LEARNER GUIDE
LEARNER GUIDE
2017
2017
FACULTY OF ACCOUNTING AND INFORMATICS
FACULTY OF ACCOUNTING AND INFORMATICS
DEPARTMENT OF AUDITING AND TAXATION
DEPARTMENT OF AUDITING AND TAXATION
QUALIFICATION: BACHELOR OF TECHNOLOGY –
QUALIFICATION: BACHELOR OF TECHNOLOGY –
INTERNAL AUDITING
INTERNAL AUDITING
BT IAU 2
BT IAU 2
INTERNAL AUDITING 4
INTERNAL AUDITING 4
(IAUD 401)
(IAUD 401)
Module 1: IAUD 411
Module 1: IAUD 411
And
And
Module 2: IAUD 421
Module 2: IAUD 421
CONTENTS
PAGE
DEPARTMENTAL INFORMATION 2
WELCOME AND INTRODUCTION 3
INTRODUCTION TO THE SUBJECT 3
LEARNING OUTCOMES AND ASSESSMENT CRITERIA 4
LEARNING AND TEACHING STRATEGIES 4
COPYRIGHT AND PLAGIARISM 6
STUDENT SUPPORT 6
WORK INTEGRATED LEARNING, INDUSTRY, COMMUNITY AND OCCUPATION-RELATED INFORMATION
7
QUALITY ASSURANCE AND ENHANCEMENT 8
TEST DATES 8
MODULE 1 - CORE SYLLABUS 9
MODULE 1 – SCHEME OF WORK 12
MODULE 2 – CORE SYLLABUS 13
MODULE 2 – SCHEME OF WORK 15
ATTACHMENTS CAREER PATH
DEPARTMENTAL INFORMATION
DEPARTMENT : Auditing and Taxation (Ritson Campus)
LECTURER : Mr A Seetharam CA(SA); FIIASA, CIA Telephone: (031) 373 6753
Email: [email protected] HEAD OF DEPARTMENT : Mr D Reddy CA(SA)
Telephone: (031) 373 6781 Email: [email protected] DEPARTMENT SECRETARY : Mrs Phumzile Khumalo
Room R4-227
Telephone: (031) 373 5610 Fax: (031) 373 5601
Email: [email protected] LECTURES : 3 periods per week
TUTORIAL SESSIONS : 1 period per week STUDENT CONSULTATION : To be confirmed. LECTURE VENUE : To be confirmed. TUTORIAL VENUE : To be confirmed. DURATION OF COURSE
Module 1 – IAUD411 : Semester 1 (21 weeks) Module 2 – IAUD421 : Semester 2 (19 weeks)
DEPARTMENT OF AUDITING AND TAXATION
1. Welcome and Introduction 1.1 Dear Student
The Department of Auditing and Taxation welcomes you as a student in Internal Auditing 4 (Module 1 and 2).
Read the information in this learner guide and make sure you have it at hand at all times, since you will frequently need to refer to it during the year.
1.2 The learner guide assists the students with:
Subject content to be covered, Preparing for lectures,
Self-study, and
Learning outcomes, assessment criteria and assessment strategies.
2. Introduction to the subject
2.1 The course covers an integrated and practical approach of the entire audit process which entails the planning, executing and finalisation of audits. It also covers governance, risk management, and controls.
The course requires of students to integrate their knowledge, gained from the current and prior years, from Financial Accounting, Cost and Management Accounting, Taxation
and Company Law. 2.2 Pre-Requisites
The pre-requisites for this course are:
Internal Auditing 3 (Module 1 and Module 2).
In addition, a thorough knowledge of the audit process, business processes, risks and
controls (e.g.: The Revenue and Receipts process, risks and controls) studied in prior years is essential for this course.
The following is expected of students in addition to formal lectures:
Obtain an overview of specific lecture content prior to each lecture.
Prior reading of the specific lecture content before attending each lecture. Participation in lecture discussions.
