FACULTY OF BUSINESS AND ACCOUNTANCY

BACHELOR IN ACCOUNTANCY
AUDITING & INVESTIGATION
PAS3143

DATE TOPIC REM ARKS

1. Professional conduct and ethics of an auditor

Fundamental principles of ethics and
professional conduct in accordance to MIA By
law
Importance of professional ethics
WEEK 1
Concepts of independence and its importance Lecture
(2 Oct 6 Oct)
Situation that can influence independence in
appearance and in fact
Concept of Advertising and other methods to
attract customer
Amount of fees that can be charged

Lecture
2. Auditors liability
WEEK 2 Concept of Liability of Auditor under the
(9 Oct 13 Oct) Companies Act, Common Law, Breach of
Quiz 1
contract and negligence.

3. Materiality and audit risk

WEEK 3 Concept of Materiality in accounting and auditing Lecture
(16 Oct 20 Oct) Control risk, inherent risk and detection risk
Concept of materiality and audit risk
Standards and guidelines
Quantitative level and basis that can be used for
valuing materiality
WEEK 4 Tutorial
Factors influencing determination of materiality
(23 Oct 27 Oct) Discussion
Audit risk model to audit work.

4. The role of Computer Assisted Auditing

Techniques (CAAT) in audit work
Audit objective and scope of work in a
computerised environment
Internal control in CIS surrounding
Perform Auditors evaluation on internal control
WEEK 5 system Tutorial
(30 Oct 3 Nov) Describe and explain the concept of Auditing Discussion
through or around the computer
Explain the concept of Computer Assisted
Auditing Techniques (CMTs)
Identify and explain the nature and types of
CAATs
Consideration in using CMTs
Auditing software that can be used
 Test of data
Parallel simulation

5. Effect of post balance sheet events

Planning and administration for group audit
Specific issues in group audit Lecture
Principal auditor
Compliance of International Auditing and
WEEK 6 Accounting Standards.
(6 Nov 10 Nov) concept of Related party transactions
concept of Goodwill on consolidation
Letter of support
Test 1
Prepare Audit report for subsidiaries
Apply and relate to Companys Act

6. Internal audit
Development of internal audit
Objectives, scope and responsibility of internal
auditor
Similarities and differences between internal and
WEEK 7 Lecture
external audit
(13 Nov 17 Nov)
Function of Operational audit & compliance audit
o Describe the Concepts of operational
audit
o Define the Objectives and scope
Identifying criteria to evaluate performance

MID TERM BREAK

(20 Nov 24 Nov)

7. Group audit procedures

Planning and administration for group audit Lecture
Specific issues in group audit
Principal auditor
WEEK 8 Compliance of International Auditing and
(27 Nov 1 Dec) Accounting Standards.
Concept of Related party transactions
Concept of Goodwill on consolidation
Letter of support Quiz 2
Prepare Audit report for subsidiaries
Apply and relate to Companys Act

WEEK 9 8. Using work of others

Tutorial
(4 Dec 8 Dec) Relate the audit procedures when using the work Discussion
of other auditor, expert and internal auditor

9. Introduction to sampling
WEEK 10 Concept of Judgemental vs. statistical sampling Lecture
(11 Dec 15 Dec) Define the fundamental concepts of sampling Discussion
Sampling risk and non-sampling risk
Statistical sampling concepts and phrase
 Define, differentiate and apply the Sampling
procedure
o statistical
o non-statistical
Test of control: Attribute sampling
Test of substantive: Monetary unit sampling/
probability proportionate sampling)

10. Other services

Consultation
Secretarial services
Due diligence review
Forensic accounting/auditing
WEEK 11 Taxation
Seminar
(18 Dec 22 Dec)
11. Discuss the current issues facing the auditing
profession
Corporate governance
Audit of SMEs
Other relevant issues

12. Audit related services

WEEK 12 Auditors report to audit special circumstances
(25 Dec 29 Dec) Assurance level for related services
Lecture
Agreed Upon procedures
Compilation process
Review of financial information

WEEK 13
TEST 2
(1 Jan 5 Jan)
WEEK 14
ASSIGNMENT SUBMISSION
(8 Jan 12 Jan)

REVISIONS
FINAL EXAMINATION
(13 Jan 28 Jan)

Main Reference:

Arens, A.A., Elder, RJ., Beas M.S. Adapted by Faudziah Hanim Fadzil. Afza, Rohami, and Nor Zalina
(2014), Auditing and Assurance Services in Malaysia, An integrated Approach, 3rd Edition Pearson
Education, Kuala Lumpur.(S,T&S).

Additional References:

1. Auditing: Theory and Practice in Malaysia by CCH, Nurmazilah Mahzan & Gulf Ferrady
2. Messier, W.F. & Margaret Bah (2006), Auditing and Assurance Services in Malaysia, Malaysia.
McGraw-Hill. (M&M)
3. MIA by-laws (Undang-undang kecil) on Professional Conduct and Ethics (Kod Etika MIA).
4. Companies Act 1965/2017 and Accountants Act 1967.
5. Relevant approved accounting standards in Malaysia.
6. Relevant professional and academic journals.

Assessment: Coursework (50%), Final examination (50%)