Governance, audit and assurance
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Audit and assurance processes play a vital role in upholding business integrity. In this module, you’ll step into the role of a professional auditor to learn how they provide assurance that financial statements are a true and fair reflection of business performance. You’ll explore how corporate governance mechanisms help create an effective system of checks and balances internally, and how external and internal audit functions work together. You'll be introduced to the International Standards on Auditing and learn about the process behind setting these standards. As you gain an appreciation of the credibility that auditors bring to the reporting process, you'll be able to explain different types of assurance engagement and audit opinions given by auditors. In doing so, you’ll study theoretical principles and practical applications essential for a career in professional accounting.
What you will study
This module provides you with the competencies and skills required for carrying out audits in a professional environment. You’ll learn how audit processes work, how different types of data are examined and audited and how auditors execute audits of financial statements. The following topics will be covered.
Unit 1: An introduction to auditing and corporate governance
- Why auditing and assurance arrangements are needed
- Why auditing standards are needed
- The need for and nature of auditing and governance regulation
- Fundamental ethical principles, and how to design effective safeguards against ethical threats
Unit 2: Audit planning and risk assessment
- Why is it important to understand the entity and its context
- Considerations related to audit engagements
- Why effective audit planning and documentation is important
- Materiality, fraud, and audit risk
Unit 3: Internal control and internal audit
- The need for and components of the system of internal control
- Systems-based auditing
- How auditors evaluate and report deficiencies in an internal control system
- The concept, nature and purpose of internal audit
- The aspects of internal audit reporting
Unit 4: Audit evidence and procedures
- Understanding financial statement assertions
- How to obtain sufficient and appropriate audit evidence
- Auditing of not-for-profit organisations
Unit 5: Review and reporting
- The purpose and procedures for final review
- The concept of going concern and the responsibilities of management, directors and auditors in assessing and maintaining it
- The importance of the final audit review and the role of written representations
- Key elements of an independent auditor’s report, including key audit matters (KAM) and the different types of audit opinion
Unit 6: Emerging issues in auditing
- Various types of non-traditional audits (such as forensic audits, social and environmental audits and added value audits)
- The nature and scope of non-financial audits
- The role of the auditing profession in famous auditing and accounting scandals
- The potential impact of emerging issues such as globalisation, sustainability and technology (including AI) on the auditing profession
Professional recognition
This module forms part of the BSc (Hons) Accounting and Finance (R52) which has been granted exemptions by the Chartered Institute of Management Accountants (CIMA) towards its CGMA qualification.
Entry requirements
You must have successfully completed Financial accounting (B250) before you can register for this module. In addition, you'll be required to use a calculator and Excel spreadsheets.
Preparatory work
The module begins with a review of prerequisite knowledge and skills. If you haven't studied accounting recently, this will help refresh your understanding and build confidence before moving into new material.
What's included
You’ll have access to a module website, which includes:
- a week-by-week study planner
- module materials to practice your analytical skills
- audio and video content such as animations and podcasts
- assignment details and submission section
- online tutorial access.
Computing requirements
- Primary device – A desktop or laptop computer. It’s possible to access some materials on a mobile phone, tablet or Chromebook; however, they will not be suitable as your primary device.
- Peripheral device – Headphones/earphones with a built-in microphone for online tutorials.
- Our OU Study app operates on supported versions of Android and iOS.
- Operating systems – Windows 11 or latest supported macOS. Microsoft will no longer support Windows 10 as of 14 October 2025.
- Internet access – Broadband or mobile connection.
- Browser – Google Chrome and Microsoft Edge are recommended. Mozilla Firefox and Safari may be suitable.