Apply critical thinking with regard to problem solving.
Integrate knowledge of other subjects covered in your programme.
2.3 Recognition of Prior Learning (RPL) None.
3. Learning Outcome and Assessment Criteria
To provide students with a holistic view of the subject matter and to apply it in an
integrated and practical manner.
To provide students with a degree of responsibility and autonomy in the application
of the fundamental concepts. 3.1 Specific Outcomes
After having completed this course, the student should have an understanding of and be able to:
Use the audit process to perform an audit from start to end for assurance and
consulting engagements.
Evaluate and improve on risk management, control and governance processes. Identify, categorise and communicate audit findings.
3.2 Assessment Criteria
This specifies the evidence and the qualities of the performance which must be
demonstrated to achieve an outcome.
Simply stated, they are the standards and activities by which students can prove
that they have achieved a specific outcome at the end of a learning period.
For this course, the method of assessments is:
o Tests and o Exams.
4. Learning and Teaching Strategies 4.1 Lectures and Tutorials
Formal lectures are an essential component of this course. Therefore, attendance
at lectures is important.
Students will be given tutorials and the suggested solutions in advance, i.e.: prior
to the related topics being covered at lectures in class. Students are expected to attempt the tutorials prior to attending the tutorial class. Tutorials provide a student with an opportunity to share views and discuss problems with the lecturer and fellow students.
Student participation is of utmost importance to obtain maximum benefit of
tutorials.
Tutorials are compulsory and the following process must be followed by students in order to ensure success in this course:
The text book material together with the lecture content must be studied in detail
prior to attempting the tutorials.
Tutorial questions must be answered under exam conditions prior to the tutorial
sessions. The answers should be marked using the suggested solutions and further learning should take place from shortcomings identified. Problematic areas must be highlighted by students and brought to the attention of the lecturer during the
tutorial session. Students would now be prepared for the tutorial sessions.
The tutorial sessions would be used to discuss problematic areas that were identified
by students. Note that, the tutorial sessions are not for students to do tutorials in the class, neither is it for the lecturer explain the entire tutorial without any attempts made by students. Tutorials must be done by students in their own time prior to each tutorial session.
The above strategy for success is based on the following quote:
“Mistakes increases your experience, and experiences decreases your mistakes.” “If you learn from your mistakes, then others learn from your success!”
Author unknown.
4.2 Graduate Attributes
To provide students with sufficient knowledge to apply in the work place. 4.3 Assessment Criteria
The final mark is calculated as follows:
- Examination mark 60% - Course mark (DP) 40% - Final mark 100%
The examination consists of one, three-hour paper which shall constitute 60% of
the final mark.
Two tests will be written, and an average mark of the two tests will count as a
course mark for DP purposes. It must be noted that these tests are compulsory.
To be admitted to the examination, the student must earn a course mark of at least
Students must obtain a combined course and examination mark of not less than
50% to pass the subject.
A student fails if he/she does not achieve the sub-minimum of 40% for the
examination paper, despite the fact that the combined mark is 50% or more.
Apologies for not writing tests will only be accepted by the submission of either an
original medical certificate or a letter from the student’s employer (for work commitments) within 48 hours of the test being written. Only in these circumstances the student will be given an opportunity to write an Aegrotat test which will serve as a replacement test mark for either test 1 or test 2 mentioned above. The course mark is calculated in the same manner mentioned above.
It must be noted that, if a student is unable to write test 1 and test 2 mentioned
above, only one Aegrotat test will be written. This will only represent one test mark of the two compulsory tests referred to above. Therefore, the other test will count as a zero mark for the calculation of the average course mark for DP purposes.
Students will receive feedback on their performance of tests and a post mortem of
each test will be conducted, so that students are able to identify their shortcomings and take corrective action going forward. Refer to the “At risk students” section below for more detail.
