Faculty of Management Technology

Management Technology Bachelor of

Science program

Auditing (CTRL 505)

A-Basic Information
Semester number Fifth semester
Semester type Winter semester
Study year Third Year
Course code CTRL 505
Academic year 2016-2017
Program name Bachelor of Management Technology
Department offering the course Accounting and Finance
Specialization Accounting
Type of course Compulsory
Number of sessions/ week 1 Lecture/ week , 1 Tutorial/ week
Weekly contact hours 2 hrs./week , 2 hrs./week
Student workload 150 hrs.
Credit points (ECTS) 5 CP
B- Professional Information
Aims:

This course will integrate the most important concepts of auditing as well as certain practical
aspects in a logical manner to assist students in understanding audit decision-making and
evidence accumulation. This is in addition to understanding the main aspects and ethics an
auditor should follow as well as the scope of auditor responsibility. The course familiarizes the
students with the important concepts, procedures and techniques, which the audit function is
based on. It also enables the students to appreciate the importance of auditing in modern business
societies; to a have a more in depth view on the phases of the audit process as well as it places a
good corner stone to help them to start their profession practically.

1 Academic Year 2016/ 2017

 Faculty of Management Technology

Management Technology Bachelor of

Science program

Intended Learning outcomes:

By the end of the course the student will be able to:

a- Knowledge & Understanding

a.1 Explain the importance of auditing in reducing information risk.

a.2 Identify the main types of auditors.
a.3 Describe the GAAS (general standards, standards of field work and reporting standards)
a.4 Describe the parts of the standard unqualified audit report.
a.5 Identify the types of audit reports than can be issued when an unqualified opinion is
a.6 State the auditor and management responsibility with respect to the financial statements.
a.7 Explain the auditor’s responsibility for discovering material misstatements.
a.8 Classify transactions and account balances into financial statement cycles approach to
segmenting the audit.
a.9 Outline the six management assertions about financial statements.
a.10 Identify and apply seven types of audit evidence used in auditing.
a.11 Identify the steps of applying materiality.
a.12 Describe the audit risk model components.
a.13 Describe the five components of the internal control system.
a.14 Explain the seven components of the control environment
a.15 Describe the five control activities.

b- Professional & Practical skills

b.1 Apply the auditing concepts in practice.

b.2 Use the generally accepted auditing standards in performing the audit process.
b.3Apply the auditing concepts related to audit reports into practice.
b.4 Use the materiality rule to determine which audit report can be issued.
b.5 Apply the four phases of financial statement audit.
b.6 Apply the management assertions on the financial statements.
b.7 Point out the appropriate type of evidence to be used in a certain situation.
b.8 Interpret the feasibility of using each type of evidence according to its cost, degree of
objectivity and availability.
b.9 Assess the preliminary judgment about materiality.
b.10 Allocate the preliminary judgment about materiality to the different audit segments.
b.11 Compute the estimated misstatement for each account.
b.12 Compute the value of combined misstatement for each account.
b.13 Relate the different types of audit risk to the sample size being selected.
b.14 Calculate the planned detection risk using the audit risk model.
b.15 Compute the amount of evidence to be accumulated per segment based on the planned

2 Academic Year 2016/ 2017

 Faculty of Management Technology

Management Technology Bachelor of

Science program

c- Intellectual skills

c.1 Relate the auditing concepts to auditing techniques.

c.2 Differentiate between the three types of GAAS.
c.3 Compare the GAAS to the Egyptian auditing standards.
c.4 Determine the seven parts required to issue audit report.
c.5 Distinguish among the three management categories of management assertions about
financial statements.
c.6 Relate the six general transaction-related audit objectives to management assertions for
classes of transactions.
c.7 Relate the nine general balance-related audit objectives to management assertions for
account balances.
c.8 Differentiate between the different types of audit evidence.
c.9 Assess the benefits and costs associated with each type of evidence.
c.10 Differentiate between the preliminary judgment about materiality and the tolerable
misstatements.
c.11 Determine the different factors affecting the auditor’s judgment about materiality.
c.12 Recognize relevant type of audit decision based on the assessed degree of materiality.
c.13 Analyze the factors affecting the acceptable audit risk.
c.14 Analyze the factors affecting the inherent risk.
c.15 Determine how to make risk assessment.

d- General & Transferable skills

d.1 Communicate clearly by verbal means through class discussion of the assignment in the
tutorial.
d.2 Practice independent learning needed for continuous professional development.
d.3 Able to practice independent learning based on continuous searching and reading from
textbooks and the internet.
d.4 Demonstrate critical thinking, problem- solving & decision- making abilities.
d.5 Able to demonstrate problem-solving abilities in solving the assignments.
d.6 Retrieve & evaluate information from different sources to improve professional
competencies.

3 Academic Year 2016/ 2017

 Faculty of Management Technology

Management Technology Bachelor of

Science program

Content
No. of Teaching Hours

Topic Lecture Tutorial

The Demand for Audit and Other Assurance services 2 -
The Demand for Audit and Other Assurance services 2 2
The Demand for Audit and Other Assurance services and 2 2
Generally Accepted Auditing Standards (GAAS)
Audit Reports 2 2
Audit Reports and Materiality 2 2
Audit Responsibilities and Objectives I 2 2
Audit Responsibilities and Objectives II 2 2
Audit Responsibilities and Objectives III 2 2
Audit Evidence Types 2 2
Materiality and Risk I 2 2
Materiality and Risk II 2 2
Audits of Internal Control and Control Risk 2 2

Learning and teaching methods

Lectures, assignments and tutorials.

Facilities required for teaching & learning

 Lecture hall equipped with microphone, computer, beamer, white board and markers.
 Availability of lectures presentations on the GUC intranet that are used for data show and
explanation to students during lecture sessions.
 Essential textbooks

Assessment
Student assessment methods Assessment weighting
Assignments 10%
Quizzes 10%
Class work 5%
Mid-term 30%
Final 45%

4 Academic Year 2016/ 2017

 Faculty of Management Technology

Management Technology Bachelor of

Science program

References

Essential textbooks

 Arens, Alvin, A. Randal, J. Elder and M. Beasley; Auditing and Assurance services –
an Integrated Approach, Prentice-Hall International, Fifteenth Edition, 2014.
ISBN:10:0-273-79000-5

Recommended textbooks

 Auditing Cases: An Interactive Learning Approach (5th Edition) by Mark S. Beasley, Frank A.
Buckless, Steven M.Glover and Douglas F. Prawitt:
ISBN-13: 978-0-13-256723-7
Relevant websites

 www.AICPA.org Site of the American Institute of Certified Public Accountants

 www.FASB.org Site of the Financial Accounting standards Board
 www.PCAOB.org Site of the Public Company Accounting Oversight Board

C- Administrative Information
Course Coordinator Prof. Dr. Hassan Ouda

Head of the department

Prof. Dr. Ehab Kamel Abou-Elkheir

5 Academic Year 2016/ 2017