FACULTY: ECONOMICS AND MANAGEMENT SCIENCES

DEPARTMENT: ACCOUNTING, AUDITING AND INCOME TAX

COURSE OUTLINE AND INFORMATION GUIDE

MODULE: C3611AA
MODULE TITLE: AUDITING 1A (Full time)
ACADEMIC YEAR: 2025

LECTURER: Brenda Dhlamini

OFFICE LOCATION: Room X255, X Block
CONTACT NO.: 061-206 3986
E-MAIL: [email protected]

CONSULTATION HOURS:

Consultation times will be displayed outside the door/(advised by word of mouth) of Room X255.
Should you require a specific appointment outside of consultation periods, please arrange in advance with the lecturer.

COURSE OUTCOMES
The objective of this module is to introduce the student to the basic audit theory and audit practices.
This includes auditing concepts and approaches as well as general accepted auditing standards.

RULES and REGULATIONS

Pre-requisite
A pass (50%) in C3511FF and C3512FF.
It is therefore assumed that students have a thorough understanding of and are proficient in all topics covered in
C3611AA and C3611AA and deemed to be embedded knowledge required by students.

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Attendance and Punctuality
Students are expected to attend all lecturers and tutorials. Latecomers may not be allowed into class after 15 minutes of
starting time.
Attendance registers will be strictly maintained as a student must attend 80% of all lecturers and all practical tutorials if
any to be admitted for the final exam.

Assignments
Assignments must be submitted on time and necessary submission and submission instruction will be given for each
tutorial.

Mark queries
Marks may be queried using a mark query form obtainable for the lecturer.

Work ethics
It is expected that students realize that academic success is 80% dependent upon own effort.
Also, honesty is paramount.

TEACHING STRATEGY:
This course is planned for 4 contact hours per week for 14 weeks to a total of 56 lecture contact hours. It should be
acknowledged that learning time should be much more and be divided as follows:
Contact with lecturer/ tutor 56 hours
Research for Assignments and Presentations 14 hours
Test and examinations 8 hours
Self-study 82 hours
Total learning time 160 hours
Self-study includes pre-requisite reading for lectures, homework and revision of work covered during lecturers.

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ASSESSMENT:
Students will only be promoted based on continuous work done throughout the semester as well as performance in
semester tests.
The CA mark will be weighted and calculated as follows:

% of CA
Group Assignment 25%
Term test 1 25%
Term test 2 25%
Individual Assignment 25%
Total % of CA 100%

A student will write at least a minimum of two semester tests and a special/sick test at the end of the semester. A
candidate must obtain a minimum of 40% average in his/her CA mark to be able to sit for the exam.
Continuous assessment (CA) mark contributes 50% to your final mark and the final exam, which consists of a three-hour
exam paper, will contribute 50%.
Students are advised to make sure that their CA Marks are correct before the CA submission deadline. Dates are TBA by
the lecturer.

MISSING A TEST
For students who miss either test 1 or 2, a special/sick test will be written during the semester. Any student who misses all
assessments will be disqualified from writing the exams. All students who miss a test are required to complete a form and
attach relevant supporting documents and submit it within 5 days after the respective test was written. The form is
attached at the end of this course outline.

PRESCIBED BOOK
Primary book - Jackson & Stent 13th Edition. AUDITING NOTES (“AN”) and
Graded Questions on Auditing 2023, Author: Gowar & Jackson

RECOMMENDED BOOK
Dynamic Auditing – A students’ edition 2023, Author: Marx, van der Watt, Bourne, Hamel

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COURSE OUTLINE
WEEK TOPIC CHAPTE
BEGINNIN R
G
1-2 CHAPTER 1 – INTRODUCTION TO AUDITING Chapter 1

THEORY AND PHILOSOPHY OF AUDITING

 What is an auditor?
 Why is there a need for auditors?
 Levels of Assurance
 Public interest and public interest scores
 Assurance and non-assurance engagements
 Auditing postulates

2 THE ACCOUNTING PROFESSION Chapter 1

 The nature of professional status
 Accounting Bodies in South Africa
 Pronouncements which regulate the profession

THE FINANCIAL STATEMENT AUDIT ENGAGEMENT

 Introduction
 A model of the independent audit of the financial statements of a company
 The roles of the various parties
 The role of the Companies Act 2008
 The role of the Auditing Profession Act 2005
 The role of the International Standards on Auditing (ISAs)
 The role of assertions

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WEEK TOPIC CHAPTE
BEGINNIN R
G
2-3 CHAPTER 2 - PROFESSIONAL CONDUCT Chapter 2
 THE SAICA, IRBA and IFAC (Namibia) Codes of Professional Conduct
 General guidance: Ethics and Professional Conduct
 Public Interest

THE SAICA CODE OF PROFESSIONAL CONDUCT (ET)

 Structure of the Code

GENERAL APPLICATION OF THE CODE

 Basis of the Code – The Conceptual framework approach
 Understanding the conceptual framework approach
 The Fundamental Principles
 Threats
 Safeguards

3-4 TOPIC Chapter 2

CHAPTER 7 - IMPORTANT ELEMENTS OF THE AUDIT PROCESS

UNDERSTANDING AUDIT RISK

 Introduction
 The inherent limitations of an audit
 The link between audit risk and the audit process
 The components of audit risk
 Inherent Risk

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  Control Risk
 Detection risk
 Relationships between different risks

UNDERSTANDING THE ENTITY AND ITS ENVIRONMENT

Introduction

Risk assessment procedures and related activities

 Client acceptance and continuance procedures

 Previous experience with the entity
 Inquiries of management
 Observation
 Inspection
 Analytical procedures
 Discussion among audit team

