1 Module overview
1.1 Introduction, aims and summary of content
Welcome to the Auditing in Context Module. This is a core module for the BA (Hons) Accounting and Finance, which is an ACCA-accredited course. Students successfully completing the Level 5 and Level 6 Audit modules will be eligible to claim exemption from ACCA paper F8 Audit and Assurance
The module runs over one semester and this module study guide is designed to give you an understanding of the module, its aim and intended outcomes, how these outcomes can best be achieved and how they are assessed.
It will require hard work on your part but hopefully you will find it interesting and rewarding.
If having read this study guide, the course handbook and the University student handbook there is anything about the module or how it fits into the course which you do not understand then contact me sooner rather than later.
Aims of the module:
To enable students to demonstrate understanding of auditing principles and regulation in the context of business organizations in the UK and to apply audit procedures in a variety of simple practical situations.
What to expect from your tutor 1. Guidance and support Your tutor will provide you with academic guidance and will help you reflect on your academic progress so that you get the most out of your studies. Your tutor and student support team will also provide advice on the wider network of specialist student support services at the University to help you have the best possible experience during your studies.
2. Confidentiality Some information may be sensitive. Although it may be necessary to consult colleagues, University staff will treat such information as confidential and will limit disclosures to the minimum necessary.
3. Assessment marks and summative feedback Assessment marks and summative feedback will be given within 3 working weeks from the assessment submission deadline.
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What is expected of you as a tutee 1. Engagement You are expected to attend all the classes and seminars and be punctual. You will get the most out of your support by working in partnership with your tutor and student support team. This is a two-way process and by taking part in it fully you will gain more benefits from your experience at the University. You are therefore, expected to actively participate and engage in class activities and inform the tutor by e-mail when and if you are unable to attend any classes.
2. Preparation You are expected to read any preparation material / attempt any practice questions prior to lectures/seminars as per instructions given.
3. Professional conduct You are expected to behave professionally in classes and not cause any disruption that might affect other students’ learning. You are also expected to communicate with your tutors in a professional manner.
4. Attempt all assessments You are expected to attempt all assessments by the submission deadline unless there are extenuating circumstances (in which case please contact your Course Leader for extension request or mitigation claim prior to the assessment deadline).
Summary of Content:
• Nature Purpose and scope of auditing • Stages of an audit • Regulatory framework • Guide to professional ethics • Acceptance and initial procedures • Substantive testing and audit procedures • Evidence and working papers • Audit risk and business risks • Audit of assets and liabilities • True and Fair view, and materiality • Audit Reports • Auditor and the Companies Act
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1.2 Learning outcomes to be assessed
On completion of the module students should be able to: LO1. Demonstrate ability to identify audit approaches and procedures, which are appropriate to a range of business situations. LO2. Display detailed knowledge of the principles of internal control evaluation and the audit of statement of financial position areas. LO3. Critically review arguments and investigate contradictory evidence LO4. Critically review the significant that proposals for change in the regulation of auditing would have LO5. Identify the critical elements of auditing problems and specify the audit work required for their solution LO6. Communicate effectively in an appropriate format to shareholders and management.
Learning Outcomes Assessed: • LO1. Demonstrate ability to identify audit approaches and procedures, which are appropriate to a range of business situations. • LO2. Display detailed knowledge of the principles of internal control evaluation and the audit of statement of financial position areas. • LO3. Critically review arguments and investigate contradictory evidence.
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1. Mainbrace Ltd is a book publisher and retailer which trades online. The company was formed using a kit bought from a legal stationer, start-up capital was provided by the major shareholder. Bertie Bracewell’s father, another friend and co-owner Angela Main also provided some capital. Bertie’s father owns ten per cent of the company but doesn’t take part in any activities. When it was set-up Angela and Bertie didn’t want to get too tied up in paperwork so they put on the forms that Bertie’s father and Angela’s mother, who just signed the form because she was asked to, were the first directors. Since it started the company has done exceptionally well and, some 18 months after it started up it is now turning over approximately a million pounds per month, employs 60 people in three offices and has recently entered into a contract to buy a huge distribution warehouse valued at over £5m. The company has Angela and Bertie to run the business and make all the decisions between them, with occasional advice from the company accountant Ron Whistler. He produces monthly management accounts but the company has never had an audit and has never filed any accounts with the Registrar of Companies. Ron is getting a little concerned, particularly as he has just received an envelope from ‘Companies House’. He daren’t open it because he thinks it will be bad news.
