Auditing

Code:

LGE407

Acronym:

AUD

Keywords
Classification	Keyword
OFICIAL	Business Sciences

Instance: 2006/2007 - 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	175	Official Curricular Structure since 2004	4	3		-

Objectives

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

To give the students an overview of the relevant matters present in Portuguese laws (CSC end CodMVM) concerning auditing.

To provide the students with information about a career in auditing.

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. Other 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. Substantive 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 and Correia Alves – “Casos Práticos de Auditoria Financeira”, Vislis, 3rd Edition, 2001

Complementary Bibliography

Vincent O’Reilly et al – “Montgomery’s Auditing”, John Wiley & Sons Inc, 12th Edition, 1998.
ISBN: 0471140635

Teaching methods and learning activities

Theoretical and practical classes

Evaluation Type

Evaluation with final exam