Note:
It must be noted that the success of a student will be determined by how well he or she
applies the theoretical knowledge in an integrated and practical manner. It is
therefore important to apply a holistic and practical view when studying this course. 5. Copyright and Plagiarism
Plagiarism is defined as copying the work or material developed by another and presenting the same as your own. Plagiarism will not be accepted under any
circumstances. 6. Student Support 6.1 At Lectures:
Lectures will be interactive were time will be allocated for students to ask questions on material discussed.
6.2 Consultation Times:
Students can also consult with the lecturer during consultation times which would be confirmed when lectures commence. The purpose of consultation sessions is to assist students with any queries that they may have. Students must adhere to consultation
times, unless prior arrangements are made with the lecturer to meet outside of the consultation times.
6.3 At Risk Students:
At risk students are defined as students that may not pass their assessments which
may result in not passing the course.
These students are identified and communicated to. Students are requested to identify
improvement areas/ plans for further assessments.
They are also requested to discuss their improvement plans with the lecturer for
further advice on improving their future assessments.
7. Work Integrated Learning (WIL), Industry, Community, and Occupation-related Information.
The programme does not have a Work Integrated Learning component. The Department, however, engages and invites potential employers within the field of Internal Auditing to conduct recruitment drives on campus. However, the department does not guarantee students employment from these initiatives. Further, students are advised to liaise with the Co-operative Education Department, during the course of their study, to source potential employers.
Internal Auditing is taking an increasing importance in commerce and industry due to large corporate failures, fraud, etc. The King IV report on Corporate Governance has emphasized the importance of the role of Internal Auditing in an organization with a view to ensuring a transparent, fair and ethical conduct by companies.
This has resulted in tremendous opportunities for students in the field of Internal Auditing. Refer to the attached career path information in the field of internal auditing. An important professional body to contact for further information on this discipline is the Institute of Internal Auditors (IIA).
8. Quality Assurance and Enhancement
Constructive student feedback is essential for quality assurance and enhancement. Student feedback will be elicited as follows:
Student discussions,
Student representative’s feedback to lecturer and HOD, and
Student surveys entailing an evaluation of the subject and the lecturer are
conducted.
Where applicable, feedback would be provided during lectures. 9. Test Dates
Modules Test week 1 Test week 2 Module 1 3 – 10 March 2017 21 – 28 April 2017 Module 2 18 – 25 August 2017 2 – 9 October 2017 Note:
The contents in this learner guide may be subject to change. Should there be any changes these will be communicated during lectures.
INTERNAL AUDITING 4 – MODULE 1 (IAUD 411)
APPENDIX 1
Learning outcomes Assessment criteria Assessment
Methods Exit level outcomes Unit
1a — Internal Audit Management 2 x 90 minute tests, and 1 x 3 hour written examination Specific outcomes (Element la.1) Establish an Internal Audit Department.
a) Understand and apply the responsibilities in terms of the Standards for the Professional Practice of Internal Auditing.
b) Prepare a Functions and Responsibility Statement according to the Standards for the Professional Practice of Internal Auditing.
c) Prepare Job Descriptions for all levels of internal auditors (Chief Audit Executive, Senior Audit Manager, Audit Manager, Senior auditor, auditor, junior auditor) according to the Standards for the
Professional Practice of Internal Auditing.
d) Develop audit manuals for the conduct of internal audit assignments according to the Standards for the Professional Practice of Internal Auditing.
e) Establish a marketing plan for the Internal Audit Activity.
f) Understand and apply the principles and concepts underlying the Outsourcing of internal audit.
g) Establish a Quality Assurance Plan for the internal audit activity according to the Standards for the Professional Practice of Internal Auditing.
h) Establish a policy document for the recruitment an appointment of internal audit personnel.
i) Establish a policy document for the professional development of internal audit staff according to the Standards for the Professional Practice of Internal Auditing.
j) Establish short, medium and long term planning schedules for the internal audit activity according to the Standards for the Professional Practice of internal Auditing
INTERNAL AUDITING 4 – MODULE 1 (IAUD 411)
Learning outcomes Assessment criteria Assessment
Methods Specific outcomes (Element 1 a.2) Apply management principles to the management and controlling of Internal Audit assignments/projects.
a) Establish/ Prepare project budgets according to the Standards for the Professional Practice of Internal Auditing.
