Professional Documents
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ISLAMIC UNIVERSITY Senate endorsement date:
MALAYSIA Version no:
Version effective date:
COURSE OUTLINE
1. Course Title: AUDIT FUNDAMENTALS
3. Credit Value: 3
8. Course Synopsis: This course is mainly concerned with the introduction of the external audit of
financial statements, mainly statutory financial audits. It is intended to show students the nature
of audit procedures, legal requirements, audit theory and its practical application. At the end of
this course, students should be able to perform an audit of a small or medium size company by
applying the substantive approach.
Audit documentation
Importance of audit working papers
Types of audit working paper
Types of audit files
Indexing
Control and rights to the audit working
papers
Confidentiality
Group Work 1
8
(20 to 24 SEMESTER BREAK
March
2017)
16. References:
16.1. Required
Eilifsen,A., Messier, W.F, Glover,S.M, Prawitt, D.F.,Samsuwatd Zuha Mohd Abbas,
Sharifah Nazatul Faiza Syed Mustapha Nazri, Kalsom Salleh, Nawal Kasim,
Nahariah Jaafar, Aida Hazlin Binti Ismail and Razana Juhaida Binti Johari (2017)
Princples of Auditing & Assurance Services in Malaysia, 3 rd Ed, McGraw Hill,
Kuala Lumpur
16.2. Recommended
1. Arens, A.A, Elder, R.J., Beasley, M.S., Amran, N.A., Fadzil, F.H., Yusof, N.M., Nor,
M.N.M. and Shafie., R. (2014) Auditing and Assurance Services in Malaysia: An
integrated approach, 3rd Ed., Pearson, Kuala Lumpur.
2. Gul. F. and Mahzan, M, (2015) Auditing: Theory and Practice in Malaysia, 2nd Ed.,
CCH Asia Pte Limited.
3. Malaysian Approved standards on Auditing
4. Companies Act 1965
5. Accountants Today, various volumes
No.
Outcomes
Outcome Domain
1
Distinguish between auditing and accounting and differentiate among the various assurance services.
2
Describe the
relevant regulators, authorities and professional bodies in the Malaysian auditing environment
3
Distinguish the auditors and managements responsibilities on audit of the financial statement, and
explain regarding materiality, risks and various components of the audit risk model.
4
Perform a statutory audit of a small business in accordance with relevant accounting and auditing
standards, as well as the code of professional conduct and ethics.
5
Identify, based on management assertions, appropriate audit objectives, types of audit procedures and
apply relevant audit procedures on balance sheet and income statements of a small company.
6
Critically analyze (including from an Islamic perspective) practical auditing problems and ethical
dilemmas.
7
Apply the proper standard sampling methods and prepare the appropriate audit report.
8
Demonstrate basic presentation skills, as well as intermediate tertiary level communication and team-
work skills