Discuss (a) What provisions of the Companies Act are Bertie, Angela and Mainbrace not complying with? (12 Marks) (b) What should they do as a matter of urgency to correct the situation? (12 Marks) Total Marks Part 1 (24 Marks)
2. Cicero Ltd has now realised that it needs to improve its financial records and send some accounts to Companies House. So far it has managed with a series of spreadsheets devised by the company accountant, Eric Chopper, who is not a qualified accountant, which records incoming cash and cheques, payments and outstanding invoices. There are no ledgers and no double entry system. Eric does, however, reconcile his bank spreadsheets with the bank statements each month. He claims that all the company needs to know to run the business is how much money is in the bank. The business consists of four small supermarkets and two clothes shops. The company has never prepared audited accounts, even though it has traded for three years. Inventory count sheets are thrown away as they are only rough counts. Discuss: (c) What does Cicero Ltd need to do to rectify the situation? (16 marks) (d) Who is responsible for ensuring this is properly dealt with? (2 Marks) (e) By improving the position of Cicero Ltd, what advantages will this bring? (12 Marks) (f) Why might Eric Chopper not be keen to rectify the position? (6 Marks)
Total Marks Part 2 (36 Marks)
3. Both Mainbrace and Cicero have realized that things cannot go on as they are. They have approached audit firm Tickitt & Run who have agreed to act and are currently setting up a meeting with each company to explain the legal and audit situation.
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Discuss: (g) What will be the key points Tickitt & Run will have to explain about auditing standards? (7 Marks) (h) How will Financial Reporting Standards, broadly, affect these businesses? (16 Marks) (i) How would you go about explaining to entrepreneurial management the need for all auditing and accounting rules?(7 Marks)
Total Marks Part 3 (30 Marks)
4. 10 marks are allocated for presentation and referencing. Please make sure that your work is clearly presented without any grammatical mistakes and it has been spell checked. Harvard referencing should be followed throughout your assignment (10 Marks)
Total Marks for assignment (100 Marks)
.IN ALL QUESTIONS AND SCENARIOS YOU SHOULD CONSIDER COMPANIES ACT 2006 (PDF)
1. Word count: Maximum word count 1500 words
2. Pass mark and weighting of the assignment: To pass the assignment you need a mark of at least 40%. The assignment carries a 40 % weighting towards your final mark for the module. To pass the module you must achieve a mark of at least 35% in both assessments.
3. Hand in date: All assignments must be submitted on turnitin by the due date. Any late submissions will be subject to the penalties laid out below. Work handed in up to 5 days late will be awarded a maximum of 40 %. Work handed in after that will be given zero.
4. Student support: At the end of each seminar, there will be 10 minutes to discuss any problems or ambiguities in the assignment with the group.
5. Feedback: Each assignment will include written feedback. In addition there will be feedback session in class.
6. Plagiarism: The software checks assignments against other assignments as well as articles and internet sources so your assignment must not be too similar to other students’ assignments as well as not being too closely extracted from articles and on-line sources.
Important tip: You can submit drafts through turnitin and view the “originality report” which will indicate the similarity your assignment has with other sources.
(This report normally takes an hour or two to be generated and sometimes longer so you should plan to return at a later time or the next day and not expect instant feedback)
If the report indicates your draft is not sufficiently original you can redraft it and resubmit it and view the revised report. You can if necessary repeat this process as many times as you like up until the due date. You cannot submit through Turnitin after the due date
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For guidance on online submission of assignments, including how to submit and how to access online feedback, please refer to the UWL Blackboard Student-help page at: http://www.uwl.ac.uk/blackboardhelp
We have academic skills workshops almost every week. If you require English support please make an appointment with Katherine at Katherine.Smythe@uwl.ac.uk.
You may find some useful English writing tips as below: https://gallery.mailchimp.com/f1bb02dafd21cd343b4f8c117/files/EDITING_TIPS_FOR_BUSINESS_W RITING.pdf
Each assignment will include a written feedback via Blackboard. In addition, individual feedback will be given upon request or where I feel it is required.
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Marks are allocated accordingly to the requirements.
THE FOLLOWING GRADING CRITERIA ARE USED TO GRADE ASSIGNMENTS ON THE BA ACCOUNTING ASSIGNMENTS TO ENSURE CONSISTENCY ACROSS MODULES.
