AUDIT CLASS TEST

AUDITING UNIT 1
Auditing is there a need? Assurance engagements and Internal Audit

UNIT 2
Auditors’ liability
Corporate Governance, auditors’ duties, error and fraud, case law on audit liability, Limiting auditors’ liability.

UNIT 3
Audit regulation
Company law, Auditing Standards. Professional ethics, Ethical standards.
Chap 4 - not covered in class – students to read

UNIT 4

Audit evidence
Audit objectives. Business Risk and Audit Risk model. Statistical sampling. Materiality. Importance of working papers.
Chap 7 - not covered in class – students to read

AUDITING - TUTORIAL 1
Research
What Are The Audit Requirements Of Small Companies?
The CA 2006 section 477:

To be exempted from audit in respect a financial year beginning on or after 6 April 2008 a company needs to meet all of the following conditions:

A company will therefore need to qualify as a small company in accordance to the criteria stated in the paragraph above before it can test its turnover and balance sheet conditions to obtain audit exemption. It is important to state that if the company fails even only one of the conditions it will not be able to be exempted from audit

 “At present, European Union rules mean that to classify as “small” for accounting purposes, a company must comply with two out of three criteria: having no more than 50 employees, a balance sheet of no more than £3.26m and turnover of no more than £6.5m

 The change to audit exemptions and the accounting framework would apply for accounting years ending on or after October 1 2012.