Audit and Assurance
How external audits are planned, performed and reported, with the ethics and evidence behind an audit opinion.
Subsections
Read the lessons, then take the check. The check pulls in anything you struggled with earlier in the unit.
The audit framework, ethics and engagement
Understand the purpose of audit, the engagement relationship and ethical decision-making.
- Assurance and the audit framework5 min
- Duties, liability and accepting an engagement5 min
- Ethics and independence in practice5 min
Planning and risk assessment
Translate risks into a practical plan supported by materiality and control evaluation.
- The audit risk model and planning5 min
- Materiality and evaluating misstatements5 min
- Internal control evaluation and tests of control5 min
Audit evidence, sampling, completion and reporting
Obtain relevant evidence and reach a supported reporting conclusion.
- Audit evidence and financial statement assertions5 min
- Sampling and evaluating audit results5 min
- Completion, going concern and the audit report5 min
Audit file casebook
Connect business risks, assertions, evidence and reporting decisions in one external audit file.
- From risk to audit procedure5 min
- Evidence and sampling review5 min
- Completion and reporting decisions5 min
Mixed unit review
Fifteen questions drawn from the whole unit, weighted towards the topics you have got wrong before. Nothing is flagged for revision right now.
Audit completion at Pennine Components Ltd
You are an audit senior completing the audit of a privately owned manufacturer. Use the documents and each step's additional facts. Enter numbers without currency signs or separators.
Timed mock exam
Open timed mockHow this unit is assessed
Computer based assessment, eight tasks, 100 marks, computer & human marked.
| Task | Focus | Marks |
|---|---|---|
| 1. Audit framework and ethics | Independence and duties | 16 |
| 2. Planning and risk | Risk model and materiality | 18 |
| 3. Internal control | Weaknesses and tests | 16 |
| 4. Audit evidence | Assertions and procedures | 20 |
| 5. Completion | Going concern and subsequent events | 14 |
| 6. Reporting | Opinions and modifications | 16 |