INSTITUTE OF ACCOUNTANCY ARUSHA

MODULE GUIDELINES

1. General Module Information

PROGRAM : BAIT- II – 2023/24
MODULE : PRINCIPLES OF AUDITING.
CODE : AIU 07301
SEMESTER : III
CONTACT HOURS : 4 HOURS/ WEEK
FACILITATOR : MR. ABDALLAH MTANGANAKI & CPA. GERALDINA TARIMO

2. Module Description

The world has different kinds of operations of which the knowledge and skills of the techniques used to
audit these organisations. It is important to checking that the financial statements for the different kinds
of entities are presenting a fair representation of what transpired during the year. This includles an
understanding of the generally concept of auditing, concepts of nature purpose and scope of auditing
and internal control, along with the required conduct for an auditor in public and private organizations.

3. Course objectives
After completion of this course, students will be able to:
1. Express an understanding of audit in private and public sector organizations.
2. Obtain knowledge of the professional ethics required of auditors.
3. Demonstrate an understanding of the legal environment under public sector audit
4. Plan an audit and learn how to design an audit program.
5. Be able to explain internal control, the structure of internal control, and describe safeguards
over assets and records.
6. Demonstrate and understanding of the reporting requirement of an auditor.

4.0 Module contents

 Topic Sub-topics Objectives Learning Assessment Tasks/Activities
outcome Methodology

4.1 Introduction to 4.1.1 The meaning At the end of Knowledge of Discussion, 1. To provide
Auditing this topic auditing in an lectures, self- Detail account of
of Auditing
students organisation test questions. the concept of
4.1.2 Nature, should be and its Auditing
Purpose and Scope able to purpose.
of Audit explain the 2. Clear account of
meaning of the forms of Audit;
4.1.3 The forms of
Audit
auditing, the
forms of 3. A proper
4.1.4 Principles and auditing account of the
concepts of together with principles and
materiality, true and the principle concept used in
fair, presentation concepts. Auditng;
and disclosure, and
reasonable
assurance.

References
• NBAA, 2019, Auditing Principles and Practice Study Text. NBAA, Dar-es-salaam, Tanzania.

• Richiute, David. 2005. Auditing 8th Edition: South-Wesley, College Publishing.

• Sylvia, T. & King’ori, J. 2013. Auditing Theory and Practice.

4.2 Professional ethics 4.2.1 Professional At the end of Apply the Discussion, 1. Explain the
and auditing ethics and this topic professional lectures, professional ethics
regulatory professional code students ethical code Seminar
framework. of conduct should be of conduct and self-test 2.Identify threat to
able to apply and clearly questions. adherence of the code
the identify the of conduct and
4.2.2 Pre- fundamental threats to provide safeguards.
engagements’ ethical independence
professional
principles and together with 3.Disucc the Pre-
etiquette.
a clear a clear engagement
understanding understanding professional etiquette
4.2.3 The of the of the
Engagement letter procedure Auditor’s 4. Clear
followed in appointment understanding of the
4.2.4. Appointment, the process Engagement letter
Dismissal and appointment and it contents
Resignation of an of an Auditor
Auditor and 5. Discussion on the
acceptance of process of
4.2.5. The Rights, an appointment to
duties, and powers engagement. dismissal or
of an auditor resignation of an
auditor.

6. Clear explanation of
the Rights, duties, and
powers of an auditor.

References • IFAC. Handbook of International Auditing Assurance and Ethics Pronouncements: IFAC

• NBAA, 2019, Auditing Principles and Practice Study Text. NBAA, Dar-es-salaam, Tanzania.

4.3 The Audit Work 4.3.1. Audit At the end of The planning Discussion, 1.Explain the audit
Plan planning and audit this topic and risk lectures, work plan and risk
program (uses and students assessment seminar/revi assessment;
design) should be process during ew
able to plan an audit and questions 2.Meaning of internal
4.3.2 Risk how to
audit and and self-test control;
assessment and conduct audit
conduct a questions.
audit risk under
management. proper audit 3. Explain the
risk computerised
environment.
procedure to review
4.3.3. Internal assessment. internal control;
control system
(features, 4. Clear
objectives, understanding of audit
management under computerised
responsibility and environment.
their inherent
 limitation)

4.3.4. Audit in
computerized
Environment.

References • Glove, J. 2006. Auditing and Assurance, 4th Edition: McGraw.

• Hall, L. 2006. Information System Auditing and Assurance: Academic Internet Publisher.

• Sylvia, T. & King’ori, J. 2013. Auditing Theory and Practice.

4.4 Audit Evidence 4.4.1 Nature and At the end of The nature of Discussion, 1. Discussion of the
source of Audit this topic audit evidence lectures, nature and sources of
Evidence students and how it is seminar/revi audit evidence.
should be collected. ew
4.4.2. Audit able to collect questions
sampling 2.select the
audit and self-test
evidence and questions. appropriate Method of
4.4.3. Reliance on audit sampling
the works of other use audit
(other experts, sampling
procedures. 3. Clear
auditor and internal
understanding of how
auditor
and when an auditor
4.4.4 Audit working can use the expertise
papers. of other.

4. The importance of
Audit working papers.

References • NBAA, 2019, Auditing Principles and Practice Study Text. NBAA, Dar-es-salaam, Tanzania.
• Glove, J. 2006. Auditing and Assurance, 4th Edition: McGraw.

