UNIVERSITAS INDONESIA

FACULTY OF ECONOMICS AND BUSINESS

DEPARTEMENT OF ACCOUNTING
UNDERGRADUATE PROGRAM

SYLLABUS
Introduction to Auditing and Assurance Services (AUDITING 1)
ECAU604104
ODD SEMESTER 2019/2020

Lecturers Email address

Dr. Aria Farah Mita S.E., M.S.M [email protected]
Dr. Soemarso Slamet Rahardjo S.E., M.E. [email protected] /
Aria Kanaka S.E., M.Ak. [email protected]
Mawar Inviolata Rohana Napitupulu S.E., MBA. [email protected] /
Dudi Hadi Santoso S.E., M.Ak. [email protected]
Dr. Ludovicus Sensi W. S.E., M.M. [email protected] /
Dr. Soemarso Slamet Rahardjo S.E., M.E. [email protected]
Ahmadi Hadibroto S.E., M.Sc. [email protected]
Agung Nugroho Soedibyo S.E., M.Ak. [email protected] /
Dr. Eliza Fatima S.E., M.E., CPA. [email protected]

Subject Code ECAU604104

Subject Title Auditing 1
Credit Value 3
Year 3
Pre-requisite Financial Accounting 1
Financial Accounting 2
Role and Purposes This course is a part of Auditing and Assurance Services class which consists
of Auditing and Assurance-Introduction (Auditing 1) and Auditing and
Assurance-Intermediate (Auditing 2). This course is designed to provide an
introduction to auditing and assurance services.
Level of Proficiency in Auditing 1: Foundation
Subject Learning Upon completion of the subject, student will be able to:
Outcome I. Technical Competence: audit & assurance
Upon completion of the subject, student will be able to:
(T1) able to describe the objectives and stages involved in performing an
audit of financial statements
(T2) able to apply relevant auditing standards and applicable laws and
regulations to an audit of financial statements
(T3) able to assess the risks of material misstatements in the financial
statements and consider the impact on the audit strategy
(T4) able to explain the key elements of assurance engagements and
applicable standards that are relevant to such engagement

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 T1 and T4 will be assessed in Auditing 1; T2 and T3 will be assessed in
Auditing 2.

II. Professional Skill : Interpersonal and Communication Skills

a. Communicate clearly and concisely when presenting, discussing and
reporting in formal and informal situations, both in writing and orally
b. Active listening

III. Critical Thinking

c. Provide arguments and draw conclusions supported by appropriate
evidence
IV. Professional Value, Ethics and Attitude : Ethical Principal
d. Identify and discuss the fundamental principles of ethics including the
threats to fundamental principles and determine the appropriate
safeguards to offset the threats

Subject Week • Specific Learning Outcome Required

Synopsis/Indicative • Topic Reading
Syllabus Material
1 Student should be able to discuss Hayes ch 1
1. the nature and objective of auditing, Theo ch 1
2. responsibility of auditor and management Arens ch 1
regarding financial statements,
3. stages of an audit of financial statements
Introduction to Audit
1.1. Nature and objective of auditing
1.2. Responsibility of auditor and management
regarding financial statements
1.3 Stages of an audit of financial statements
2 Student should be able to: Hayes ch 2
4. Distinguish among different theories of auditing Theo ch 2
services
5. Understand the audit market in Indonesia and
international
6. Identify organizations that affect the external
auditing profession and the nature of their effects
The Audit Market
2.1. Theories on the demand and supply of audit
services
2.2. Mandatory audit and voluntary audit
3 Student should be able to: Hayes ch 4
7. Understand the general definition of assurance
services
8. Identify the assurance and non-assurance services
normally performed by auditor
9. Describe the five elements exhibited by all
assurance engagement
10. Understand the difference between audit, review
and compilation
Auditors’ Services
3.1. International framework of auditor services

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 3.2. Elements of an assurance service
3.3. Reasonable assurance versus limited assurance
4 Student should be able to: IAASB
11. Discuss International Standards on Auditing Handbook
12. Discuss the impact of various statutes and UU AP
regulations to auditing services UU PT No.
13. Discuss professional requirements to become 40/2007
public accountant in Indonesia PP No.
Auditing Standards and Regulation 20/2015
4.1 ISA PP No.
4.2 Statutes and regulations relevant to auditor 84/2012
profession in Indonesia
5 Student should be able to: Hayes ch 3
14. Understand the code of ethics for professional Theo ch 3,
accountant page 50-54
15. Discuss the threats to the fundamental ethical Code of
principle and determine the safeguards Ethic
Ethics for Professional Accountant (2015)
5.1. What are ethics IAPI: Kode
5.2. Code of Ethics for Professional Accountants Etik AP
5.3. Enforcement of ethical environments RNCL
6 Student should be able to: Hayes ch 6
16. Explain the components of audit risk Arens ch 9
Audit Risk Model
6.1. Components of audit risk model
7 Student should be able to: Hayes ch 5
17. Understand the objective and activity during
preliminary engagement
18. Understand the seven primary procedures involved
in the client acceptance process
19. Understand the acceptance of a new client and
acceptance by the client
Pre-planning Activities - Client Acceptance
7.1. The first step on the journey to an opinion
7.2. Evaluate the client background
7.3. Ability to meet ethical and specific competence
requirement
MID-TERM EXAM
8 Student should be able to: Hayes ch 7
20. Explain why internal controls are important to the Theo ch 6
auditor ISA 315
21. Understand what an auditor does in preliminary
planning assessments of internal control risk.
22. Characterize the differences between general
control and application IT control
Internal Control and Control Risk
8.1. Management control objectives
8.2. Control over financial reporting
8.3. Control over transaction
8.4. IT risk and control
9 Student should be able to: Hayes ch 8