The entity and its environment

 Industry, regulatory and other external factors

 The nature of the entity
 The entity’s selection of accounting policies
 The entity’s objectives and strategies and related business risks
 Measurement and review of the entity’s financial performance

WEEK TOPIC CHAPTE

BEGINNIN R
G
4-5 TOPIC Not in
CHAPTER 7 - IMPORTANT ELEMENTS OF THE AUDIT PROCESS book

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 The entity’s internal control

 Control environment
 The entity’s risk assessment process
 The information system
 Control activities
 Monitoring of controls

Significant risks

The concept of materiality

 Introduction
 The nature of materiality
 Planning materiality and performance materiality
 Materiality at the evaluating stage (Final materiality)
 Conclusion

The auditor’s responsibilities relating to fraud in an audit of financial statements

 Introduction
 Auditor’s objective
 Responsibility of management and those charged with governance
 Responsibilities of the auditor
 Responses to the risk of maternal misstatement due to fraud
 Fraud risk factors
 Communication with management, those charged with governance and others
Fraud and retention of clients

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 Test 1 – Review relevant Study Weeks TEST 1

6-7 CHAPTER 5 – GENERAL PRINCIPLES OF AUDITING Chapter 5

INTERNAL CONTROL
 Introduction
 Limitations of internal control
 Definition of internal control
 Components of internal control
 Internal control in smaller entities
 The external auditor’s interest in internal control
7-8 AUDIT EVIDENCE Chapter 5
o Introduction
o Sufficient appropriate audit evidence
o Financial statement assertions

THE AUDITORS’S TOOLBOX

o Introduction
o Why perform tests of controls?
o Why perform substantive procedures?
o Vouching and verifying

3-4 Test 2 – Review relevant Study Weeks TEST 2

WEEK BEGINNING TOPIC CHAPTER

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7-8 CHAPTER 6 – AN OVERVIEW OF THE AUDIT PROCESS Chapter 6

PRELIMINARY ENGAGEMENT ACTIVITIES

 Part 1 Prospective clients
 Part 2 Continuance with an existing client
 Part 3 Compliance with standards
 Part 4 Procedures to gather “preliminary engagement” information
 Part 5 Establishing an understanding of the terms of the engagement
April Easter holiday
7-8 PLANNING Chapter 6

 Part 1 Introduction
 Part 2 The overall audit strategy
 Part 3 The audit plan itself
 Part 4 Materiality
 Part 5 Planning and conducting risk assessment procedures
 Part 6 Planning further audit procedures based on the risk assessment

Review Study Weeks 5-8 TEST 3

28 April-06 May RESPONDING TO ASESSED RISK Chapter 6

2025
 Part 1 Overall response at financial statement level
 Part 2 Audit procedures to respond to the assessed risk of material
misstatement at the assertion level (further procedures)
 Part 3 Other audit procedures carried out to satisfy the requirements of the
ISA’s

WEEK BEGINNING TOPIC CHAPTER

8-9 Sick test – Review ALL course content - ??????? SICK TEST
9-10 EVALUATING, CONCLUDING AND REPORTING Chapter 6

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  Part 1 Sufficient, appropriate evidence
 Part 2 Uncorrected misstatements
 Part 3 Applicable financial reporting standards
 Part 4 Events occurring after the balance sheet date

9-10 CHAPTER 16 – RELIANCE ON OTHER PARTIES

 Introduction
ISA 600 – SPECIAL CONSIDERATIONS – AUDITS OF GROUP FINANCIAL
STATEMENTS (INCLUDING THE WORK OF COMPONENT AUDITORS)

ISA 610 - USING THE WORK OF INTERNAL AUDITORS

ISA 620 – USING THE WORK OF AN AUDITOR’S EXPERT

11-12 CHAPTER 17 - SUNDRY TOPICS

INITIAL AUDIT ENGAGEMENTS – OPENING BALANCES (IAS 510)

 Introduction
 Auditor’s objective
 Procedures to be adopted
 Reporting considerations

QUALITY CONTROL FOR AN AUDIT OF FINANCIAL STATEMENTS

 Introduction
 Leadership responsibility
 Ethical requirements

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  Independence
 Acceptance and continuance of client relationships
 Assignment of engagement teams
 Engagement performance
 Consultation and differences of opinion
 Engagement quality control review
 Monitoring
 Conclusion

To explain the flow & link of all that the students have learned so far.

GOING CONCERN (ISA 570)

SUBSEQUENT EVENTS (ISA 560)

 Introduction
 Applicable statements
 Definitions
 Types of subsequent events
 Events occurring between the date of the financial statements and the date of
the auditor’s report
 Facts which become known to the auditor after the date of the auditor’s report
but before the date the financial statements are issued
 Facts which become known to the auditor after the financial statements have
been issued
 Action to prevent further reliance on the audit report

AUDIT SAMPLING

DOCUMENTATION (ISA 230 & ISQC1)

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  Compliance with standards
 General points and basic requirements

SPECIFIC TYPES OF AUDIT EVIDENCE

 Bank confirmations

 Written representations (ISA 580)

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 FACULTY: ECONOMICS AND MANAGEMENT SCIENCES
DEPARTMENT: ACCOUNTING, AUDITING AND INCOME TAX
MODULE: 3611AA
MODULE TITLE: AUDITING 1A (Full time)

Kindly fill in this form and submit within 5 days of missing the test:

NAME, SURNAME
STUDENT NUMBER
CONTACT DETAILS
E-MAIL ADRESS

REASONS FOR MISSING THE TEST: ONLY TICK () THE APPROPRIATE BOX

Sick (Hospitalised)
Sick (not hospitalised)
Death in Family
Other (please specify)
(Kindly attach a valid supporting document/s with this form)

……………………………………… ………………………………

Signature Date

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