Auditing 2 ACNE 4318

Course description:

This course applies the concepts from Audit I to the audit of sales, cash receipts, and the related income statement and balance sheet accounts. The appropriate audit procedures for accounts in the sales and collection cycle are related to internal control and audit objectives for tests of controls, substantive tests of transactions, and tests of details of balances in the context of both the audit of financial statements and audit of internal control over financial reporting. Students also learn to apply audit sampling to the audit of sales, cash receipts, and accounts receivable. 
Finally performing additional tests to address presentation and disclosure objectives, summarizing all audit tests, reviewing audit documentation, obtaining management representations in an integrated audit of financial statements and internal control, communicating with those charged with governance, and all other aspects of completing an audit.

Course Aims:

  • Learning how to audit accounting application like, sales and collections, acquisition and payment cycle.
  • How to audit related accounts like account receivables, account payables, cash balances.
  • Distinguish between test of controls, test of transactions, and test of accounts balances.
  • Applying statistical sampling for audit tests.
  • How to complete the audit process and test for contingent liabilities and commitments
  • Review for subsequent events.
  • How to issue the audit report.


Course outcomes:

At the completion of the subject, students should be able to: 
  • Make tests for internal controls.
  • Make tests of transactions, and tests of account balances for accounting application.
  • Use statistical techniques in auditing tests.
  • Consider contingent liabilities and commitments before issuing the audit report.
  • Understand the effect of subsequent events and its effect on the auditor report.
  • Issue an audit report according to GAAS.