Review and Practice
Introduction to Advanced External Auditing
Course description and purpose
Advanced External Auditing [AU2] is the second of three courses in the auditing stream in the CGA Program of Professional Studies. AU2 elaborates on the concepts and procedures of external auditing introduced in External Auditing [AU1] or an equivalent course. AU2 also introduces you to some of the changes that the auditing profession is facing and the reasons for these changes. A combination of AU1 and AU2 provides a solid academic foundation for auditing within the practice of public accounting in Canada. As with AU1 , the emphasis in this course is on the external audit as opposed to the management or internal audit. The latter is dealt with in Internal Auditing & Controls [MU1] . The primary objective of an external auditor is to render an opinion on the fair presentation of the financial statements, whereas a management auditor is primarily concerned with the risk management, internal controls, and governance processes of the organization. Regardless of these differences, many of the procedures, standards, and strategies are common to both types of audits. The CGA Program of Professional Studies is designed to help you develop the competencies that are essential to a professional accountant. In AU2 , which focuses on external auditing and assurance engagements, you develop and strengthen competencies related to determining whether to accept an assurance engagement; evaluating the assurance needs of clients; planning and performing the engagement; and interpreting, documenting, and reporting the results. You also develop competencies related to evaluating and advising on accounting policies and procedures, in accordance with professional standards. Course work focuses on tasks such as identifying and analyzing risk factors and measures to mitigate risk using technological tools in the workplace evaluating and reporting on internal control systems preparing reports Finally, you continue to develop important professional qualities and skills in the areas of team leadership and development, staff coaching and training, problem solving, communication, client-focus skills, and professional and ethical judgment. For information on how the AU2 competencies relate to the course topics, see the AU2 Examination Blueprint under the Exam Preparation tab.
Foundation courses: As a PACE level course, AU2 draws on knowledge you have obtained from several other subjects. It assumes that you have a good grounding in intermediate financial accounting topics, quantitative methods, and management information systems. This knowledge may have been gained from the CGA courses: Accounting Theory & Contemporary Issues [AT1] , External Auditing [AU1] and Financial Accounting: Consolidations & Advanced Issues [FA4], and Managing Information Systems [MS1] or their equivalent in other programs. You will find descriptions of these courses in the CGA-Canada Syllabus. The Foundation review contains summaries of basic auditing concepts, prerequisite course module summaries and a comprehensive case. You may find this optional self-study helpful to reinforce your prior learning. Mathematics: You are expected to have a sound understanding of basic mathematics and its application in the business context; the expected level of knowledge can be gained from any standard business mathematics text. Ethics: An understanding of the principles of ethics and how ethical principles are addressed in
the profession of accounting is an essential part of the CGA Program of Professional Studies. The Ethics Readings Handbook [ERH] has been developed as a study resource in this area and is provided electronically through a link in the reference library of the Resources tab. In AU2, it will be assumed that you have become familiar with the following material from ERH : Section A:...