) Establish/ Prepare project schedules according to the Standards for the Professional Practice of Internal Auditing.
c) Prepare progress reports of audit projects according to the Standards for the Professional of Internal Auditing:
d) Understand and apply basic supervisory activities in all phases of internal audit work:
Engagement planning (2200)
Performing the engagement (2300) Communicating results (2400) Monitoring progress (2500)
Resolution of managements’ acceptance of risks
(2600)
Exit level outcomes Unit lb — Specialist Audit Assignments
Specific/outcomes (Element 1b.1)
Perform and manage fraud / forensic audits.
a) Understand and apply the definition of fraud b) Advise on and explain why fraud happens
c) Advise on and understand who is responsible for detecting and deterring fraud
d) Advise on and establish a Corporate Fraud Policy e) Understand and apply the principles and the
methodology in detecting fraud
f) Determine the exposures risks of the business to fraud in all relevant functional areas:
Sales & Debtors
Purchasing & Creditors Inventory
Payroll
Long-term and short-term assets and liabilities.
g) Understand and advise on the symptoms of fraud h) Investigate and report instances of fraud
Specific outcomes (Element lb.2)
Perform and manage audits of Government and Non-profit Organizations
a) Understand, apply and manage the principles and concepts of Government audits in line with the Standards for the Professional Practice of Internal Auditing.
b) Understand, apply and manage the principles and concepts of the audit of Non Profit Organizations in line with the Standards for the Professional Practice of Internal Auditing.
INTERNAL AUDITING 4 – MODULE 1 (IAUD 411)
Learning outcomes Assessment criteria Assessment
Methods
Specific outcomes (Element lb.3)
Perform and manage audits of Performance Measures and related frameworks.
a) Understand and manage the principles and concepts of specific performance measures and frameworks in line with the Standards for the Professional Practice of Internal Auditing.
Specific outcomes (Element lb.4)
Perform and manage Environmental Audits.
a) Understand and apply the principles and concepts of Environmental Auditing in line with the Standards for the Professional Practice of Internal Auditing.
Specific outcomes (Element 1 b.5)
Perform and manage Treasury Audits.
a) Understand and mange the principles and concepts of Treasury Audits in line with the Standards for the Professional Practice of Internal Auditing.
Specific outcomes (Element 1b.6)
Perform and manage Value for Money audits (Operational Audits)
a) Understand and apply the principles and concepts of Value for Money audits (Operational Audits) in line with the Standards for the Professional Practice of Internal Auditing.
INTERNAL AUDITING 4 – MODULE 1 (IAUD 411)
Scheme of Work
Sections Outcome Reference Text Reference Establish an Internal Audit
Department / Activity Element 1a.1 ISPPIA 1000, 1100, 1200, 1300, 2000, 2100 King Report on Corporate Governance Chapter 1, 2, 9 Management and Controlling of Internal
Audit Assignment/ Projects
Element 1a.2
ISPPIA 2200, 2300. 2400, 2500, 2600
Chapter 2, 10, 11, 12
Perform and manage value for money audits
(Operational Auditing)
Element 1b.6
Notes from IA3 Perform and manage
Treasury Audits
Element 1b.2, 5
Public Finance and Management Act (PFMA), 1999. Specialist audit
assignments
Fraud and Forensic Auditing
Element 1b.1
Chapter 8 Perform and manage
Audits and Performance Measures and related frameworks
Element 1b.3
Prescribed Reading:
The following book is compulsory for this course:
Internal Auditing: Assurance and Advisory Services – 3rd edition, By Reding, Sobel,
Anderson, Head, Ramamoorti, Salamasick, and Riddle. Recommended Reading:
Internal Auditing:An Introduction–4thEdition, P Coetzee, R du Bruyn, H Fourie, K Plant. Performing Internal Audit Engagements – 4th Edition, P Coetzee, R du Bruyn, H Fourie,
K Plant.
