Module: Audit and Assurance
Lecture 7 – Coursework Guidance, Recap on Professional Ethics and Recap on
Internal Audit
Coursework
First paragraph on audit being dynamic
Avoid talking about the historical aspects of it
We would like to see evidence that you have considered how auditing has
changed.
Consider the changes that businesses have made and how audit has also
changed.
Assess whether audit has been proactive in anyway in terms of its dynamism
or whether it has been reactive.
Proactive = for something to be proactive, you have to be thinking about an
event happening in advance. Example: auditors saw that companies were
changing their systems and internal control mechanisms so audit was
proactive in relation to changing from systems-based to risk-based.
Reactive = where a change has happened and you react to it.
It would be hard to argue that audit wasn’t dynamic
There is a level of dynamism attached to audit
Audit hasn’t been static
To an extent, auditing has been somewhat reactive.
There is now what we call the reactive audit process that is being trialled by
the big 4 companies.
You should by now have completed the first paragraph.
Review of Lecture 3 slides (Professional Ethics)
Slide 23 – Ethics and Confidentiality
Confidentiality is an important aspect in auditing and accounting.
When we deal with client accounts, we will be privy on the information that is
not known to the public and the capital market.
One of the rights we have during the process is the right to attend all the
board meetings where strategies are discussed e.g. things such as a new
product range they might be launching. We should not disclose anything
unless there is consent obtained by the client or required to do so by law. A
subpoena will override confidentiality.
You should not use the information to invest in the shares and gain any
personal gains or benefit because that will count as insider dealing and is a
criminal offence.
Lecture 7 – Coursework Guidance, Recap on Professional Ethics and Recap on
Internal Audit
Coursework
First paragraph on audit being dynamic
Avoid talking about the historical aspects of it
We would like to see evidence that you have considered how auditing has
changed.
Consider the changes that businesses have made and how audit has also
changed.
Assess whether audit has been proactive in anyway in terms of its dynamism
or whether it has been reactive.
Proactive = for something to be proactive, you have to be thinking about an
event happening in advance. Example: auditors saw that companies were
changing their systems and internal control mechanisms so audit was
proactive in relation to changing from systems-based to risk-based.
Reactive = where a change has happened and you react to it.
It would be hard to argue that audit wasn’t dynamic
There is a level of dynamism attached to audit
Audit hasn’t been static
To an extent, auditing has been somewhat reactive.
There is now what we call the reactive audit process that is being trialled by
the big 4 companies.
You should by now have completed the first paragraph.
Review of Lecture 3 slides (Professional Ethics)
Slide 23 – Ethics and Confidentiality
Confidentiality is an important aspect in auditing and accounting.
When we deal with client accounts, we will be privy on the information that is
not known to the public and the capital market.
One of the rights we have during the process is the right to attend all the
board meetings where strategies are discussed e.g. things such as a new
product range they might be launching. We should not disclose anything
unless there is consent obtained by the client or required to do so by law. A
subpoena will override confidentiality.
You should not use the information to invest in the shares and gain any
personal gains or benefit because that will count as insider dealing and is a
criminal offence.
