COURSE NAME

AUDIT II
(Audit II)

COURSE CODE

ACT 3142

CREDIT HOURS

3 (3+0)

TOTAL STUDENT
LEARNING
HOURS

120 hours per semester

PREREQUISITE

ACT 3141

LEARNING
OUTCOMES

Students will be able :

SYNOPSIS

1.

to apply the audit risk

model in assessing the audit risk

2.

to discuss the issues facing

the audit profession in Malaysia and globally

3.

to
illustrate
the
communication skill in making professional judgment in
the audit environment

This course covers auditing procedures in the completion

of an audit specifically events near the signing of the
auditors report. It also emphasizes on the effects of IT on
auditing, the role of internal auditors, quality of audit,
fraud and professional ethics.
(Kursus ini merangkumi prosedur audit untuk
menyempurnakan audit terutamanya bagi peristiwa yang
berlaku sebelum laporan audit ditandatangani. Ia juga
menekankan kesan teknologi maklumat ke atas
pengauditan, peranan juru audit dalam, kualiti audit,
penipuan dan etika profesional.)

LECTURERS

COURSE
CONTENTS

:
:
:

DR. ASNA ATQA ABDULLAH (G3)

DR. MAZLINA MUSTAPHA (G1)
DR. SABARINA MOHAMMED SHAH (G2 and G4)

Contact Hours

30 August2016

LECTURES

1.

Audit risk and materiality

- The concept of risk (control risk, inherent risk
and detection risk) and materiality concept in
accounting and auditing
- The relationship between materiality and risk.
- Quantitative level and basis that can be used to
evaluate materiality
- Factors influencing the determination of
materiality level
- Use of audit risk model in audit work

2.

Audit sampling
- Consideration about the basic concept of
sampling and statistical sampling
- Sampling Risk and non-sampling risk
- Statistical sampling and non-statistical sampling
procedures
- Test of control (sampling characteristics) and
substantive tests (monetary unit sampling and
attribute estimation sampling)

3.

Group audit, completing the audit and the audit

report date
- Planning and administration of the group audit
- Specific issues in group audit (audit report for
subsidiary companies, contingencies, and
commitment)
- Going
concern,
accounting
estimates,
subsequent events after balance sheet date and
the impact of the events on the audit report
- Responsibilities of management and auditors

4.

Audit quality control

- Basic principles of ethics and professional
conduct, and its importance, based on the
regulations set by the Malaysian Institute of
Accountants
- Independence concept and its importance
- Situation that can affect the independence in
mind and in appearance
- Advertising and fees charged to clients
Professional ethics
- What is ethics and ethical dilemmas
- Regulations imposed by the Malaysian Institute
of Accountants (for professional conduct and
ethics) and professional independence

5.

30 August2016

Liabilities in accordance to the Companies Act

and Common law
Breach of contract and negligence

6.

Internal Audit
- The development, objectives, scope and
responsibilities of internal auditors
- Similarities and differences between internal
and external auditors
- Operational audit and compliance audit

7.

The effect of information technology

- Audit objectives and scope of work in
computerized environment
- Internal controls within the CIS environment
auditors
: and
Course
Worksevaluation on the internal control
50%
system
- Audit
through orQuiz
around the computer and5% (W4-5)
First assessmentcomputer-assisted
auditing
techniques
- CAAT20% (W8)
Second assessment -Midterm
examination
(27/10/2016, 8.00-10 am, venue tba)
Fraud
- Continuous
Types of fraud
Assessment - (25%)
- Assess
the risk of
of cases
fraud or issues (group work) 15%
Presentation
- Specific
ACL fraud risk areas
5%
Participations in forums @putrablast
5%
Other Assurance Services
- Prospective
Final Examfinancial information
50%
- Total
Forensic auditing
100%
- Halal assurance

ASSESSMENTS

8.

9.

Current
Issues
in Auditing
REFERENCES10.
: 1.
Arens,
A. A.,
Elder, R. J., Beasley, M. S., Amran, N. A., 4
- Fadzil,
Fraud F.Expectation
gapZ. M., Nor, M. N. M. & Shafie, R.
H., Yusof, N.
- (2014).
Whistleblowing
Act 2010
Auditing Provision
and Assurance
Services in Malaysia: An
nd
- Integrated
Environmental
auditing
Approach (3 Edition).
Kuala Lumpur:
Pearson.
Total
42
2. Grambling A.A., Rittenberg, L. E., & Johnstone, K. M.
(2012). Auditing A Business Risk Approach (8th Edition).
South Western: Cengage Learning. (TEXT)
3

Gul, F. A. & Nurmazilah Mahzan. (2015). Auditing:

Theory and Practice in Malaysia (2 nd Edition). CCH
Malaysia Sdn Bhd.

4.

Leung, C., Coram, P., Cooper, B. J. & Richardson, B. J.

(2015). Modern Auditing & Assurance Services (6th
Edition). Milton Qld: Wiley.

5.

Messier, W. F., Glover, G., Prawitt, S. & Boh, M. (2007).

Auditing and Assurance Services in Malaysia (3 rd Edition).
Kuala Lumpur: McGraw Hill.

30 August2016