Course Description

Apply the concepts and procedures for external auditing. Develop an audit plan, identify different types of audit sampling and evaluate an audit opinion.

Vocational Learning Outcomes

This course provides the opportunity for you to achieve the following outcomes:

364 - Business Admin - Accounting

VLO 2 Prepare and present financial statements, reports and other documents in compliance with Canadian Generally Accepted Accounting Principles for sole proprietorships, partnerships and private enterprises. (T, A)
VLO 6 Analyse and evaluate, within a Canadian context, the impact of economic variables, legislation, ethics, technological advances and the environment on an organization’s operations. (T, A)
VLO 7 Analyse and evaluate an organization's internal control system, taking risk management into account. (T, A)
Assessment Levels —T: Taught A: Assessed R: Reinforced 

Essential Employability Skills

This course contributes to your program by helping you achieve the following Essential Employability Skills:

EES 1 Communicate clearly, concisely and correctly in the written, spoken and visual form that fulfills the purpose and meets the needs of the audience. (T, A)
EES 2 Respond to written, spoken or visual messages in a manner that ensures effective communication. (T, A)
EES 4 Apply a systematic approach to solve problems. (T, A)
EES 5 Use a variety of thinking skills to anticipate and solve problems. (T, A)
EES 7 Analyze, evaluate and apply relevant information from a variety of sources. (T, A)
EES 9 Interact with others in groups or teams in ways that contribute to effective working relationships and the achievement of goals. (T, A)
EES 10 Manage the use of time and other resources to complete projects. (T, A)
Assessment Levels —T: Taught A: Assessed R: Reinforced 

Course Learning Outcomes / Elements of Performance

When you have earned credit for this course, you will have demonstrated the ability to:

1. Introduce auditing, and auditors’ role and responsibilities

  • Explain the objectives of an audit of financial statements
  • Compare and contrast the internal and external audit
  • Explain the difference between audit, review, and compilation engagements
  • Define information risk and explain how auditing helps reduce information risk
  • Describe the roles and responsibilities of auditors, both legally and professionally, and explain the role ethics has on the auditor’s responsibilities
  • Describe Generally Accepted Auditing Standards (GAAS) and their implications to auditors
  • Explain the different types of audit reports and the different components of the audit report

2. Outline the key components of the pre-planning and planning stages of an audit

  • Describe the main activities in the pre-planning stage and factors to consider when deciding whether to accept a new audit engagement
  • Describe the consideration of fraud and error in audit planning, and the consequences of illegal acts
  • Identify and explain audit planning considerations and the activities involved in audit planning, including general analytical procedures
  • Describe and calculate materiality for an audit
  • Explain the components of audit risk, its effect on the audit plan and the role internal control plays on risk
  • Identify the different phases of internal control evaluation for planning an audit, and explain the GAAS requirements for documenting internal control

3. Explain the use and collection of audit evidence

  • Identify the procedures and sources of information auditors can use to obtain evidence
  • Determine what entails sufficient and appropriate audit evidence
  • Describe the purpose and key elements of audit working papers
  • Explain the difference between compliance and substantive testing
  • Explain the use of sampling in the audit, including both statistical and non-statistical
  • Explain sampling and non-sampling errors
  • Describe sampling procedures in the context of substantive testing and in testing for internal controls
  • Determine sample size and the process of selecting the sample
  • Describe how the auditor evaluates the results of a test

4. Describe the stages of completing an audit, and the use of professional judgement to form an audit opinion and issue the audit report

  • Explain the balance sheet approach to auditing
  • Describe the analytical procedures when auditing cash, inventory and property, plant and equipment
  • Describe the analytical procedures when auditing revenue and expenses
  • Explain how net income is indirectly audited through the balance sheet approach
  • Demonstrate what is involved in the final evaluation of the audit in forming an audit opinion, including the application of professional judgement
  • Identify when an auditor would issue an audit report containing an unmodified opinion, a qualified opinion, an adverse opinion or a disclaimer of opinion

Pre-defined Evaluation / Earning Credit

The following list provides evidence of this course's learning achievements and the outcomes they validate:

In-Class Activities (10%)

Validates Outcomes:  CLO 1, CLO 2, CLO 3, CLO 4, EES 1, EES 2, EES 4, EES 5, EES 7

    364  :   VLO 2, VLO 6, VLO 7

Assignment(s) (35%)

