ØABED4500 Management Control Systems Course description

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.

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

• ability to apply a broad set of perspectives on human behavior in evaluation of the effects of management control levers
• advanced insight into the most important issues relating to elements of management control systems
• very good understanding of the trade-offs associated with different performance measures
• strong capability for critical reflection regarding the relationship between formal reward systems and other forces driving internal and external motivation

Skills

The student is capable of

• applying motivation theory, principal-agent theory, accounting concepts and microeconomic insights to complex management control problems in companies
• relating the choice of management control approaches to the company's strategies at group and entity level

General competence

The student

• can reflect on ethical and moral dilemmas related to management control and strategy
• has developed analytical competence further

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

• Coursework 1: One written assignment must be handed in by a set deadline during the semester. The scope of the assignment (number of pages) varies depending on the nature of the assignment.

All required coursework must be completed and approved by the given deadline in order for the student to take the exam. If the coursework requirement has not been approved, the student will be given the opportunity to submit an improved version by the given deadline.

The exam in the course is a supervised exam of 5 hours.

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

Grade scale A-F

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

Einar Belsom

Students who have the subject ØABED3400 Management Control Systems in their bachelor's degree are not allowed to take this course.