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i
ACC 124: PUBLIC SECTOR AUDITING AND ASSURANCE SERVICES
Course title:
ACC 124: PUBLIC SECTOR AUDITING AND ASSURANCE
SERVICES I
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Course aim:
This course aims at enabling candidates make valuable judgment and
apply techniques in the analysis of matters relating to the
provision of audit and assurance services. Moreover it aims at
equipping candidates with knowledge of the auditing practices and
developments and to consider the special features of the role of audit
in the public sector and cooperatives
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Course expected
learning outcome(s):
At the end of the course, students should be able to:

Describe the nature, purpose and scope of audit and internal
review, including the role of internal audit in providing assurance
on risks management and on control framework of an
organization

Identify risks, describe procedures undertaken in the planning
process, plan work to meet the objectives of the audit or
review assignments and drafts the content of plans

Prepare audit program

Prepare reports for users within and external to the organization
including recommendations to enhance public services

Discuss and apply the requirements of relevant international
standards on auditing.
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Course status-core or
elective:
Core
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Credit rating:
10 credit points
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Total hours spent:
100
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Course Content:
1. NATURE, PURPOSE AND SCOPE OF THE AUDIT
 Audit as an assurance engagement
 Distinction between auditing and accounting
 Audit strategies
 Users of audited financial statements and auditor’s report
 Advantages and disadvantages of an audit
 Types and timing of audits
2. APPOINTMENT/RIGHTS/DUTIES OF AN AUDITOR
ACCORDING TO;
 Public Finance Act 2001
 Companies Ordinance Cap. 212
 Public Procurement Act 2011
 The Co-operative Societies Act 1991
3. PROFESSIONAL AND ETHICAL CONSIDERATIONS




Ethical principles
Fundamental principles, Threats and safeguards
Objectivity and Independence.
Meaning and importance of professional ethics, ethical
dilemmas
 NBAA and IFAC Codes of ethics
 Relevance of Professional ethics
 Compliance with the code of professional conduct
 Independence Rules of conduct and interpretations
 Disciplinary measures against non-compliance with the code
of
conduct.
4. AUDIT PLANNING
 Planning process
 Strategies and the audit plan
 Knowledge of the business
 Materiality and risk considerations.
 Documentation
5. INTERNAL CONTROLS
 Definition and objectives of internal control
 Types of internal controls
 The auditor and internal controls
 Internal control components
 Control as the duty of management
 Internal check
 Advantages and Limitation of internal control
 Internal control system (i.e. COSO framework)
 Ascertaining and Evaluating Internal Control System
6. AUDITORS’ LEGAL LIABILITY
 Overview of legal liability
 Auditor’s responsibility to Client
 Auditor’s Responsibility to third Parties
 Common law and statutory liabilities
 Liability to third parties other than beneficiaries.
 Events subsequent to the date of the Balance Sheet.
7. AUDITORS REPORT

Purpose of auditor’s report
 Contents and elements of auditor’s report
 Qualities of a good audit report
 Types of audit report
 Consequences of various audit reports
8. ASSURANCE ENGAGEMENTS AND PROSPECTIVE
FINANCIAL INFORMATION
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




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Considerations before acceptance of an engagement
Planning Assurance Engagements
Obtaining evidence
Levels of assurance (Reasonable or Limited)
Form and content of assurance Reports
Quality Control and quality Review
Risk based Approach
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Teaching and learning
activities:
Lectures, seminars, assignments and independent study
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Assessment Methods:
Test, Individual Assignment, Group Assignment and Final
examination
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Reading list :

IFAC (2014). Hand book of International auditing Assurance
and ethics pronouncement

ISAs and ISAEs

Messier,
W.(2013).Auditing
&
Assurance
dynamic
Accounting, 3rd ed. McGraw-Hill Higher Education.

Randal J et al (2013). Auditing and Assurance Services:An
Integrated Approach, 15 edition, Pearson

Willinghan, John: (1995).Auditing Concepts and Methods.
6th ed. New

York: McGraw-Hill
Mhilu, F,(2004). Advanced auditing and Investigations. 3rd
ed. NBAA.