ØABED4300 Risk Management Course description

The subject covers methodology of financial statement audits and conduct of external auditors based on professional standards.

Econometrics, Corporate Finance, and Financial Markets.

None

After completing the course, the student should have the following overall learning outcomes defined in terms of knowledge, skills and general competence:

Knowledge

The student has

• in-depth knowledge of the audit process (client acceptance, planning, understanding the entity and its risks, evaluation of internal controls, execution of testing, evaluation of audit evidence, completing the audit, and audit reporting)
• an understanding of the content of professional standards (such as the International Standards on Auditing (ISAs), IESBA code of ethics, and the Norwegian Auditors Act)
• an understanding of supply and demand of assurance services, financial reporting quality, and regulatory oversight of the audit profession
• knowledge of the differences between financial statement audits, attestations, and assurance of sustainability reports

Skills

The student can

• plan an audit, including determining materiality
• assess the risk of material misstatement of the financial statements, including assessing the risk of fraud
• identify relevant internal controls and evaluate evidence of test of controls
• evaluate the nature, timing and extent of executed audit procedures and obtained audit evidence
• express an appropriate audit opinion, including taking into account going concern considerations

General competence

The student exercises professional skepticism and conducts audits in line with professional standards

The course is taught in plenary lectures, and students work on exercises and discuss cases in groups and plenary sessions.

The following coursework requirements must have been approved in order for the student to take the exam:

• Coursework 1: Students have to do three to four assignments related to the material taught in class in groups of up to five people. Each assignment has a maximum amount of 10 pages. The assignments comprise exercises, short case studies, and small empirical analyses to deepen the understanding of the theories and apply them to real-world problems. The data projects can be carried out in Excel.

All required coursework must be completed and approved by the given deadline in order for the student to take the exam. If one or more coursework requirements have not been approved, the student will be given one opportunity to submit an improved version by a given deadline.

The following aids are permitted:

• Calculator (see regulations for the use of calculators in the programme description)
• One dictionary (either first language-English/English-first language or English/English)

Students will be provided access to a pdf file on the exam computer that contains the following content:

• IAASB Handbook of International Quality Control, Auditing, Review, Other Assurance, and Related Services Pronouncements (Volume I and Volume II)
• Norwegian Auditor Act (in English)
• The Norwegian Code of Practice for Corporate Governance (in English)
• IESBA Handbook of the international code of ethics for professional accountants

The following aids are permitted:

• One dictionary (native language-English/English-native language or English-English).
• Calculator (see regulations for the use of calculators in the programme description)

The exam papers are assessed by one internal and one external examiner.

At least 25% of the exam papers will be assessed by two examiners. The grades awarded for the papers assessed by two examiners form the basis for determining the level for all the exam papers.

ØARR4100 Financial Accounting and ØARR4000 Business Law