Learning Objectives

• The Principles of External Auditing unit develops an understanding of the legal and regulatory requirements relating to external audit engagements and how the external audit process meets those requirements. You should demonstrate a knowledge of internal controls within accounting systems and the different types of audit evidence. You should understand the role of materiality and risk assessment in the external audit process.
• The Auditing Financial Statements unit allows you to be able to contribute to the audit process by assessing the risk of misstatement in the financial statements and by selecting sufficient and appropriate methods of obtaining audit evidence in order to address the risks identified. You should be able to document an organisation’s internal control system, identify deficiencies, understand the implications of deficiencies and make recommendations for improvement. You should be able to
• draw conclusions which are consistent with the results of their work and recommend the nature of an audit opinion to be given in an audit report.

Learning Outcomes

• • Demonstrate an understanding of the legal and professional standards required for an external auditor.
• • Understand the organisation’s external auditing procedures.
• • Understand a range of auditing techniques and know which to use when planning audits on different aspects of the system.
• • Understand a range of audit documentation and recognise the appropriateness.
• • Be able to help plan an audit accurately identifying areas to be verified and any associated risks.
• • Undertake an audit under supervision.
• • Prepare draft reports for approval.