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 23. Explain why analytical procedures are important to ISA 520
the auditor
24. Understand the auditor’s responsibility in term of
the use analytical procedures
25. Comprehend why and how analytical procedures
may be used at each audit phase
Analytical Procedures
9.1. Relationship among data
9.2. Type and timing of analytical procedures
9.3. Analytical review process
9.4. Analytical procedures as substantive test
10 Student should be able to: Hayes ch 6
26. State what the general objective is in planning the Theo ch
audit 8,16
27. Understand the knowledge of client’s industry and ISA 300,
business in order to assess the audit risk 315, 320
28. Understand the definition of materiality
Main Audit Concept and Planning
10.1 Planning objective and procedures
10.2 Understand the entity and its environment
10.3 Materiality
11 Student should be able to: Hayes ch 9
29. Understand and define management assertions ISA 330
30. Understand the relation between management
assertions, internal control and financial statement
31. Distinguish management assertion and audit
objectives
Auditor’s Response to Assessed Risk
11.1. Management assertion group
11.2. Risk of material misstatement at the assertion
level
11.3. Test of control
11.4. Substantive procedures
12 Student should be able to: Hayes
32. Define auditing evidence ch10
33. Know the definition of evidence in an audit and ISA 500
legal sense
34. Describe the components of and the meaning of
“sufficient & appropriate audit evidence”
Audit Evidence
12.1. Legal evidence versus audit evidence
12.2. Sufficient and appropriate audit evidence
12.3. Seven evidence-gathering techniques: inquiry,
observation, inspection, reperformance,
recalculation, confirmation, and analytical
procedures.
13 Student should be able to: Hayes Ch
35. Understand the content and element of the 12
Auditor’s Report ISA700,705
36. Distinguish between unmodified opinion and
modified opinion

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 Introduction to Audit Reports
13.1. Basic elements of the Auditor’s Report
13.2. Types of report expressing audit opinion
14 Wrap up
FINAL EXAM
Teaching/Learning Teaching method uses active lecturing and class discussions, in which
Methods students achieve the study objectives by discussing the topics under the
guidance of the lecturer. Sessions 1 to 13 start with group presentation and
then continue with discussion led by the lecturer

Each student is required to prepare a paper submitted at the mid-term

exam. Student should select an ethical case involving auditors in the last 3
years, identify the threat(s) in the case and analyze the appropriate
safeguards that should have been applied to reduce the threat(s).

In session 14, lecturers may select cases from textbook pertaining to topics
covered in session 8-13 and discuss with students.

Assessment Specific assessment methods/tasks % Intended Learning Outcome

Methods to be Assessed
T1 T4 a b c d
Continuous Assessment 100
GROUP 20
Weekly paper (10%) √
Group presentation (10%) √ √ √
INDIVIDUAL 80
Mid-term Exam (30%) √ √ √
Final Exam (30%) √
Participation & Discussion (10%) √ √
Individual paper (10%) √ √ √

Reading Materials Required Reading:

1. Hayes, Wallage, and Gortemaker, Principles of Auditing – an Introduction
to International Standards on Auditing, 3rd Edition (2014), Pearson
Education Limited (Hayes)
2. Tuanakotta, Theodorus M, Audit Kontemporer, Penerbit Salemba Empat,
2015 (Theo)
3. Steven Colling, Interpretation and Application of International Standards,
John Wiley & Sons, 2011 (Colling)
Supplementary Reading:
4. Undang Undang Akuntan Publik, 2011 (UU AP)
5. Handbook of International Quality Control, Review, Auditing, Other
Assurance, and Related Services Pronouncements, 2016-2017, IAASB
(Handbook IAASB)
6. Arens, Alvin, Beasley, Elder, Auditing and Assurance services – an
integrated approach. Global Edition. Pearson Education Limited 2014
(Arens)
7. Responding to Non-Compliance with Laws and Regulations, IESBA, 2016
(RNCL)

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