MPF_AUDI Auditing

Faculty of Economics and Administration
Autumn 2022
Extent and Intensity
0/2/0. 5 credit(s). Type of Completion: zk (examination).
Teacher(s)
prof. Ing. Eva Horvátová, CSc. (seminar tutor)
Ing. Radim Procházka (seminar tutor)
Guaranteed by
prof. Ing. Eva Horvátová, CSc.
Department of Finance – Faculty of Economics and Administration
Contact Person: Iva Havlíčková
Supplier department: Department of Finance – Faculty of Economics and Administration
Timetable of Seminar Groups
MPF_AUDI/01: Thu 12:00–13:50 P303, except Thu 15. 9., except Thu 3. 11., R. Procházka
Prerequisites
( BPF_FIU1 Financial Accounting 1 && BPF_FIU2 Financial Accounting 2 ) && (! MPF_AAUD Auditing ) && !NOWANY( MPF_AAUD Auditing )
The course "Auditing" follows previous courses related to accounting. (Financial Accounting I and II).
Course Enrolment Limitations
The course is only offered to the students of the study fields the course is directly associated with.

The capacity limit for the course is 46 student(s).
Current registration and enrolment status: enrolled: 0/46, only registered: 0/46
fields of study / plans the course is directly associated with
Course objectives
The Auditing course aims to familiarize students with the principles and key aspects of external auditing of financial statements, while the emphasis will be on understanding the auditing process and providing a brief overview of international auditing standards. The first part of the course will focus on the importance of external auditing in today's context, regulation in the Czech Republic, and the auditor's code of ethics. The second part refers to the overall audit process from the client to the audit evaluation and the prepared auditor's report. Graduates will be able to grasp and critically evaluate the client approval process, risk assessment, audit planning, internal control evaluation, obtaining audit evidence, audit evaluation, and audit report writing. The student will be able to critically choose appropriate methods for obtaining audit evidence needed for an adequate auditor's statement.
Learning outcomes
The course is designed to help students understand the importance of an external financial statement audit in today's environment, why it is helpful to users of financial statements, and the current audit processes used to form an opinion on an entity's financial statements. After completing the course, students should be able to:

– explain the meaning of the external audit, its goals, and the responsibility of the auditor and company management;
- acquires knowledge of the auditor's professional ethics and the legal regulation of auditing in the Czech Republic (including international auditing standards)
- will be able to explain and critically evaluate the process and phases of the audit, incl. choosing the proper methods of obtaining audit evidence for risk assessment and detection of material misstatement
- will be able to read the auditor's report and distinguish different types of auditor's reports;
Syllabus
  • 1. Introduction to auditing – meaning, principles, objectives, regulation and supervision concerning external auditing
  • 2. Code of professional ethics and legal liability.
  • 3. Client acceptance - approval of the client and the auditor
  • 4. Planning the audit – plan, strategy, client risk assessment, materiality
  • 5. Planning the audit – Evaluation of Internal Control and Tests of Control (ToC)
  • 6. Testing and evidence - Introduction to audit evidence, evidence gathering, and analytical procedures
  • 7. Testing and evidence – Substantive accuracy tests focused on selected financial statement items and sampling.
  • 8. Audit evaluation process
  • 9. The process of issuing the auditor's report
  • 10 - 11. application of the audit process to the sales and collection cycle
Literature
    required literature
  • Audit and assurance. Seventh edition. London: London School of Business & Finance, 2017, 321 stran. ISBN 9781784803575. info
  • MÜLLEROVÁ, Libuše and Vladimír KRÁLÍČEK. Auditing pro manažery, aneb, Jak porozumět ověřování účetní závěrky statutárním auditorem. 4. vydání. Praha: Wolters Kluwer, 2020, 223 stran. ISBN 9788075989079. URL info
    recommended literature
  • DENNIS, IAN. Auditing Theory; Vydavatel: Taylor & Francis Ltd, Abingdon. 158 stran;. 2018. ISBN 978-1-138-59970-3. info
  • HAYES, Rick Stephan, J. C. A. GORTEMAKER and Philip WALLAGE. Principles of auditing : an introduction to international standards on auditing. 3rd ed. Harlow, England: Prentice-Hall, 2014, xxi, 714. ISBN 9780273768173. info
Teaching methods
Theoretical training and its application within solution of examples relating to audit procedures at seminars.
Assessment methods
A written exam completes the subject. To complete the course, you must get at least 60% of the points in the written test. Students can earn bonus points at the exercises, which will be awarded for active participation. Upon successful completion of the course (getting at least 60% of the exam points), bonus points can improve the final grade. The number of points will be determined at the beginning of the semester.

Before passing an exam test, it is required to fulfill: 1. 75 % attendance of seminars at minimum.

Grading scale: 100 – 92 % = A, 91 – 84 % = B, 83 – 76 % = C, 75 – 68 % = D, 67 – 60 % = E, less than 60 % = F.

Warning: Any copying, recording or leaking tests, use of unauthorized tools, aids and communication devices, or other disruptions of objectivity of exams (credit tests) will be considered non-compliance with the conditions for course completion as well as a severe violation of the study rules. Consequently, the teacher will finish the exam (credit test) by awarding grade "F" in the Information System, and the Dean will initiate disciplinary proceedings that may result in study termination.

If you have any questions related to the course and its completion, write to radim.prochazka@mail.muni.cz
Language of instruction
Czech
Follow-Up Courses
Further comments (probably available only in Czech)
Study Materials
The course is taught annually.
General note: Tento předmět je obsahově ekvivalentní s předmětem MPF_AAUD vyučovaném v anglickém jazyce.
Credit evaluation note: k = 1,25.
Listed among pre-requisites of other courses
The course is also listed under the following terms Spring 2010, Spring 2011, Spring 2012, Spring 2013, Spring 2014, Spring 2015, Autumn 2015, Autumn 2016, Autumn 2017, Autumn 2018, Autumn 2019, Autumn 2020, Autumn 2021, Autumn 2023, Autumn 2024.
  • Enrolment Statistics (Autumn 2022, recent)
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