87396 - Auditing

Learning outcomes

At the end of the course the student knows the main rules and criteria to be applied in preparing financial statements and the accounting of the main transactions of the entity in accordance with Italian General Accepted Accounting Principles. The student is able to understand the auditing standards and to analyse and assess the internal control, arrange and manage the audit procedures. The student is able to plan, arrange and manage the auditing process as well as to validate the data included in the accounting system, verify the supporting documentation and perform the procedures required by article 2409-ter of the Italian Civil Code.

Course contents

Part 1 – The financial statements and the national accounting standards (OIC):

 

The first part of the course will be dedicated to national accounting standards (OIC):

• The financial statements according to the Italian civil law considering the European Union accounting law (OIC 11);

• The valuation criteria of the assets according to civil law and national accounting principles;

• Tangible fixed assets (OIC 16), intangible fixed assets (OIC 24), provisions (OIC 31);

• Inventories (OIC 13) and work in progress (OIC 23);

• Receivables (OIC 15) and prepayments (accruals) and deferrals (OIC 18);

• Debts (OIC 19); Pension, postretirement and other benefits and provisions (OIC 31);

• Cash and banks (OIC 14), securities (OIC 20) and Investments in subsidiaries and affiliates (OIC 21);

• Equity (OIC 28);

• Income statement (OIC 12). An example of accounts classification in the PL;

• Derivative financial instruments (OIC 32): introductory notes;

• Explanatory Notes and Management report. A practical case.

 

Part 2 – Audit of the financial statements: general concepts and practical application:

 

• The audit:

  • Introduction of the course and operational details;

  • Introduction to auditing;

  • The auditing and the check of the accounts according with the Italian accounting standards;

  • The principles of conduct in auditing.

• The auditing process:

  • Acceptance of the engagements;

  • The planning activities;

  • The definition of the work program and audit strategy;

  • Execution of the audit tests;

  • Evaluation of errors and proposed adjustments;

  • Opinion (audit report).

• Some fundamental concepts:

  • The Audit Risk;

  • The materiality;

  • Evidence and documentation;

  • The review of the main business cycles and the financial statements area connected to them:

    • Audit of the sales cycle;

    • Audit of the purchasing cycle;

    • Audit of the fixed assets cycle;

    • Audit of the inventory cycle;

    • Audit of the monetary cycle and others;

    • Completion of the engagement and opinion (audit report);

    • Exercises.

Readings/Bibliography

The slides of lessons will be provided.

Accounting standards (OIC).

Auditing standards (ISA).

Assessment methods

Written exam (multiple choice and exercises)

Teaching tools

Orario di ricevimento

Consulta il sito web di Andrea Callozzo Cifalà

Office hours

See the website of Andrea Callozzo Cifalà

See the website of Sara Balducci