Auditing II: The Practice of Auditing

Go to Course: https://www.coursera.org/learn/auditing-part2-the-practice

Introduction

### Course Review and Recommendation: Auditing II: The Practice of Auditing **Introduction to the Course:** The course "Auditing II: The Practice of Auditing" on Coursera serves as a comprehensive follow-up to its predecessor, "Auditing I: Conceptual Foundations of Auditing." This course delves deeper into the practical aspects of auditing, providing learners with robust frameworks and methodologies that inform audit professionals in their assessments of risks and evidence in the modern business environment. Whether you are an aspiring auditor, a seasoned professional looking to sharpen your skills, or a business leader wanting to understand the audit process better, this course offers valuable insights. **Course Structure and Content:** The course is structured as a series of thoughtfully designed modules, each focusing on key elements of the auditing process: 1. **Orientation:** The course starts with an orientation module that introduces participants to the learning environment and necessary technical skills. This is crucial for creating a smooth learning experience. 2. **Module 1 - Strategic Analysis of a Client and Its Business Processes:** Diving into strategic systems auditing (SSA), learners are exposed to the fundamental principles of how audits can align with overall business risks and strategies, thereby enriching their understanding of the audit context. 3. **Module 2 - Audit Evidence and Triangulation:** This module emphasizes the concept of triangulation, teaching students how to evaluate audit evidence through three core sources. The use of a real-world case, such as the WorldCom scandal, adds a practical perspective to theoretical concepts. 4. **Module 3 - Strategic Systems Auditing and Internal Controls:** Focusing on internal controls, this module explores how various internal controls affect audit strategies. Understanding the interplay between substantive and reliance strategies is crucial for effective audit planning. 5. **Modules 5 and 6 - Verification of Management Assertions (Attribute and Unit Sampling):** These modules delve into the complexities of statistical sampling, exposing learners to both non-statistical and statistical methods. Knowledge of attribute and unit sampling techniques is essential for ensuring the reliability of audit outcomes. 6. **Module 7 - Fraud Risk Assessment:** This critical module addresses one of the most pressing challenges in auditing—assessing fraud risk. By highlighting the importance of professional skepticism and wise thinking, students learn how to enhance their judgment in adversarial situations. 7. **Module 8 - Completing the Attest Engagement:** The course culminates with an exploration of the completion of attest engagements, effectively bridging theoretical concepts with professional practice. **Recommendation:** I highly recommend "Auditing II: The Practice of Auditing" for anyone interested in the field of auditing. The course strikes a balance between theory and application, making it suitable for novices and seasoned auditors alike. The inclusion of real-life examples and case studies reinforces learning and aids in the retention of complex concepts. **Key Benefits:** - **Comprehensive Learning Experience:** Building directly on the foundations laid in Auditing I ensures that participants are adequately prepared for more intricate topics. - **Expert Instruction:** Guided by knowledgeable instructors, learners benefit from their expertise and real-world insights. - **Flexible Learning Environment:** Being an online course, it provides the flexibility to learn at one’s own pace, making it accessible to professionals balancing multiple commitments. **Conclusion:** Enrolling in "Auditing II: The Practice of Auditing" is a strategic move for anyone seeking to enhance their auditing skills and knowledge. With its clear structure, in-depth modules, and practical orientation, this course equips learners with essential tools and insights needed to navigate the complex landscape of modern auditing effectively. Don’t miss the opportunity to advance your career and deepen your expertise in auditing—consider taking this course on Coursera today!

Syllabus

About the Course

In this module, you will become familiar with the course, your instructor and your classmates, and our learning environment. This orientation will also help you obtain the technical skills required to navigate and be successful in this course.

In this module, you will be introduced to the concept of strategic systems auditing (SSA). First, you will learn about the SSA approach and how it impact the audit. Then, you will learn about strategic analysis and strategic business risks.

In this module, you will be introduced to the concept of triangulation, which looks at three fundamental sources of audit evidence. First you will learn about the three sources of evidence, which are entity business states, management information intermediaries, and management business representations. Next, you will learn how evidence triangulation can be applied to the WorldCom scandal.

In this module, you will be introduced to the concept of internal controls. First, you will learn about different components of internal controls and how they impact the audit. Next, you will learn about different audit strategies around controls: Substantive strategy vs reliance strategy. Lastly, you will learn about the categories of internal control weaknesses.

In this module, you will be introduced to the concept of sampling. We will cover non-statistical and statistical sampling, but we will emphasize a form of statistical sampling called attribute sampling. You will learn about sampling risk as well as about three important determinants of sample size: risk of incorrect acceptance, tolerable error, and expected error. You will learn that population size actually has a small effect on sample size, contrary to lay theories the position population size as one of the most important determinants of needed sample sizes. You will also learn about key steps involved in planning and performing attribute sampling, the critical role of professional judgement during many of these steps, and you will learn about some specific audit procedures for verifying management’s assertions related to their controls.

In this module, you will continue to learn about verifying management’s assertions. First, you will learn about unit sampling, which is one of the most common statistical sampling approaches. Then you will learn about the differences between unit sampling and non-statistical sampling. Next, you will learn about planning, picking, and evaluating the results of the sample. You will also learn about different types of sample selections: probabilistic and non-probabilistic. Lastly, you will reinforce your conceptual understanding by working through a unit sampling example.

In this module, you will learn about fraud risk assessment, which is one of the most critical portions of the audit. First, you will learn about wise thinking and why it is important to have professional skepticism when it comes to fraud. You will learn about wise thinking from several recent studies. You will first learn about a study that highlights the importance of wise thinking in auditing. Then you will learn about two additional studies that show the factors that influence auditors’ judgement and management’s behavior. Lastly, you will learn about a study that shows how auditors’ strategic thinking influences their selected audit procedures.