Extent of achievement of criteria (to be interpreted against level requirements)
0-9% Very poor or no knowledge or understanding demonstrated Unable to analyse data or meaningless analysis performed No ability to organize data Cannot evaluate data or evidence. Unable to identify relevance or significance. Unable to identify problem Very poor communicating in any format 1019% Poor understanding of basic concepts and terminology Almost totally unconvincing analysis or of very little relevance Handles information in a totally confusing manner Unreasoned and frequently incorrect evaluation of evidence. Wrong techniques used. Identifies problem but no meaningful method applied to solve Communicates poorly in all formats 2029% Unsatisfactory understanding of basic concepts and terminology Unclear analysis. Some relevance but not very meaningful. Some ability to collect and present data but no ability to use purposefully Poor reasoning and often faulty, evaluation of evidence. Failure to identify the relative significance of arguments. Some randomness in techniques used. Methods selected are inappropriate or wrongly applied to problem Unsatisfactory communication in any format 3039% Limited understanding of basic concepts and terminology Some relevant and meaningful analysis but inconsistent and incomplete Can present data and information but limited ability to use purposefully Appropriate techniques used but inadequate reasoning and identification of significance Problem identified but limited ability to select and apply methods for its solution May communicate reasonably clearly in one format but limited communication skills in other required formats 4049% Adequate understanding of basic concepts and terminology Analysis is sufficiently clear and meaningful and mostly relevant Can organise data and information in a manner which enables adequate (purposeful -level 1; creative –levels 2&3) use Appropriate techniques used and acceptable reasoning behind evaluation of evidence
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Able to identify and solve straightforward problems at a given level. Acceptable communication in all required formats
Good understanding of basic concepts and terminology Clear, meaningful and relevant analysis using appropriate methods Clear ability to organise and make (purposeful -level 1; creative –levels 2&3) use of data and information. Selects appropriate methods and gives clearly reasoned evaluation of evidence. Can choose and apply appropriate methods to solve standard problems Clear communication in a variety of formats
Very good understanding of basic concepts and terminology Analysis shows insight and is always relevant using most appropriate methods Ability to (categorise -level 1; reformat –level 2; transform –level 3) ideas and information towards a given purpose in a very clear and (useful-level 1) creative manner Uses most appropriate methods and evaluates in a logical and critical manner. Can identify and define a problem and solve using most appropriate method. Effective communication in a variety of formats
Excellent understanding of basic concepts and terminology Chooses and handles analytic tools excellently to provide very clear insight Ability to (categorise -level 1; reformat –level 2; transform –level 3) ideas and information towards a given purpose in a strongly (usefullevel 1) creative way Excellent use of evaluative tools. Highly logical reasoning and criticism. Confidently solves complex problems Can communicate and report at the level of a professional
Outstanding understanding of basic concepts and terminology Able to select most appropriate of any required method and produce superb analysis Ability to (categorise -level 1; reformat –level 2; transform –level 3) ideas and information towards a given purpose with outstanding (usefulness –level 1) creativity Selects most appropriate tools and can critically evaluate contradictory arguments in a highly reasoned way. Defines complex problem and selects most appropriate method for solution. Very effective communication in appropriate formats at a professional level
Near perfect understanding of basic concepts and terminology Always selects most appropriate method to produce superbly clear and insightful analysis Ability to (categorise -level 1; reformat –level 2; transform –level 3) ideas and information towards a given purpose with superb (usefulness –level 1) creativity Always selects most appropriate tools and can critically evaluate
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contradictory arguments in a highly reasoned and impartial way Always able to solve complex problems in most appropriate way. Superb communication skills always in most appropriate format
Under UWL’s policy, work handed in up to 7 days late will be awarded a maximum of 40%. Work handed in after that will be given to ZERO mark. You will have to seek the approval from course leader for extension of time for submission. Module leader and tutor has no authority to approve for any time extension.
Assessment 2 (Weighting 60%)
Examination – Closed book exam – 2 Hours plus 10 minutes reading time
Date of exam will be announced by the University Exams Unit
Learning Outcomes Assessed:
• LO1. Demonstrate ability to identify audit approaches and procedures, which are appropriate to a range of business situations.
• LO2. Display detailed knowledge of the principles of internal control evaluation and the audit of statement of financial position areas.
• LO3. Critically review arguments and investigate contradictory evidence.
• LO4. Critically review the significant that proposals for change in the regulation of auditing would have.
• LO5. Identify the critical elements of auditing problems and specify the audit work required for their solution
• LO6. Communicate effectively in an appropriate format to shareholders and management.
First 2:1 2:2 Fail 70% and above 60% – below 70% 40% – below 60% Below 40%
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2.3 Learning materials
The reading list for this module is available on Blackboard in the module area or by searching https://uwl.rl.talis.com/index.html. This shows real-time availability of books in the library and provides direct links to online resources, recommended by your lecturer. Remember to log into Blackboard daily to receive all the latest news and support available at your module sites! Subject guides (https://www.uwl.ac.uk/library/finding-and-using-information/subject-guides-libguides) are also available to help you find relevant information for assignments, with contact details of the Academic Support Librarian for your School.
