Financial Audit I

Company Law

As a theoretically-weighted course unit with significant practical application, the teaching method combines several practices, such as:

– Guided Theoretical Exposition: Lectures supported by presentations and regulatory manuals (ISA, Codes of Ethics, OROC Statutes).

– Active Learning: Discussion of real-life case studies (independence situations, ethical dilemmas, cliente acceptance, EIP audits); and group resolution of practical problems applying the standards.

– Simulations and Role-Play: Role-playing situations: client contact, communication with governance officials, managing threats to independence; ethical debate in professional dilemmas.

– Continuous Formative Assessment: Practical questionnaires, case analysis grids, and immediate feedback.

– Integration with Professional Practice: Seminars with invited ROCs; analysis of published reports and opinions.

This course has the following objectives:

 O1: Understand the role and responsibilities of the Statutory Auditor (SA), familiarizing yourself with the applicable professional standards, the Statutes of the SAO, the codes of ethics of the SAO and the IESBA, as well as the legal and regulatory frameworks of the profession.

 O2: Provide an integrated overview of the different types of work of a SAO, including the requirements and standards applicable to each type.

 O3: Develop skills related to audit client acceptance.

 O4: Understand international quality management standards and other international standards.

The main skills to be acquired by completing this course are:

 C1: Identify and apply legal and ethical requirements regarding independence, recognizing threats and implementing appropriate safeguards.

 C2: Be able to apply knowledge of institutional cooperation duties, professional secrecy, liability insurance, and fee criteria.

 C3: Distinguish between auditing and other reliability engagements, and know which international standards (ISAs) to apply.

 C4: Respond to the specific demands of audits of Public Interest Entities, ensuring quality, rigorous documentation, effective communication, and compliance with ethical and legal obligations.

 C5: Understand the client and contract acceptance process, assessing risks and independence requirements.

 C6: Be able to apply international quality management standards to audit engagements.

Part I – Professional Ethics and Independence

1 – The Role of the Statutory Auditor (SAO)

2 – Professional Regulations

2.1 – SAO Bylaws

2.2 – SAO and IESBA Codes of Ethics

2.3 – The SAO in the CSC and Other Legal or Regulatory Frameworks

2.4 – Audit Supervision and Reliability Assurance Work

3 – Statutory Auditor Independence

3.1 – Legal and Regulatory Requirements

3.2 – Ethical Requirements

3.3 – Threats to Independence and Safeguards

4 – Other Statutory Auditor Responsibilities

4.1 – Duties of Cooperation with the Association

4.2 – Duties of Cooperation with Other Entities

4.3 – Professional Secrecy

4.4 – Professional Liability Insurance

4.5 – Fees

4.6 – Other Duties

Part II – Financial Auditing

1 – Auditing – Introduction and General Aspects

1.1 – Auditing, Other Work Reliability Assurance and Related Services

1.2 – General Aspects of an Audit (ISA 200-220)

1.3 – ISA LCE Specifics

2 – Client Acceptance Process

2.1 – Independence Assessment

2.2 – Assessment of Other Conditions or Impediments

2.3 – Contact with the Predecessor

2.4 – Other Requirements for Agreeing on the Terms of Engagement

2.5 – Other Requirements for Acceptance or Continuation of Audit Work

2.6 – Communication with Those Charged with Governance

2.7 – Declaration of Acceptance

2.8 – Contract Conclusion

2.9 – Communication to the Bar Association

2.10 – Documentation

3 – Specific Requirements for Audits of Public Interest Entities

3.1 – Pre-Audit Checks for IPEs

3.2 – Threats to Independence in IPEs

3.3 – Third-Party Communication Obligations

3.4 – Other Aspects

3.5 – Documentation

4 – International Quality Management Standards and Other International Standards

4.1 – Quality Management in Audit Firm (ISQM 1 and 2)

4.2 – Other International Standards

4.2.1 – International Standards for Review Engagements (ISRE)

4.2.2 – International Standards for Reliability Assurance Engagements (ISAE)

4.2.3 – International Standards for Related Services (ISRS)

NAO