Dr Liisa Kurunmaki, A503 and others

Optional for BSc Accounting and Finance, BSc Management, BSc Economics, BSc Econometrics and Mathematical Economics and the Diploma in Accounting and Finance. The course is also available as an outside option to students on other programmes and is open to General Course students.

Students must have a background in accounting equivalent to AC100 Elements of Accounting and Finance.

The course provides a critical analysis of auditing practices and their role in organisational governance and risk management. Auditing is demanded by, and provides assurance to, a variety of internal and external stakeholders, including corporate shareholders and regulators. As societal demands for accountability have increased, auditing has become both more important and more regulated itself. Auditing also remains controversial and this course will address contemporary debates.

The course addresses the theoretical basis of auditing, its role as a risk management function, its practical methodologies and its legal, professional and social environment. The course is divided into four modules. Corporate Financial Audit provides a basic overview and introduction to corporate auditing theory and practice.  The module investigates the roles of corporate financial audit in contemporary society; discusses issues related to the collection of audit evidence and assurance of audit quality; and analyses recent national and international developments in audit regulation and standard setting.  Internal Control and Risk Management critically examines recent developments in risk management and internal control practices, including the role of internal auditing and the problem of reporting on the effectiveness of control systems.  Public Sector Auditing and Accounting considers variants of the audit function in the public sector context, such as value for money auditing.  Finally, Sustainability Accounting and Auditing  addresses the broader accountability framework of the corporation and related environmental and social accounting and auditing issues.  While the primary focus of the course is upon UK practice, international comparisons will also be made.  There is also an intention to run a small number of practitioner lectures during the 2009-10 session. Further details will be provided at the start of the session.

20 lectures (AC340) and 16 classes (AC340.A) in the MT, LT and ST.

Students will be expected to produce a minimum of four written essays per year and one class presentation. All students will be expected to contribute to class discussion.

No one book covers the entire syllabus. In addition to professional and academic journals, reading will cover the following: P Moizer (Ed), Governance and Auditing, Edward Elgar (2005); and refer to M. Power The Audit Explosion, Demos (1996) and The Audit Society, OUP (1999), D. Flint, Philosophy and principles of auditing : an introduction, Macmillan Education (1988). Background reading for the fourth module may be found in Henriques, A., Corporate Truth: The Limits to Transparency (Earthscan 2007). Students will also be provided with relevant examples of corporate and other reports and referred to relevant websites. Detailed course programmes and reading lists will be distributed at the first lecture of the course.

A three-hour formal unseen examination will take place in the ST.

AC340 Financial Times Prize

The Financial Times sponsors a prize for the best examination performance in AC340. The prize is worth £150 and is awarded at the end of the examination period each year.