Validates Outcomes:  CLO 3, CLO 4, EES 1, EES 4, EES 5, EES 7, EES 9, EES 10

    364  :   VLO 2, VLO 6, VLO 7

Midterm Exam(s) (25%)

Validates Outcomes:  CLO 1, CLO 2, EES 1, EES 2, EES 4, EES 5, EES 7

    364  :   VLO 2, VLO 6, VLO 7

Final Exam (30%)

Validates Outcomes:  CLO 1, CLO 2, CLO 3, CLO 4, EES 1, EES 2, EES 4, EES 5, EES 7

    364  :   VLO 2, VLO 6, VLO 7

Experiential Learning

This course currently has no Experiential Learning

Learning Resources

Required Textbook: Messier(CDN), Auditing & Assurance Services, 4ce

Recommended Resource: CPA Canada Handbook - Assurance
https://edu-knotia-ca.ezproxy.mohawkcollege.ca/Knowledge/Home.aspx?productID=1

Delivery Format

2 hours in class and 1 hour blended

Prior Learning Assessment and Recognition

Students who wish to apply for Prior Learning Assessment and Recognition (PLAR) need to demonstrate competency at a post-secondary level in all outlined course learning outcomes. Evidence of learning achievement for PLAR candidates includes:

  • Portfolio
  • Challenge Exam

Course Related Information

See Learning Plan for specific course information.

Program Information

College Related Information

Mohawk College is committed to creating a learning community where all students and staff experience a safe and respectful work and study environment. College policies and procedures respect individual rights and responsibilities, promote accountability, fairness and due process. Students are expected to familiarize themselves with Mohawk College's Policies and Procedures accessible through the College website https://www.mohawkcollege.ca/about-mohawk/leadership-and-administration/policies.


Mohawk College is committed to the implementation of Universal Design for Learning (UDL) in support of equity, inclusion and accessibility, as well as providing compliance elements for the Accessibility for Ontarians with Disabilities Act within the college community. Mohawk College courses will employ UDL principles and/or initiatives. For more information on the specific UDL elements included in this course, contact the educator. For more information review the UDL webpage at https://www.mohawkcollege.ca/centre-for-teaching-learning-innovation/teaching-effectively/universal-design-for-learning.


Students with permanent or temporary disabilities who require academic accommodations are encouraged to register with Accessible Learning Services (ALS). Documentation outlining the functional limitations of disability is required; however, interim accommodations pending receipt of appropriate documentation is possible. All documentation is kept confidential in the office of ALS. For more information review the ALS webpage at https://www.mohawkcollege.ca/accessible-learning-services, or contact ALS at als@mohawkcollege.ca or 905-575-2122. To learn more about UDL and accommodations review https://www.mohawkcollege.ca/accessible-learning-services/accommodations/accommodation-guides/communicating-use-of-accommodations-when-using-udl.


Students enrolled in Mohawk/McMaster collaborative programs are protected under McMaster University's policies and procedures outlined in General Academic Regulations, McMaster Undergraduate Calendar, and in McMaster's Academic Integrity Policy http://www.mcmaster.ca/academicintegrity/. Please be advised that all policies and procedures are subject to change.


This course may use online proctoring software for assessment(s) to uphold academic quality and maintain academic integrity where deemed required by the academic area. Additional information will be provided by the educator, in MyCanvas, if a remote proctoring tool is being used. Refer to Mohawk College’s Student Online Proctoring Guide to learn more at https://ats.mohawkcollege.ca/hc/en-ca/articles/30869042051220-Online-Proctoring-Guide. In addition, to maintain academic integrity student submissions may be assessed using Turnitin. To learn more review https://www.turnitin.com/. 


A minimum grade of 50% is required as a course pass at Mohawk College. Please be aware, that a higher passing grade (minimum 60% or 70%) may be required if this course is taken as part of certain diploma or certificate programs. Consult the academic department for details. Additionally, if you are taking this course as part of a diploma or certificate program, be aware that you need an overall weighted grade point average (WGPA) of at least 60% to graduate. Graduation requirements are higher for some programs. Please check requirements with your department. For more information on program promotion and graduation requirements review https://www.mohawkcollege.ca/registration-and-records/grading-evaluation/grading-system.


Educators are required to review Emergency Lockdown procedures and Emergency Evacuation Procedures, including Evacuation and Lockdown procedures for students with disabilities, at the start of every course and each semester. Additional information is provided to educators in the College Emergency Safety and Security Procedures Booklet or online through Human Resources within MyMohawk.