ROYAL UNIVERSITY OF BHUTAN

Gedu College of Business Studies

ACT307 Audit & Assurance
Semester Work Plan
February- June 2020

(A) General Information

Sherab Dorji
Facilitator sherabdorji.gcbs@rub.edu.bt
Contact No: 17645315
Room No: 109
Programme Bachelor of Commerce (Accounting Major)
Level VI semester
Credit 12 (120 Hours)
Previous knowledge required ACT101 Accounting Principles

(B) Module aim:

The module ensures that the student acquire the concepts and technical skills of performing financial statements audit in the context of the
existing framework and standards on auditing. As such, the student will gain comprehensive knowledge of the complete cycle of financial
statement audit from planning and assessing audit risk through designing an appropriate audit response to the assessed risk of material
misstatements and finalising audit, and issue of an appropriate audit report. The module also aims at improving generic skills of communication
and time management of students through writing assignments and organising their learning activities.

(C) Module Learning Outcomes:

On successful completion of the module, student will be able to:

1. Explain the concept of audit and assurance and the functions of audit;
2. Differentiate between internal and external audit;
3. Discuss audit procedures of obtaining an understanding of the entity and its environment including control systems to assess risk of
material misstatements;
4. Discuss materiality concept and apply this in audit planning, performance and reporting;
5. Assess effectiveness of internal control system of an entity through test of control, and communicate such control deficiencies;

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 6. Develop a comprehensive audit plan for an audit of a financial statements covering RMM of various assertions, and perform appropriate
audit procedures such as test of control, substantive analytical procedures and detail checks;
7. Identify and assess the work and evidence obtained by auditor’s experts and company’s internal auditors to meet the objectives of audit
engagements;
8. Explain how consideration of subsequent events and the going concern principle can inform the conclusions from audit work and are
reflected in different types of audit report, written representations and the final review and report.
9. Describe the nature of audit trails in computerized accounting system and how that will differ from the manual accounting system;
10. Discuss audit completion checklist and finalise audit; and
11. Recommend appropriate audit report based on the auditor’s conclusion about the true and fair view of the financial statements.

(D)Learning and Teaching:

The module will be delivered through interactive lecture, one-one tutorial session, case discussion and guided readings. Student will be
required to read the technical articles and book chapters identified for each unit of module descriptor. All specified readings of technical articles
and book chapters must be completed before attending the class.
The module will also enable learning through chat and class forum on google or VLE system using the following group ID:
ACT307A@spring2020
ACT307B@spring2020
ACT307C@spring2020

Approach Hours Per Week Total Credit Hours

Lecture & class discussion 3 45

Tutorial and group work 2 30

Independent Study and 4 45

individual assignment

Total 0

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(E) Assessments:

Assessment Approach:
A. Written assignments: Portion of Final Marks: 10 %

Each student will complete one written assignment assessed for 20 points, on topics related with audit management on different hypothetical
scenarios. The ssignment shall be within the word limits of 1100-1500 words. The exact topics will be informed during the session. (The 20
points will be converted to 10% later).
4% Content, identifying the problems areas
4% Analysis of problems and suggesting solutions using appropriate auditing principles and standards.
2% Presentation, writing style- use of proper academic style

B. Case Study and presentation: Portion of Final Marks: 30 %

Students will be assigned two case studies, each of 10% and 20 % marks, in a group of 4. They will analyse the case, identify issues, propose
relevant point for discussion with the relevant auditing principles and standards, and provide plausible solutions or recommendations in a paper
of 1000 words each. The group will make a presentation (10%) for the second case study of 15 minutes, with 5 min Q&A.
2% Group mark: coordination of presentation and distribution of work among the group members.
6% Analysis of case material (identify issues, discuss with relevant principles and standards and propose plausible solutions and
recommendations)
2% Logical presentation, writing style
4% Presentation Group mark: coordination and distribution of work among the group member.
6% Presentation Individual mark will be assessed on following criteria:
2% Subject knowledge and ability to answer Q& A
2% Smartness, body language, pronunciation, audibility
2% Organization of presentation

C. Class participation and preparedness: Portion of Final Mark: 10% (assignment presentation, Q and A session (group/individual) is
clubbed with this)
Each student will be assessed based on their active participation and preparedness in the class by contributing to the class discussions by
answering questions, stating their opinions, and solving in class exercises during the sessions including class presentations. This will be
assessed based on following criteria
10% Contribution to the class discussion and listening to and responding logically to the viewpoints of others including presentations.

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D. Midterm Examination: Portion of Final Mark: 20%

Students will take a written exam of 2 hours duration covering topics up to the mid-point of the semester.

E. Semester-End Examination: Portion of Final Marks: 30%

The module will have a semester-end exam for 2 hours covering the entire syllabus. The question will be divided into two parts – Part A
(carrying 40% of the exam weightage) will be mostly of short answer including objective questions. Part-B (carrying almost 60% of the exam
weightage) will be mostly of essay type or an extended response to the given question. This part of the question requires students to apply,
analyse, and evaluate or construct knowledge and skills. Cases will also be used to test the levels of knowledge.

Student must score at least 50% to pass the module. In order to be eligible for RA exam, or pass the module, student must achieve minimum
40% in each component of the continuous assessment (CA) and the semester end examination.
Student must complete all forms of assessments on time and no consideration will be given for other than the reasons under extenuating
circumstance.
Attendance of 100 percent is expected for all students. Only under extenuating circumstance that a student’s attendance may be considered
less than 100 percent but at least 90 percent.

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(F) Weekly lesson plan

Week Unit Topic/Area of knowledge covered Readings/preparations required Assessments

W1-W2 Unit-I: 1st assignment
[Feb 12- Introduction 1.1. Concept of audit and other assurance 1. ISA 200 released: 3rd
Feb 21] to auditing engagements 2. William C. Boyton and Raymond N. week of
and 1.2. Regulatory framework of audit Johnson, Modern Auditing- February
assurance 1.3. Types of audit and scope of audit Assurance Services and The
1.4. Audit objectives Integrity of Financial Reporting (8th
1.5. Corporate governance and audit mechanism Ed), John Wiley & Sons
1.6. Internal audit and external audit (Chapter 1- Chapter 4
1.7. Auditing standards 3. Graham W. Cosserat and Neil
Roda, Modern Auditing (3rd Ed),
1.8. Auditors liability
John Wiley & Sons
1.9. Independence and ethical requirements for
(Chapter1- Chapter4)
auditors
4. Companies Act of Bhutan 2016
1.10. Statutory audit requirements of the 5. Annual Reports of Bhutanese
Companies Act Companies

(G) Essential texts:

1. Leung, P., Coram, P. , Cooper, B.J. & Richardson, P. (2017). Modern Auditing and Assurance Services, (6th ed.). India, Wiley.
2. Graham W. Cosserat and Neil Roda, Modern Auditing (3rd Ed), John Wiley & Sons
3. William C. Boyton and Raymond N. Johnson, Modern Auditing-Assurance Services and The Integrity of Financial Reporting (8th Ed),
John Wiley & Sons
4. Link to other sites:
a) www.raa.gov.bt
b) www.ifrs.org
c) www.ifac.org
d) www.iasplus.com/resources

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