UNIVERSITY OF PROFESSIONAL STUDIES, ACCRA
Faculty: Accounting & Finance
COURSE OUTLINE
VITAL INFORMATION
COURSE TITLE:
Auditing 2
COURSE CODE:
PBAC 405
DEPARTMENT:
Accounting
PROGRAMME:
B.Sc (Accting)
SEMESTER:
First
SESSION:
Mn/Evg/Wkd
LEVEL:
400
CREDIT HOURS:
3
ROOM:
LBC 503/502/406
TIME: 7am-3pm/7pm-9pm/10-1
LECTURER:
Peter Ackah
MOBILE:
E-mail:
peter.ackah@upsamail.edu.gh
024-4801841/027-7801841
ACADEMIC CALENDAR:
Date of First Lecture:
Date of Last Lecture:
Revision week:
End of Semester exams:
Semester ends:
07 Sept 2015
28 Nov 2015
30 Nov - 5 Dec 2015
7-19 Dec 2015
24 Dec 2015
Overall Course Aim(s):
 To equip students with the understanding and application of auditing principles and
techniques.
 It also aims at assisting students to know test of controls, substantive procedures, risk
assessment, audit review and reporting issues.
Teaching Methods
 Lectures, in-class short tests, homework
 Power point presentation
 Explanation on board
 Individual/Group Project
Student Responsibility:
1. Class attendance is mandatory and students must participate in all activities in class.
2. All assignments must be submitted on due dates.
Lecturer:Peter Ackah, 024-4801-841 & 027-4801-841
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Course Information
Course Description:
The course provides students with the in-depth understanding of an assurance engagement;
internal controls on various systems; verification of assets and liabilities; planning and risk
assessment issues; fraud and errors; auditing in computer environment, audit sampling, various
audit strategies, audit review and reporting framework.
Indicative Course Content
A) Assurance engagement/service
i. Definition
ii. Objective of assurance engagement
iii. Elements of assurance engagement
iv. Level of assurance
B) Internal Controls and Test of Controls
i. Revision of Internal Controls from Auditing 1
ii. Test of Controls

Sales system

Purchases system

Inventory system

Payroll system

Bank and cash system
C) Corroborative Substantive Procedures/Tests
i. Assets
ii. Liabilities
iii. Income
iv. Expenses
D) Audit strategy
i. Systems-based audit
ii. Risk-based audit
iii. ‘Top-down’ approach/business risk approach
iv. Balance sheet approach
v. Transaction cycle approach
vi. Directional testing
E) Planning and Risk assessment
i. Materiality
ii. Audit sampling
iii. Audit risk and business risk
iv. Analytical procedures
F) Fraud and errors
i. Errors
ii. Fraud triangle
iii. Corruption
iv. Bribery
v. Worldcom scandal
G) Computer Audit
i. Working papers
ii. Auditing around, through and with the computer
Lecturer:Peter Ackah, 024-4801-841 & 027-4801-841
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iii. Computer programmes, files and systems
iv. Internal control in computer environment
H) Audit Review
i. Related Parties
ii. Subsequent events
iii. Going concern
I) Reporting Framework
i. Management letter
ii. Audit procedures
iii. Elements of audit report
iv. Audit opinion

Unqualified

Modifications
Learning Outcomes
Learning Objectives
Upon the completion of this course, the student is expected to:
 Reasonably explain audit strategies and review issues
 Be able to determine the risks of material misstatements
 Be able to analyse verification of assets and liability elements
 Appreciate the need for internal controls and the tests of them
 Apply the types of audit reports
Resources & Reading List
Prescribed Textbooks & Slides
i. Title
Author
Priority
a. Audit and Assurance, ACCA F8
Study text (2013 or 2014)
BPP
b. Auditing, Theory and Practice
(The Auditing Compendium)
Kwame Boasiako
Omane-Antwi
Required
c. Internal & Audit Review
ICA
Optional
Required
ii. Soft copies of PowerPoint Slides from Lecturer’s Notes
Summative Assessment
Assessment
Grades will be awarded as follows:
End-of-semester examination 65%
Continuous assessment
35%
Grade
Aggregate
A
80% - 100%
B+
75% - 79%
B
70% - 74%
B65% - 69%
C+
60% - 64%
C
55% - 59%
Lecturer:Peter Ackah, 024-4801-841 & 027-4801-841
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C50% - 54%
D
45% - 49%
F
0 – 44%
Passing Requirements
 To pass the course, the student must obtain at least 50% of the aggregate marks.
 Must satisfy attendance requirement as stipulated by the University
Lecture Timetable
Period
Week 1
7-12/9/15
Assignment/Deadlines
Class exercise (2 marks)
Week 2
14-19/9/15
Topic/Lecture Content
Discussion of course outline,
learning contracts & lecture 1
(Assurance engagement)
Internal Controls and Test of
Controls
Week 3
21-26/9/15
Internal Controls and Test of
Controls
Test/Quiz 1 (4 marks)
Week 4
28-3/10/15
Week 5
5-19/10/15
Week 6
12-17/10/15
Week 7
19-24/10/15
Week 8
26-31/10/15
Corroborative Substantive
Procedures/Tests
Corroborative Substantive
Procedures/Tests
Audit strategy
Week 9
2-7/11/15
Week 10
9-14/11/15
Week 11
16-21/11/15
Week 12
23-28/11/13
Week 13
30-5/12/15
Fraud and errors
Computer Audit
Audit Review
Week 14
7-12/12/15
Semester exams
Week 15
14-19/12/15
Semester exams
Week 16
21-24/12/15
Semester ends
Class exercise/Homework
Class exercise/Homework
Term project work to be submitted on
2-7/11/15
Test/Quiz 2 (5 marks)
Planning and Risk assessment
Class exercise/Homework
Planning and Risk assessment
Class exercise/Homework
Deadline for submission of term project
work; group presentation (5 marks)
Test/Quiz 3 (4 marks)
Reporting Framework
Reporting Framework
Class exercise/Homework
IA (15 marks)
Revision week
Lecturer:Peter Ackah, 024-4801-841 & 027-4801-841
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