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3 Things you need to know
Attendance is crucial for your success as a student. Over the years, it has become clear that there is a very clear link between students’ attendance levels and their module marks, so please make sure you give yourself the best possible chances for success through attending your classes, seminars and tutorials. You are expected to attend all forms of learning activity associated with your course of study regularly, and to engage in your course as required by the University’s Attendance and Engagement Monitoring Policy. Attendance is monitored using student-card swipe data so please always remember to ‘touch-in’ with your ID card for each class you attend. This may also affect your scholarships, so don’t forget to tap in! International students on a Tier-4 visa have additional requirements in relation to attendance, which are detailed in the Attendance and Engagement Monitoring Policy. All students should refer to the published Attendance and Engagement Monitoring Policy – https://www.uwl.ac.uk/students/current-students/policies-procedures-and-regulations – and if your course is accredited by a professional body, also to specific course requirements. 3.2 If things don’t go to plan
The University recognizes that there are times when you may encounter difficulties during your course of study and provisions are made to help you. In all cases, you should speak to your Personal Tutor/Module Leader and seek advice as soon as possible. If you think you need a little more time past the original deadline, you can approach your Module Leader for a 10-day extension initially. If an extension is not sufficient and your circumstances have prevented you from submitting on time then you may for instance be able to apply for mitigation. You are encouraged to seek advice from the Students’ Union Advice Service who can support you. Click the link and go to the ‘advice’ section: https://www.uwlsu.com/ Please refer to the University Academic Regulations for further guidance on extensions and mitigation: https://www.uwl.ac.uk/students/current-students/extensions-and-mitigating-circumstances If you fall below the pass mark or fail to submit to all elements or part of a module’s assessments, you will be required to do a resit, normally at the next opportunity. Resits do not involve re-enrolment and attendance at classes. Failure of a resit means you are required to retake the module. Retakes involve re-enrolment, attendance, payment of tuition fee and completion of all elements of the module, and the submission of all assessments. If your course is accredited by a Professional, Statutory and Regulatory Body (PSRB) certain rules may apply to you; please check this with your Course/Module Leader. Please refer to the University’s Academic Regulations for further guidance; see https://www.uwl.ac.uk/students/current-students/policies-procedures-and-regulations If your course is accredited by a professional body, the module requirements outlined in the above document will specify the elements of assessment that must be passed, those that must be taken, and those that are optional. The relevant Professional, Statutory and Regulatory Body (PSRB) rules also
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apply in such cases. You are reminded that the University applies penalties to students who commit an academic offence, in which case the Academic Offences Regulations will be used to deal with any cases of academic misconduct including examination offences, plagiarism and other means of cheating to obtain an advantage. If you have an issue or complaint about the module, you should speak to your Module Leader, Tutor or Course Leader informally in the first instance. Your Course Representative can also raise your concerns at Course Committees, which take place each semester. If you are unable to resolve it informally, you should refer to the Complaints Procedure which is outlined in the Student Handbook (https://www.uwl.ac.uk/students/current-students/student-handbook) and consult the Students’ Union about it. The University aims to ensure that issues are resolved informally as quickly as possible to have minimum impact on your studies.
3.3 Getting support for your studies
Throughout your course of study, you will have access to a wide variety of sources of support depending on your individual circumstances and needs. Your first point of call for getting general academic support is your Personal Tutor. As well as approaching your Module Leader with any questions specifically related to your module and your Course Leader with questions on your Course, do contact your Personal Tutor for academic advice in relation your studies and your academic development. Apart from the University-wide support framework, which encompasses the Module Leaders, Course Leader, the Subject Librarian and your Course Administrator, you will also have at your disposal the UWL Engagement Team. The Engagement Team offers Academic Skills Workshops throughout the year, helping you to develop skills relevant to your degree. Workshops include for instance Essay Planning and Writing; Critical Thinking; Reflective Writing; Group Work and Presentation Skills. Contact the Engagement Team at: Academic.Workshops@uwl.ac.uk Maths Support, English Language support and One-to-one academic support opportunities are also available. For information about all these services go to the Engagement Team’s website – https://www.uwl.ac.uk/students/support-services-for-students/engagement-team
3.4 Student support
In addition to the support listed in the previous section, there is also more help offered by UWL Student Support Services. These are located in The Street at St Mary’s Road, Ealing campus, but offer drop-in sessions at all UWL sites. They offer a wide range of support and advice services consisting of Student Advice, and Funding & Immigration advice; Careers; Counselling; Disability/Mental Health; Inter-faith Advisor; Placement & Employment; Volunteering; Student Welfare; and Scholarships and Bursaries. Contact Student Services (general) for more information at: Email: firstname.lastname@example.org Tel. 0208 231 2345.
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3.5 Module evaluation – have your say!
Towards the end of the module you will be invited to provide some anonymous feedback to the Module Leader through an online survey. This is your opportunity to give some direct feedback about the module through a series of questions and free text. Your constructive feedback will help the Module Leader and teaching team to understand the module experience from your perspective and helps inform the development of the module. At the end of the survey period, a response to the survey will be available on Blackboard so that you can see exactly how your voice has been heard.