Auditing, Governance, and Investor Assurance

Course Director: Henrik Nilsson

Purpose

The purpose of the course is to convey knowledge on the usefulness and limitations of auditing and assurance services from a capital markets perspective. Special attention will be given to understanding business and other risks, and the related risk management, as this is the basis for the auditor´s risk analysis (risk for material misstatements of financial statements).

Content

Auditing aims to verify that the financial statements give a true and fair view and that business controls affecting financial statements are performed satisfactorily. This is important both to external stakeholders (investors, creditors etc.) and from an internal company perspective. The auditor perspective will therefore add to students' prior knowledge of management control and financial reporting. Issues that will be discussed include:

• The role of the auditor within the corporate governance framework
• Why financial statement auditing and other assurance engagements?
• The financial statement auditing environment
• Business risks, managements responses and auditor´s risk assessment.
• The concept of Materiality
• Audit planning
• Internal control in financial reporting
• Auditing process and reporting
• Assurance engagements and non-assurance engagements (e.g. forensic accounting)

Format & Structure

The lectures will follow the structure of the textbook. The link between theory and practice is emphasized and accordingly the lectures will be given both by leading auditors from top audit firms and academics who specialize in the auditing area. The assignments form the basis for the subsequent seminars and will cover different parts of the audit process and review of financial statements. Students are expected to prepare for the seminars by accomplishing the assignments. The purpose of the seminars is to explain how theory is used in practice by working with practical examples and cases.

Course Administrator: Christina.Ekelin@hhs.se

The students shall demonstrate their ability to give account of and practically apply theories, concepts and methods within the following areas:

1. The role of auditing for well-functioning capital markets and for corporate risk management
2. How to deal with specific corporate risks from an auditor perspective
3. The audit process
4. Other assurance engagements and non-assurance engagements

In order to fully benefit from the course, students need prior knowledge of financial accounting at an intermediate level. The course is open to third year bachelor students and master students.

Course book:

• Auditing and Assurance Services Global Edition (2023) by Alvin Arens, Randal Elder, Mark Beasley, Chris Hogan, ISBN:9781292448985

Course Reference:

• Selected standards from the International Standards on Auditing (ISAs).
• Auditing and Assurance Services, Global Edition - 2019 Randal Elder, Mark Beasley, Chris Hogan, Alvin Arens ISBN: 9781292311982
• Auditing & Assurance Services, 8th Edition (2021) By Timothy Louwers and Penelope Bagley and Allen Blay and Jerry Strawser and Jay Thibodeau (international edition) ISBN 9781260570519

The total grade is based on two parts:

1. A written, case-based open-book exam (75% of the total score)
2. Assignments, attendance and seminar performance (25% of the total score)

Find the course schedule in TimeEdit

Have you been granted educational support because of a documented disability? If so, please contact the course director as soon as possible so that adequate accommodations can be made.

Contact specialneeds@hhs.se if you have questions about being granted educational support or need a copy of your educational support certificate.

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