Advance Audit and Assurance Bac 301

Course Title: Advanced Auditing and Assurance Services
Course Code: BAC 301

Course Status: Core
Credit Rating: 10
Total Hours Spent: 100
Course Aims
BAC 301 is a course that covers advanced topics in auditing for undergraduate students. It
mainly introduces students to specific (field work) procedures of auditing, and finally the
reporting and reporting implications. To benefit from this course students are required to have
attended and completed successfully the prerequisite course BAC 203.
Learning Outcomes
Upon completion of this course a student should have developed competencies in:
i] Performing audit procedures on selected financial statements items, audit of specialized
entities and audit of computerized accounting systems,
ii] Conducting external and internal audit assignments for a variety of entities,
iii] Interpreting audit evidence and write audit reports based on conclusions reached, and
iv] Identifying and analyzing the implications of the reporting responsibility of the auditor.
.Course Contents
1. Review of key audit tests and procedures
1.1 Risks assessment procedures
1.2 Tests of controls
1.3 Analytical procedures
1.4 Substantive tests
2. Audit of the sales and collection cycle

2.1 Description of the sales cycle
2.2 Control risks in the sales cycle and relevant tests of control
2.3 Applying tests for sales transactions
2.4 Testing and confirming trade debtors
2.5 Testing and verifying cash receipts
3. Audit of the purchases and payments cycle

3.1 Description of the purchases cycle
3.2 Control risks in the purchases cycle and relevant tests of control
3.3 Applying tests for purchase transactions
3.4 Testing and confirming trade creditors
3.5 Testing and verifying cash payments
4 Audit of stock
4.1 The nature of stock and challenges to the auditor
4.2 Testing and verifying stock balances
5 Audit of Non-current assets

5.1 Acquisitions, disposals and year-end balance
5.2 Depreciation and its provision
6 Audit of capital and long-term debt
6.1 Substantive audit procedures relating to capital and long term debt
7 Verifying cash balances

7.1 Physical verification of cash
7.2 Audit procedures for cash count
7.3 Substantive audit procedures relating to cash
8 Other audit related assignments

8.1 Prospective financial information
8.2 Forensic audits
8.3 Internal audit
8.4 Environmental and social audits
9 Completing the audit

9.1 Description and procedures involved
9.2 Review of contingencies
9.3 Review of post-balance sheet events
9.4 Review of going concern
9.5 Accumulation of final evidence and communication with management
10 Auditor’s reports
10.1 Auditor’s considerations in issuing an audit report
10.2 Basic elements of the standard unqualified audit report
10.3 Types of opinions, categories of audit reports and conditions for each
10.4 Reports involving other auditors
11 Audit of a computerized environment

11.1 Introduction to computerized accounting system
11.2 Controls in the computerized accounting system
11.3 Audit approach of a computerized accounting system
Course Delivery Mode

 40 lecture hours
 20 Seminar hours
 20 Assignments hours
 20 Independent Study hours
Assessment
i] Coursework:
Test 1: 10%,
Test 2: 10%,
Assignments: 10%,
Oral Tests: 10%
Total 40%
ii] Final Examination: 60%
Reading List
Arens, A. A., Elder, R. J., & Beasley, M. S. (2012). Auditing and Assurance Services: An
Integrated Approach (14th Ed.). New Jersey: Pearson.
Busara, E., (2012). Financial Analysis Auditing & Governance, WAPO Press, Dar es Salaam.
Hayes, R., Dassen, R., Schilder, A., & Wallage, P. (2005). Principles of Auditing: An
Introduction to International Standards on Auditing (2nd Ed.). Edinburgh: Pearson
Education Limited.
United Republic of Tanzania: The Companies Act, 2002 (available on
www.parliament.go.tz/Polis/PAMS/Docs/12-2002.pdf).
Gray, I. and Manson, S. (2005): The Audit Process: Principles, Practice and Cases, (3rd
Ed). Australia et. al.: Thomson Learning, 2005.
IFAC & NBAA Code of ethics
Relevant Technical Standards– International Standards on Auditing

 ISA 200 Overall Objectives of the Independent Auditor and the Conduct of an Audit in
Accordance with International Standards on Auditing
 ISA 300 Planning an Audit of Financial Statements
 ISA 315 Identifying and Assessing the Risks of Material Misstatement Through
Understanding the Entity and its Environment
 ISA 320 Materiality in Planning and Performing an Audit
 ISA 450 Evaluation of Misstatements Identified during the Audit
 ISA 500 Audit Evidence
 ISA 505 External Confirmations
 ISA 520 Analytical Procedures
 ISA 530 Audit Sampling
 ISA 540 Auditing Accounting Estimates, Including Fair Value Accounting Estimates and
Related Disclosures
 ISA 580 Written Representations
 ISA 700 The Auditor’s Report on Financial Statements
 ISQC 1 Quality Control for Firms That Perform Audits
 The Public Finance Act 2001 (R.E 2004)
 The Public Audit Act 2008

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Course Title: Advanced Auditing and Assurance Services

Course Code: BAC 301

2. Audit of the sales and collection cycle

3. Audit of the purchases and payments cycle

5 Audit of Non-current assets

7 Verifying cash balances

8 Other audit related assignments

9 Completing the audit

11 Audit of a computerized environment

Course Delivery Mode

Relevant Technical Standards– International Standards on Auditing

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