COMM 455 - Principles of Auditing

This course introduces students to the fundamental concepts and principles used by the Canadian auditing profession. As the majority of students taking the course intend to pursue a professional accounting designation, it provides them with a sound foundation upon which to enter their professional training. The course makes extensive use of the CICA Handbook and case studies.

Learning objectives

Upon successful completion of this course, students will have the knowledge and skills to:

• identify, describe and recommend the type of engagements that an accountant/auditor could provide to clients.
• identify and discuss whether the actions contemplated or completed by an auditor comply with the profession’s Rules of Professional Conduct.
• analyze the threats to an auditor’s independence.
• identify an auditor’s potential sources of legal liability.
• address and discuss the factors which need to be considered in 1) accepting an audit client and 2) planning the audit engagement.
• describe and explain the three important phases of the audit - Risk Assessment, Risk Response and Reporting.
• discuss the auditor’s responsibilities for the detection of fraud and identify the fraud risk factors in an engagement.
• identify the components of the Audit Risk Model, complete an assessment of each component and correlate this assessment to the amount of evidence required on an audit.
• discuss whether “sufficient appropriate audit evidence” has been obtained.
• determine and discuss the appropriate materiality level for a given audit engagement.
• explain the difference between management and auditor responsibilities with respect to the financial statements.
• perform analytical procedures on a set of financial statements and identify and assess areas of potential material misstatement.
• understand and link management assertions to the audit program developed by the auditor in response to the assessed risks of material misstatements.
• explain the primary objective of internal controls and assess the adequacy of controls in a simple sales and disbursement cycle.
• perform the audit procedures required to be completed during the auditor’s observation of an inventory count.
• prepare the appropriate Independent Auditor’s Report for a given audit engagement.

Prerequisite: COMM 353.

Corequisite: COMM 450.