Auditing

  • Credits: 5
  • Ending: Examination
  • Range: 20sP
  • Semester: winter
  • Year: 3
  • Faculty of Business Economics with seat in Košice

Teachers

Included in study programs

Business Economics and Management

Teaching results

The aim of the course is to provide students with the latest knowledge in the field of auditing, to define the subject, tasks and meaning of audit, to characterize the legal regulation of audit (national and transnational), as well as audit methodology - with used audit procedures and methods. The course is to acquaint students with the audit system and in the form of solving case studies and model situations to involve students in the practice of auditing activities in accordance with national legislation as well as international auditing standards.

Knowledge: Theoretical and especially practical knowledge and understanding of knowledge related to auditing issues. Knowledge of basic audit methods and procedures, audit selection in control and factual tests, audit documentation, audit report and auditor's opinion. Understanding the principles of audit evidence, audit conclusions, and audit reports.

Competence: Ability to work with information - search for it, select it, analyze it and synthesize it with an orientation to be used in the audit of financial statements and annual report. Collection and evaluation of data related to the audit of financial statements and annual report, comparison of procedures according to national regulation and transnational (international) audit regulation, implementation of audit methods and procedures in the company.

Skill: Ability to apply audit instruments to a specific company, critically evaluate the situation, propose solutions to problems related to the performance of the audit. Orientation in audit methods and procedures, in audit documentation, in the audit report and the auditor's opinion. Use of national audit regulation according to individual parts, their concretization in the audit environment and interpretation of findings. Use of international auditing standards according to individual parts, their concretization in the audit environment and interpretation of findings.

Indicative content

Indicative content:
Consultation:
Auditing - definitions, tasks and meaning of audit. Transnational audit arrangements. International audit bodies and institutions. National audit regulation. Slovak Chamber of Auditors. Audit Oversight Office. Auditing profession in the Slovak Republic, Act no. 540/2007 Coll. on auditors, audit and supervision of audit performance. Auditor's responsibility. Auditor independence. Auditor's professional ethics. Auditor's Code of Ethics. Audit selection in control and factual tests. Audit methods and procedures. ISA as a legal regulator of auditing in the Slovak Republic (to acquaint students in general with the “Handbook of International Auditing Guidelines. Types of audit - compliance audit, internal audit, operational audit. Relationship between the independent and the internal auditor. Audit documentation. Audit report and auditor's opinion. International Standards on Auditing - ISA. Introductory matters. General principles and responsibility. Risk assessment and response to assessed risks. Audit evidence. Use the work of others. Audit conclusions and reports. Special areas. Audit harmonization and its perspective.

Self-study:
The essence of the audit and its objectives - definitions. What changes in the company led to the emergence of a modern audit? What is the content of the various terms "true-flawless"? Legal regulation of audit in the Slovak Republic. Test. A typical test example as a means of placing an audit order in accordance with the legal regulations of the Slovak Republic and audit procedures.
Auditor's responsibility. What are the basic types of auditor responsibilities? Who is the potential prosecutor of the auditor? Measures to minimize the risk of the contract. Ethical behavior of the auditor. Example: fact - what is contrary to the code of ethics? What is not in conflict with the code of ethics? Auditor's report and its information function. Audit procedures. Use International Standards on Auditing (ISAs) on a part-by-part basis and specify these in the audit environment. Written continuous work. Audit procedures. Use International Standards on Auditing (ISAs) on a part-by-part basis and specify these in the audit environment. Audit of financial statements and annual report. Audit of assets (application) when applying audit technique.1. Existence. 2. Status 3. Ownership. Audit of financial statements and annual report. Audit of assets (application) when applying audit technique.1. Valuation, 2. Reporting. Audit of financial statements and preparation of the report. Audit of assets (application) when applying audit technique. 1. Valuation, 2. Reporting. Audit of financial statements and preparation of the report. Audit of foreign sources and equity. Preparation for written continuous work. Audit of the income statement and notes to the financial statements. Testing of revenues, costs, testing of factual correctness, existence and completeness. Auditor documentation and audit evidence. Quality control for small and medium-sized audit firms. Preparation for semester work presentations.