4.5 Public Sector Audit 4.5.1. The role of At the end of Understandin Discussion, 1.The role of CAG
Controller and this topic g of the legal lectures, and IAG;
Auditor General students procedure seminar/revi
(CAG) & Internal should be around public ew 2.Explanation of the
audit general (IAG) able to sector audit questions legal environment in
explain the and self-test public sector;
4.5.2. Legal legal questions.
environment in environment 3.Understaning of the
which CAG around public specific consideration
operates sector audit. for public sector audit.
(Appointment,
function, legal
mandate and
resignation)

4.5.3. Legal
environment in
 which IAG
operates
(Appointment,
function, legal
mandate and
resignation)

4.5.4. Specific
considerations for
the public sector
audit

References NBAA, 2019, Auditing Principles and Practice Study Text. NBAA, Dar-es-salaam, Tanzania

4.6 Reporting on Audit 4.6.1. The forms of At the end of Prepare an Discussion, 1. Explanation on the
Works Audit reports and this topic outline of the lectures, forms of audit reports
their format. student audit report seminar/revi
should be ew 2. Explanation of the
4.6.2. Reason for able to questions reasons for
modification of an
Prepare and self-test modification of an
Audit opinion.
understand questions. audit opinion.
an audit
report. 3. Prepare an outline
of the audit report

References • NBAA, 2019, Auditing Principles and Practice Study Text. NBAA, Dar-es-salaam, Tanzania.
• Glove, J. 2006. Auditing and Assurance, 4th Edition: McGraw
• Mhilu, F. 2004. Audit, Assurance and related Services.

Reference Textbooks
• NBAA, 2019, Auditing Principles and Practice Study Text. NBAA, Dar-es-salaam, Tanzania.
• Sylvia, T. & King’ori, J. 2013. Auditing Theory and Practice.
• Beasley, Mark, ElderRundal, Alvin, Arens. 2005. Auditing and Assurance Services, US Edition: Prentice -
Hall.
• Boynton, William. 2007. Modern Auditing ,8th Edition: John Wiley and Sons Inc.
• Glove, J. 2006. Auditing and Assurance, 4th Edition: McGraw.
• Hall, L. 2006. Information System Auditing and Assurance: Academic Internet Publisher.
• IFAC. Handbook of International Auditing Assurance and Ethics Pronouncements: IFAC
• Knapp, Michael. 2006. Contemporary Auditing, Real Issues and Cases, 6th Edition: Southwestern College
Publishing.
• Louwers, Timoths, Ramsay, Robert, Sinason David, Strawser Jerry.2006. Auditing and Assurance Services:
Academic Internet Publisher.
• Mhilu, F. 2004. Audit, Assurance and related Services.
• Richiute, David. 2005. Auditing 8th Edition: South-Wesley College Publishing
• William,Messier.2002.Auditing Assurance Services a Systematic Approach, Irwin/McGraw
5. ASSESSMENT PLAN
5.1 Enabling and sub-enabling outcomes
Enabling outcome Sub-enabling outcome
5.1 A proper understanding of the concept of 5.1.1 Knowledgeable discussion of the concept of
Auditing and the application of the auditing Auditing and it key principles
principle in planning and conducting of auditing in
private and public Organizations.
5.1.2 Understanding of the Professional ethics
and auditing regulatory framework.

5.1. 3 Clear knowledge of Audit planning, Risk

assessment, Internal control and audit under
computerised environment.
5.1.4. An understanding of the legal environment
under public sector audit.

5.1.5. Knowledge of the legal environment under

public sector audit.

5.1.6 . Ability to read and understand an audit

report.

5.2 Specifications of competences

Sub-enabling outcome and related tasks Competence to be No. of tasks

assessed provided
under CA
and SE
CA SE
40% 60%
Wider attributes
understanding
Knowledge
skills

Sub-enabling outcome

5.2.1 Knowledgeable discussion of the concept of Auditing and its key principles.
a) The meaning of Auditing

b) Discussion on the Nature of Auditing

c) Discussion on the Scope of Auditing

d) Explain the form of Audit
e) Discussion on the Principles and concepts used in Audit

5.2.2 Understanding of the Professional ethics and auditing regulatory framework.

a) Discussion on the Professional ethics and professional code
of conduct

b) Identify threat to adherence of the code of conduct and

provide safeguards.
c) Discus the Pre-engagement professional etiquette
d) Clear understanding of the engagement letter and its
contents.

e) Discussion on the process of appointment to dismissal or

resignation of an auditor
f) Clear explanation of the Rights, duties, and powers of an
auditor
5.2.3 Clear understanding of Audit planning, Risk assessment, Internal control and audit under
computerized environment.

a) Explain the audit work plan and risk assessment.

b) Differentiation between audit Plan and audit program

c) Meaning of internal control.

d) Explanation on the procedure to review internal control

e) Clear understanding of audit under computerized

environment.
5.2.4 . Apply the concepts of audit sampling when collecting audit evidence.

a) The nature and sources of audit evidence.

b) Select of the appropriate Method of audit sampling

c) Auditor’s reliance on the work of others

d) Audit working papers
5.2.5 . An understanding of the legal environment under public sector audit.

a) The role of CAG and IAG;

b) The legal environment under public sector audit.
c) Specific consideration for public sector audit.

5.2.6 Discuss the audit report.

a) The Forms of audit reports

b) The reasons for modification of an audit opinion.
c) Prepare an outline of the audit report

5.3 Delivery Methods and Learning materials

The delivery methodologies include, group presentation, group discussion and lectures. In additional,
experts from workplaces may be invited to deliver lectures on specific areas relevant to the module.
Major learning materials to be used include relevant textbooks and lectures notes.

5.4 Integrated Method of Assessment

The assessment instruments to be used in this module include continuous assessment (class tests,
Quiz, individual and group assignments) and end of semester examination.

Assessment Method
Coursework 40%
End of semester examination 60%

Module Facilitator Contact:

MR. Abdallah Mtanganaki

0659-687422
CPA. Geraldina Tarimo
0716-264124