The course aims to provide a theoretical and operational overview of the processes of financial auditing. The objective is to investigate the main methods of financial auditing in use in the business community, based on national and international audit standards, in order to improve a critical approach to their use, also in relation to the specific purposes of the audit and to the peculiar characteristics of each methodology.
The course aims to provide a concrete preparation on the logic and techniques of financial auditing, aiming to encourage the maturation of specific skills for professionals, who will be called to deal with accounting audits and control of company processes, even with reference to companies that require the application of specific verification procedures due to the peculiar characteristics of their business, such as listed companies, banks and insurance companies.
The course aims to provide a concrete preparation on the logic and techniques of financial auditing, aiming to encourage the maturation of specific skills for professionals, who will be called to deal with accounting audits and control of company processes, even with reference to companies that require the application of specific verification procedures due to the peculiar characteristics of their business, such as listed companies, banks and insurance companies.
Curriculum
teacher profile teaching materials
Purpose and subject of the audit. Setting up the revision work. General principles of the audit. Limitations. Audit and similar services.
The Internal Control System
Nature, functions and characteristics of the Internal Control System. The reference models. COSO (Committee of Sponsoring Organizations). Risk assessment models. Enterprise Risk Management: an integrated approach to risk management. Elements of Compliance Management and Risk Management. Elements of Internal Auditing. CoSo Report: ERM and ESG-related risks. Relations between the auditor and the other corporate bodies.
Fundamental elements of the statutory audit
The reference legislation for the statutory audit of accounts. The principles of national and international revision. The legislation on the financial statements and on the group consolidated financial statements. The Consob guidelines. The audit methodology: the operational cycle approach as a reference model in the verification of company information. The internal administrative-accounting control system. The verification of the main business operating cycles.
The concept of significance: measurement; acceptable errors. Quantitative limits of proposed adjustments and reclassifications.
The work documentation.
The responsibility for the statutory audit of accounts. The risks associated with the corporate audit.
Audit evidence of the audit and verification procedures.
The quality of the statutory audit.
The organization of the activity of the auditor. Accounting audit and IT systems. Audit sampling.
Specific details of the statutory audit: business continuity; related parties; accounting estimates and fair value measurements.
Audit procedures
General outline of the audit procedure. An understanding of the company and its operating context. The assessment of the risks of significant errors.
Cash on hand. Financial assets and liabilities. Credits. Inventories left over. Tangible fixed assets. Intangible assets. Investments. Commercial debts. Debts for loans. Accruals and prepayments. Termination indemnity. Derivative financial instruments. Taxes. Provision for risks and charges. Events subsequent to the year end date. Net assets. Income Statement. Financial statement.
The audit report.
Additional duties assigned to the independent auditors.
U. MARINELLI, Audit. Principles and methodological notes, Giappichelli, Turin, last edition.
Additional teaching material
ISA Italy auditing standards: documents no. 200 - 210 - 220 - 240 - 250 - 250B - 260 - 265 - 300 - 315 - 320 - 330 - 402 - 450 - 500 - 501 - 510 - 520 - 530 - 540 - 550 - 560 - 570 - 580 - 600 - 610 - 620 - 700 - 701 - 702 - 705 - 706 - 710 - 720 - 720B - ISQC international quality control principle (Italy) 1
(Https://www.revisionelegale.mef.gov.it/opencms/opencms/Revisione-legale/principiRevisione/elencoPrincipiInternazionali/). Civil Code - Legislative Decree 58/1998 Part IV, Title III and Part V, Title I.
"Rules of conduct of the Board of Statutory Auditors", by C.N.D.C.E.C., 2015, in (www.CNDCEC.it/AreaIstituzionale/Studi).
"Guidelines for the organization of the Board of Statutory Auditors in charge of the corporate audit", by C.N.D.C.E.C., 2012, in (www.CNDCEC.it/AreaIstituzionale/Studi).
Support didactic material distributed by the lecturer.
Programme
Nature, functions and limits of auditingPurpose and subject of the audit. Setting up the revision work. General principles of the audit. Limitations. Audit and similar services.
The Internal Control System
Nature, functions and characteristics of the Internal Control System. The reference models. COSO (Committee of Sponsoring Organizations). Risk assessment models. Enterprise Risk Management: an integrated approach to risk management. Elements of Compliance Management and Risk Management. Elements of Internal Auditing. CoSo Report: ERM and ESG-related risks. Relations between the auditor and the other corporate bodies.
Fundamental elements of the statutory audit
The reference legislation for the statutory audit of accounts. The principles of national and international revision. The legislation on the financial statements and on the group consolidated financial statements. The Consob guidelines. The audit methodology: the operational cycle approach as a reference model in the verification of company information. The internal administrative-accounting control system. The verification of the main business operating cycles.
The concept of significance: measurement; acceptable errors. Quantitative limits of proposed adjustments and reclassifications.
The work documentation.
The responsibility for the statutory audit of accounts. The risks associated with the corporate audit.
Audit evidence of the audit and verification procedures.
The quality of the statutory audit.
The organization of the activity of the auditor. Accounting audit and IT systems. Audit sampling.
Specific details of the statutory audit: business continuity; related parties; accounting estimates and fair value measurements.
Audit procedures
General outline of the audit procedure. An understanding of the company and its operating context. The assessment of the risks of significant errors.
Cash on hand. Financial assets and liabilities. Credits. Inventories left over. Tangible fixed assets. Intangible assets. Investments. Commercial debts. Debts for loans. Accruals and prepayments. Termination indemnity. Derivative financial instruments. Taxes. Provision for risks and charges. Events subsequent to the year end date. Net assets. Income Statement. Financial statement.
The audit report.
Additional duties assigned to the independent auditors.
Core Documentation
Recommended textsU. MARINELLI, Audit. Principles and methodological notes, Giappichelli, Turin, last edition.
Additional teaching material
ISA Italy auditing standards: documents no. 200 - 210 - 220 - 240 - 250 - 250B - 260 - 265 - 300 - 315 - 320 - 330 - 402 - 450 - 500 - 501 - 510 - 520 - 530 - 540 - 550 - 560 - 570 - 580 - 600 - 610 - 620 - 700 - 701 - 702 - 705 - 706 - 710 - 720 - 720B - ISQC international quality control principle (Italy) 1
(Https://www.revisionelegale.mef.gov.it/opencms/opencms/Revisione-legale/principiRevisione/elencoPrincipiInternazionali/). Civil Code - Legislative Decree 58/1998 Part IV, Title III and Part V, Title I.
"Rules of conduct of the Board of Statutory Auditors", by C.N.D.C.E.C., 2015, in (www.CNDCEC.it/AreaIstituzionale/Studi).
"Guidelines for the organization of the Board of Statutory Auditors in charge of the corporate audit", by C.N.D.C.E.C., 2012, in (www.CNDCEC.it/AreaIstituzionale/Studi).
Support didactic material distributed by the lecturer.
Reference Bibliography
It is also useful to consult the ASSIREVI Research Documents (http://www.assirevi.it/index.php?sez=doc_ass&subsez=doc_ric) and the ASSIREVI Research Booklets (http://www.assirevi.it/index.php ? section = notebooks).Type of delivery of the course
The course is divided into ex cathedra lessons and company testimonies (case history).Attendance
Given the complexity of the topics covered, course attendance is strongly recommended.Type of evaluation
The exam consists of an oral test.