Topic 1: Introduction to Auditing (AUD339)

Topic 1: Introduction to Auditing (AUD339)

1. What is Auditing?
2. Auditing vs Accounting
3. Degree of correspondence with established criteria
4. Why Do We Need Auditing? (having the financial statements audited)
5. Key Features of Auditing
6. Objectives of Financial Statement Audit

The Auditor

1. Approved company auditor
2. Types of Auditors
3. Types of Audit
4. Internal Auditor vs External Auditor
5. Advantages of having and external audit to the company
6. Qualities that a professional accountant should possess

The authority

1. The authority that govern the accountancy profession in Malaysia
2. Functions of the (MIA) to the accounting profession in Malaysia
3. Standard issued by MIA that helps members executing their duties
4. Benefits of an audit performed by a Chartered Accountant
5. Benefits of auditing to the employees of an audited company

The Management and Auditors

1. Auditing vs Accounting
2. Internal Auditor vs External Auditor
3. Advantages of having and external audit to the company
4. Responsibilities of Management and Auditor
5. Directors' and auditors' compliance with Companies Act 2016 (CA 2016)
6. Shared outcomes (directors and auditors)

Auditor services

1. Auditor’s roles when auditing a company’s financial statements
2. Assurance vs Non-Assurance Services
3. Assurance, Attestation & Auditing
4. ‘True and fair view’ in the scope of financial statement audit
5. Independent examination
6. Reasonable (not absolute) assurance
7. Difference between error and fraud in auditing
8. Reasons for the growing demand on auditing

Agency Theory

1. Agency Theory
2. Agency theory (what & why it matters)
3. Motives of agents that causing information imbalance (agency problems)
4. How it reduces asymmetry (Between Mgmt and Shareholders)
5. Causes of Information Risk
6. How to Reduce Information Risk?
7. Why an independent audit reduces information risk?

Others

1. Quick Exam Tips
2. FAQ from students