BA313 - Auditing

Credit Points: 15

Prerequisite: BA214 Corporate Accounting

Co-requisite: N/A

Workload: 36 contact hours

Campus: Melbourne, Sydney

Aims & Objectives

This is a third-year Core Unit in the Bachelor of Business, major in Accounting. This unit provides an introduction to the underlying concepts and objectives of auditing, professional standards, law, and fieldwork practices of auditing in Australia. Emphasis is placed on auditing process, ethical considerations, independence, and corporate governance. The unit also aims to provide the students an understanding of the audit process.

The unit topics include:

  1. The nature of auditing & professional ethics
  2. The audit report
  3. Audit responsibilities and objectives
  4. Risk assessment and materiality
  5. Audit evidence
  6. Audit planning
  7. The auditor’s legal environment
  8. Internal control and control risk assessment
  9. Overall audit plan and audit program
  10. Completing the audit

Learning Outcomes

At the completion of this unit students should be able to:

  1. Explain the organisation’s and the auditor’s responsibilities for an audit
  2. Discuss reasons for performing different types of audits
  3. Understand the importance of planning an audit and distinguish the steps involved
  4. Explain and apply the auditing standards, practice and process of auditing to practical situations
  5. Identify and evaluate the risks inherent in an audit, and report on current auditing issues

Teaching Method

Lecture: 2 hours
Tutorial/Workshop: 1 hour
Face to Face


Assessment Task
Learning Outcomes Assessed
Contribution in classa-e*10%
Class Testb,c,e*20%
Assignment Groupa-e*20%
Final Exam (3 hours)a-e*50%
Total 100%

*refer to learning outcomes above.


Moroney, R., Campbell, F., & Hamilton, J., (2017). Auditing: A Practical Approach, 3rd edition. Australia: Wiley.

Reference Reading

  • Gray, I., Manson, S., & Crawford, L., (2015). The Audit Process; Principles, Practices and Cases, 6th edition. Australia: Cengage Learning
  • Chartered Accountants Australia & New Zealand [CAANZ] (2016). Auditing, Assurance and Ethics Handbook 2016, Australia: Wiley
  • Arens, A., (2016). Auditing, Assurance Services and Ethics in Australia, 1st edition. Australia: Pearson.
  • Leung (2013). Modern Auditing & Assurance Services, 5th edition. Australia: Wiley.

MIT is committed to ensure the course is current, practical and relevant so that graduates are “work ready” and equipped for life-long learning. In order to accomplish this, the MIT Graduate Attributes identify the required knowledge, skills and attributes that prepare students for the industry.
The level to which Graduate Attributes covered in this unit are as follows:

Ability to communicateIndependent and Lifelong LearningEthicsAnalytical and Problem Solving Cultural and Global AwarenessTeam workSpecialist knowledge of a field of study


Colour coding    

Extent covered

                               The standard  is covered by theory and practice, and addressed by assessed activities in which the students always play an active role, e.g. workshops, lab submissions, assignments, demonstrations, tests, examinations
 The standard is covered by theory or practice, and addressed by assessed activities in which the students mostly play an active role, e.g. discussions, reading, intepreting documents, tests, examinations
 The standard is discussed in theory or practice; it is addressed by assessed activities in which the students may play an active role, e.g. lectures and discussions, reading, interpretation, workshops, presentations 
 The standard is presented as a side issue in theory or practice; it is not specifically assessed, but it is addressed by  activities such as lectures or tutorials
 The standard  is not considered, there is no theory or practice or activities associated with this standard