INTERNAL AUDITING 4 – MODULE 2 (IAUD421)
APPENDIX 2
Learning outcomes Assessment criteria Assessment methods
Unit 1c
Corporate Governance, Risk Management, Internal Control and Internal Control evaluation 2 x 90 minute tests, and 1 x 3 hour written examination
Specific outcomes for unit 1c.1
Describe, apply and. advice on the objectives, nature and evaluation of Risk Management, Governance and Internal Control.
a) The concepts and principles relevant to assessing governance are explained and applied in accordance with the principles set out in the King Report on Corporate Governance.
b) The concepts and principles relevant to risk management are explained and applied in line with the Standards for the Professional Practice of Internal Audit
c) The concepts and principles relevant to assessing risk are explained and applied in accordance with the Practice of Internal Audit and the principles set out in the King Report on Corporate Governance
d) The concepts and principles relevant to a risk based audit approach are explained and applied in accordance with Internal Auditing practice
e) The concepts and principles relevant to the communication of risks to management and/or the audit committee are explained and applied in accordance with the requirements of the King Report on Corporate Governance
Specific outcomes for unit Ic.2
Provide information and advice on the objectives, nature and evaluation of internal control.
a) The concepts and principles relevant to internal control are explained in the Standards for the Professional Practice of Internal Audit.
b) The concepts and principles relevant to evaluating a system of internal control are assessed in accordance with Internal Audit Practice (Including the use of Risk Models, Control Self Assessments).
c) The principles relevant to the test of controls are assessed in accordance with Internal Audit Practice d) The concepts and principles relevant to specific
control problems relating to Information Systems environments are assessed in accordance with Internal Audit Practice.
communication of weaknesses in the internal control system to management and/or the Audit Committee.
Learning outcomes Assessment criteria Assessment methods
Unit Id
Internal Audit Reporting
Specific outcomes for unit 1d.1
Describe, apply and manage the process of reporting audit findings.
a) The concepts and principles relevant to the internal audit report are explained, applied and managed in line with the Standards for the Professional Practice of Internal Audit.
b) The concepts and principles relevant to due diligence reviews are explained and applied in line with the Standards for the Professional Practice of Internal Audit.
INTERNAL AUDITING 4 – MODULE 2 (IAUD421)
Scheme of work
Sections Outcome Reference Text Reference Corporate Governance,
Risk Management, Internal Control and Internal
Control Evaluation in manual and automated systems. Unit 1c.1 ISPPIA 2010, 2100, 2110, 2120, 2130, 2200 King Report on Corporate Governance
COSO & Risk Based Audit Approach
Business processes & IT – risks & controls.
Chapter 3
Chapter 4 Chapter 5, 7 The audit process of
gathering and evaluating evidence for assurance and consulting audit
engagements.
Unit 1c.1 ISPPIA 1000, 2200, 2300,
Chapter 13, 15
Companies Act Unit 1c.1 Companies Act, 2008 Process of Reporting Audit
Findings Unit 1c.2, 1d.1 ISPPIA 2300, 2400, 2500, 2600 Chapter 14 Prescribed Reading:
The following book is compulsory for this course:
Internal Auditing: Assurance and Advisory Services – 3rd edition, By Reding, Sobel,
Anderson, Head, Ramamoorti, Salamasick, and Riddle. Recommended Reading:
Internal Auditing: An Introduction – 4th Edition, P Coetzee, R du Bruyn, H Fourie, K
Plant.
Performing Internal Audit Engagements – 4th Edition, P Coetzee, R du Bruyn, H Fourie,
K Plant.
