Key Learning Outcomes of the Module - Essay Example

? Write An Account Reflecting On The Key Learning Outcomes Of The Module For You Table of Contents Overview 3 Reflection on Key Outcomes 3 ChallengesFaced In the Study and Ways of Improvements 6 6 References 7 Overview Audit can be identified as a systematic method of impartially collecting and assessing evidence relating to the declarations about the financial condition as well as events where the individuals as well as organisations making the declarations have been involved. There are two types of audit, one which is based upon the audit objective and the other one is based upon the beneficiaries of the audit (Aboriginal Affairs and Northern Development Canada, 2012). The chief objective of the discussion is to reflect upon the learning outcomes of the module. It shall reflect on how the process of working on my assignment in the group improved my understanding of the issues that have been raised. Reflection on Key Outcomes It can be stated that reflection lies around the notion of learning. Reflection is referred as the process of working upon what has been already been known. It is essentially done in order to consider the acquired learning in greater details. It can be considered as a mental processing that can be utilised in order to fulfil the objectives or attain certain probable outcomes (Moon, 2001). The overall study was a learning experience for me. It helped me to identify the ways to work in a group. I recognised the fact that it is quite significant for the senior members of the audit team to review all the pertinent matters taking place from the audit and also to reconsider the financial statements. Furthermore, it came to my understanding that internal control system tends to comprise the control environment as well as control procedures. Moreover, it further comprises all the procedures as well as policies in order to ensure that the business is conducted in an efficient and effective way. However, I also came to the conclusion that internal controls offer reasonable assertion due to the innate limitations such as human error taking place because of the mistakes in judgement and distractions (ICANIG, 2012). It came to my understanding that there are a few steps of the audit that need to be maintained by the auditors. The first step is the pre-engagement phase which is required for serving the client’s best interest with competence as well as professionalism. The auditor is also required to prepare letter of engagement whose chief purpose is to confirm terms of the engagement. The other step in the audit process is the planning phase where the auditor is required to obtain an understanding of the client. While undergoing the course, I was aware of the fact that the auditors undergo both legal as well as professional duties. The auditors are needed to carry out investigations that will permit them to create an opinion. They are further required to audit the accounts with adequate skills and care. I recognised the fact that the auditors are required to minimise the expectation-performance gaps in order to offer the firms with consistent financial statements and to minimise the frauds and errors in such statements (Hayes & Schilder, 2012). I came across the terms such as auditor’s independence and its significance for the auditors. It came to my understanding that the auditor independence is one of the most significant aspects of the auditing profession. It tends to add value to the audited financial statement. However, I was astonished by the fact that there are several threats to the auditor’s independence. One of the threats that I came across in the study was the intimidation threats that tend to take place while the auditor is prevented from acting objectively in relation to actual threats from the customer. The other threat that I learnt from the study was the advocacy threats that are likely to occur when the auditor makes an attempt in order to promote the clients’ opinion. Familiarity threats take place when the auditor is found to become too concerned with the interests of the customers. The other threat that grasped my attention was related to self-interest threats that are likely to take place when the auditor can avail advantages from the financial interests in customers. Self-review threats, on the other hand, is considered to be one of the significant threats to the auditors’ independence that is likely to occur when the auditor offers assurance related to his/her own work. I developed an understanding from the study that once the auditors have recognised the threats that have been stated above, it becomes essential for them to evaluate potential safeguards. These comprises the methods that the firms can take into account in order to shield the auditors’ independence such as review by second partner, discussion with designated professionals in the firms or revelation to the audit committee. I was also made aware of the fact that safeguards also comprise restrictions upon the auditors’ association with the audit customer, such as ban on owning the stock of an audit customer. It is significant for the standard setters to evaluate the importance of the threats along with the efficiency of potential safeguards in order to ensure that their standards are capable of minimising independence risks (Houghton, 2002). I learnt the fact that there are certain ways of safeguarding and strengthening the auditors’ independence. By means of mandatory auditor rotation, the companies are capable of strengthening the auditors’ independence. Furthermore, audit committees and shareholders panel can improve accountability by both directors and auditors to the companies’ shareholders (Breeden, 2003). The study made me aware of the fact that while creating an opinion related to the financial statements, the auditor is generally confronted with two types of risks such as audit risk as well as business risk. I understood the aspect that business risk is recognised as the threat that is posed because of the activities performed in the business in order to attain its goals. Business risk is a kind of risk which a company tends to face, whereas the audit risk can be observed as the risk that the auditors’ confront. It can be stated as the risk that takes place when the auditors’ tend to provide an inappropriate opinion when the financial statements are materially misstated. I came across the understanding that the prime duty of the auditor is to minimise the audit risks to a substantial extent and thus enhance the trustworthiness of the financial statements that he/she is auditing (ACCA Global, 2012). It came to my understanding that the accountants are required to maintain ethics owing to the fact that the pace of social changes has eroded the image of the profession following the scandals, litigations as well as audit failures of most of the businesses that has caused the public to be sceptical of the auditors. Hence, I came to the conclusion that it becomes quite imperative for the auditors to sustain ethics in order to maintain professionalism. Challenges Faced In the Study and Ways of Improvements In order to finish the project, a group was formed so that it could be completed on time. Undergoing such a difficult project requires proper coordination of the group members. Each member of the group was assigned with the task to handle numerous parts of the assignment. One of the challenges that we confronted while working in a group was related to improper coordination and role conflict among the members. The members were not well aware of what they were supposed to do. This generally occurred because of lack of communication among the members. Hence, in the near future, greater attention needs to be paid in the aspects of communication among the members. The significance of coordination also needs to be understood in order to attain the objectives of such project successfully. Proper communication and coordination among the members of the group can help in enhancing the quality of the study to a significant extent (McGraw Hill, 2012). References Aboriginal Affairs and Northern Development Canada, 2012. Internal Audit Manual. Canada. [Online] Available at: http://www.aadnc-aandc.gc.ca/eng/1100100011298 [Accessed August 16, 2012]. ACCA Global, 2012. Risk: Business or Audit. Introduction. [Online] Available at: http://www2.accaglobal.com/pubs/students/publications/student_accountant/archive/richardson_sep06.pdf [Accessed August 16, 2012]. Breeden, R. C., 2003. Restoring Trust. Introduction. [Online] Available at: http://www.sec.gov/spotlight/worldcom/wcomreport0803.pdf [Accessed August 16, 2012]. Hayes, R. S. & Schilder, A., 2012. Principles of Auditing. Ethics of Professional Accountants. [Online] Available at: http://pentagan.nl/downloads/hayes.pdf [Accessed August 16, 2012]. Houghton, K. A., 2002. Auditor Independence: A Market-Based Model Controlling Independence Decisions. Introduction. [Online] Available at: http://archive.treasury.gov.au/documents/297/PDF/houghton.pdf [Accessed August 16, 2012]. ICANIG, 2012. Audit Planning and Control. Introduction. [Online] Available at: http://www.icanig.org/documents/aaa.pdf [Accessed August 16, 2012]. McGraw Hill, 2012. Group and Teamwork. Introduction. [Online] Available at: http://highered.mcgraw-hill.com/sites/dl/free/007091091x/79496/KreitnerSmapleCh.pdf [Accessed August 16, 2012]. Moon, J., 2001. PDP Working Paper 4 Reflection in Higher Education Learning. Introduction. [Online] Available at: https://www.york.ac.uk/admin/hr/researcher-development/students/resources/pgwt/reflectivepractice.pdf [Accessed August 16, 2012]. Read More