Auditing

Code:

LGE407

Acronym:

AUD

Keywords
Classification	Keyword
OFICIAL	Business Sciences

Instance: 2004/2005 - 2S

Active?	Yes
Web Page:	http://www.fep.up.pt/disciplinas/lge407/
Responsible unit:	Department of Management
Course/CS Responsible:	Business Administration

Cycles of Study/Courses

Acronym	No. of Students	Study Plan	Curricular Years	Credits UCN	Credits ECTS	Contact hours	Total Time
GES	101	Official Curricular Structure since 2004	4	3		-

Objectives

Provide to the students methodologies and procedures used in auditing, particularly:
i) the planning;
ii) the internal control system;
iii) the procedures and techniques meant to be adequate to conclude whether or not the financial statements present fairly the financial position and performance of a firm, in accordance with the selected financial reporting framework.

Give to the students an overview about the relevant matters presents in Portuguese laws (CSC end CodMVM) concerning auditing.

Finally provide to the students information about the auditor career.

Program

I. Introduction

1. What is Audit?
2. Audit Objectives
3. Audit General Principles
4. Audit Scope
5. Differences between Auditing and Accounting
6. Auditing Standards
7. Conceptual Structure
8. Audit Process


II. Planning

1. Definition and Objectives
2. Knowledge of the Business
3. Risk and Materiality
4. Audit Evidence
5. Analytical Procedures
6. Working Plan
7. Documentation
8. Others Matters on Planning


III. Internal Control

1. Definitions and Importance
2. Internal Control Objectives
3. Internal Control Limitations
4. Internal Control System Elements
5. Evaluation and Understanding the Internal Control System
6. Control Tests


IV. Procedures for Obtaining Evidence in Auditing

1. Sampling
2. Substantives Procedures
2.1. Specified Analytical Procedures.
2.2. Tests of details of transactions and balances.


V. Auditing Specific Cycles

1. Third Parties Cycle
2. Cash Cycle
3. Revenues and Cost Cycle
4. Fixed Assets Cycle
5. Inventory Cycle
6. Equity and Debt Cycle
7. Accruals Cycle
8. Taxes Cycle

VI. Conclusions and Reporting

1. End of Work and Conclusions
2. The Auditor’s Report on Financial Statements
2.1. Objectives
2.2. Basic Elements of the Auditor’s Report
2.3. Formats


VII. Laws (Relevant matters)

1. Código das Sociedades Comerciais (Company Law)
2. Código do Mercado de Valores Mobiliários (Stock Market Law)


VIII. The Profession

1. The Portuguese Auditor Statute
2. Ethical Code
3. Regulations

Main Bibliography

Baptista da Costa – “Auditoria Financeira – teoria e prática”, Rei dos Livros, 5th Edition, 1995

Baptista da Costa e Correia Alves – “Casos Práticos de Auditoria Financeira”, Vislis, 3rd Edition, 2001

Complementary Bibliography

Vicent O’Reilly and Others – “Montgomery’s Auditing”, John Wiley & Sons Inc, 12th Edition, 1998.
ISBN: 0471140635

Vicent O’Reilly and Others – “Montgomery’s Auditing Continuing Professional Education”, John Wiley & Sons Inc, 12th Edition, 1999.
ISBN: 0471346055

Vicent O’Reilly and Others – “Montgomery’s Auditing, 2001 Supplement”, John Wiley & Sons Inc ,12th Edition, 2001.
ISBN: 0471414875

Philip Defliese e Robert Montgomery – “Montgomery's Auditing: College Version”, John Wiley & Sons Inc ,11th Edition. 1999.
ISBN: 0471507067

Teaching methods and learning activities

Theorical and pratical classes

Evaluation Type

Evaluation with final exam