the student's application of practice and professional obligations to practical problems.

Learning Outcomes

By the end of this module the student should be able to:

1.  Critically appraise the social and economic need for auditing and the theoretical, statutory and professional framework within which the external (and internal) auditor operates. Understand and appreciate contemporary issues which impact the audit profession and the business community.

2.  Critically, evaluate risk-based audit strategies, and assess the nature and scope of audit objectives and audit evidence.

Indicative Content

1 Audit Theory

The postulates of auditing and the enduring principles of auditing. Agency theory and auditing. The nature and value (i.e. reliability and usefulness) of key accounting information. Recognition of both Internal and External users of auditor outputs/services.

2 Legal and professional considerations

Rules of professional conduct (independence etc.). Quality control and process monitoring of an audit engagement. Companies Acts - Legal status of an audit; auditor appointment, resignation and removal; auditor rights, duties and remuneration; professional responsibility and liability. An appreciation of the legislation applicable to Data Protection, Money Laundering, Proceeds of Crime and Fraud.

3 Current issues

The auditor's responsibility for discovering fraud and error; assessing Corporate Governance; Going Concern; Limiting the auditor's liability. Non-audit engagements undertaken by the auditor. Quality control and monitoring of services with regard to the “Expectation Gap”

4 Risk based auditing

Business risk and its impact on dimensions of audit risk and analytical procedures; Understanding the client’s industry and the audit planning model to identify areas of risk.

5 Audit objectives

Testing controls; Balance sheet assertions; Types of audit tests; Types of evidence to support and challenge the client’s assertions; and the Sufficiency and Reliability of evidence required.

6 The audit process - 1

Specific balance sheet items and related profit and loss account cycles. Audit completion procedures - events after the balance sheet date, contingencies, management representations and the overall review of financial statements.

7 The audit process - 2

Characteristics of information systems and control over systems reliablity. Use of the computer as an audit tool. Applying Computer Assisted Audit Techniques (CAATs). Introduction to group and specialised audits (e.g. Financial services).

8 Reporting and completion

Reports to management. Statutory audit reports. Special reports.

Teaching and Learning Work Loads

Teaching and Learning Method Hours
Lecture 28
Tutorial/Seminar 10
Practical Activity 14
Assessment 80
Independent 68
Total 200

Guidance notes

SCQF Level - The Scottish Credit and Qualifications Framework provides an indication of the complexity of award qualifications and associated learning and operates on an ascending numeric scale from Levels 1-12 with SCQF Level 10 equating to a Scottish undergraduate Honours degree.

Credit Value – The total value of SCQF credits for the module. 20 credits are the equivalent of 10 ECTS credits. A full-time student should normally register for 60 SCQF credits per semester.


We make every effort to ensure that the information on our website is accurate but it is possible that some changes may occur prior to the academic year of entry. The modules listed in this catalogue are offered subject to availability during academic year 2021/22 , and may be subject to change for future years.