Support literature

Elementary literature:
1. KAREŠ, L.: Audítorstvo. 1. vydanie. Bratislava : SKCÚ, 2020. ISBN 978-80-972525-7-1.
2. KAREŠ, L.: Teória auditu. Bratislava : Wolters Kluwer, 2015. ISBN 978-80-8168- 149-3.
3. GEIGER, M.A. – GOLD, A. – WALLAGE, Ph. _ Auditor Going Concern Reporting: A Review of Global Research and Future Research Opportunities (Routledge Studies in Accounting). London: Routledge. 2021. 1st edition. ISBN978-0367649487
4. WHITTNGTON, O.R. – PANY, K.: Loose Leaf for Principles of Auditing & Other Assurance Services. New York: McGraw-Hill Education, 2018. 21st edition. ISBN 978-1260299397.
5. IFAC: International Standards on Auditing (ISA). 2021
6. IFAC: Handbook of International Quality Control, Auditing, Review, Other Assurance, and Related Services Pronouncements. 2021
7. ŠLOSÁROVÁ, A. - BLAHUŠIAKOVÁ, M.: Analýza účtovnej závierky. 2. prepracované a doplnené vydanie. Bratislava : Wolters Kluwer SR, 2020. ISBN 978-80-571- 0166-6.

Supplementary literature:
1. Časopis Účtovníctvo, audítorstvo, daňovníctvo v teórii a praxi. Ročníky 2018, 2019, 2020, 2021.

Syllabus

Indicative content: Consultation: Auditing - definitions, tasks and meaning of audit. Transnational audit arrangements. International audit bodies and institutions. National audit regulation. Slovak Chamber of Auditors. Audit Oversight Office. Auditing profession in the Slovak Republic, Act no. 540/2007 Coll. on auditors, audit and supervision of audit performance. Auditor's responsibility. Auditor independence. Auditor's professional ethics. Auditor's Code of Ethics. Audit selection in control and factual tests. Audit methods and procedures. ISA as a legal regulator of auditing in the Slovak Republic (to acquaint students in general with the “Handbook of International Auditing Guidelines. Types of audit - compliance audit, internal audit, operational audit. Relationship between the independent and the internal auditor. Audit documentation. Audit report and auditor's opinion. International Standards on Auditing - ISA. Introductory matters. General principles and responsibility. Risk assessment and response to assessed risks. Audit evidence. Use the work of others. Audit conclusions and reports. Special areas. Audit harmonization and its perspective. Self-study: The essence of the audit and its objectives - definitions. What changes in the company led to the emergence of a modern audit? What is the content of the various terms "true-flawless"? Legal regulation of audit in the Slovak Republic. Test. A typical test example as a means of placing an audit order in accordance with the legal regulations of the Slovak Republic and audit procedures. Auditor's responsibility. What are the basic types of auditor responsibilities? Who is the potential prosecutor of the auditor? Measures to minimize the risk of the contract. Ethical behavior of the auditor. Example: fact - what is contrary to the code of ethics? What is not in conflict with the code of ethics? Auditor's report and its information function. Audit procedures. Use International Standards on Auditing (ISAs) on a part-by-part basis and specify these in the audit environment. Written continuous work. Audit procedures. Use International Standards on Auditing (ISAs) on a part-by-part basis and specify these in the audit environment. Audit of financial statements and annual report. Audit of assets (application) when applying audit technique.1. Existence. 2. Status 3. Ownership. Audit of financial statements and annual report. Audit of assets (application) when applying audit technique.1. Valuation, 2. Reporting. Audit of financial statements and preparation of the report. Audit of assets (application) when applying audit technique. 1. Valuation, 2. Reporting. Audit of financial statements and preparation of the report. Audit of foreign sources and equity. Preparation for written continuous work. Audit of the income statement and notes to the financial statements. Testing of revenues, costs, testing of factual correctness, existence and completeness. Auditor documentation and audit evidence. Quality control for small and medium-sized audit firms. Preparation for semester work presentations.

Requirements to complete the course

Ongoing evaluation:
Preparation and presentation of semester work 20%
Continuous written assessment 20%
Final written assessment (written exam): 60%

Student workload

130 hours in total, of which:
20 hours participation in consultation
32 hours of self-study
26 hours preparation for active forms
52 hours exam preparation

Language whose command is required to complete the course

slovak

Date of approval: 21.03.2022

Date of the latest change: 24.01.2022