Technologies Applied to Auditing

There are no prerequisites to attend this Course.

In this module, active student-centred teaching methodologies are favoured, aiming to promote problem-solving maturity and critical thinking in this area. Thus, the following teaching and learning methodologies are utilised:
– Expository, in terms of concepts, definitions, and work tools;
– Active and participatory, associated with the study and resolution of practical cases for the detection of anomalies and fraud, as well as in group work and in reaching consensus on the best practices to employ in solving various practical cases;
– Experimental, as the use of tools and technology in the classroom is emphasised for solving practical exercises and for completing assignments;

– Self-study, related to the autonomous work component, very prevalent in second-cycle studies, which should be encouraged so that students are adequately prepared for the second year of the master’s programme.
The content associated with emerging technologies will be taught through application cases and research in the area, with guest speakers explaining the application of these technologies in their businesses.

A. Objectives
– Acquisition of knowledge of CAATTs, Computer-Assisted Audit Tools and Techniques and fundamental practical skills concerning the role the auditor plays, particularly in detecting anomalies using data analysis and extraction tools for conducting substantive tests;
– Expand the range of knowledge of Computer Tools Supporting Auditing by promoting the organisation of Seminars with companies providing specific Software for Auditing;
– Understand the new trends in Technologies and Tools for auditing, particularly regarding the use of emerging technologies for auditing: Artificial Intelligence, Internet of Things, Cloud and Blockchain, practical use cases and research in the field.
B. Competencies:
– Students should become capable of using tools and technologies for auditing, allowing for greater efficiency and effectiveness in the auditor’s work.

1. Information Systems (IS) in Auditing (Isabel Pedrosa)
1.1. Notion of IS: generic aspects of an Information system (definition, basic elements)
1.2. Evolution of IS
1.3. Applicability of IS in Organizations
1.4. The importance of Information in Auditing: information versus knowledge.
1.5. New challenges for the auditor
2. Computer Tools for Audit Support (Isabel Pedrosa)
2.1 Definition and applicability of Computer-Assisted Audit Tools and Techniques, CAATTs
2.2 Type of CAATTs
2.3 Tools for the Management of Audit Work Papers
2.4 Tools for data analysis and extraction
2.5 IDEA: contextualization of the application
2.6 Case Studies using IDEA:
3. Emerging Technologies for Auditing
3.1 Concepts
3.2 Robotic Process Automation
3.3 Artificial Intelligence and Genative Artificial Intelligence for auditing
3.4 Cloud Auditing
3.5 Big Data and Data Mining
3.6 Blockchain

The proposed assessment methodologies are:

• Option A. Continuous assessment (regular and normal period)
• Option B. Assessment in Normal, Appeal, or Special Period

Option A - Continuous Assessment

i. Classes are theoretical-practical in a computer lab with Caseware IDEA.

ii. Assessment will be carried out through:

2 tasks using the “1,2,4, all” methodology (Task 1 + Task 2)
2 individual computer tests (Test1 + Test2)
1 practical assignment (group or individual) of data analysis with IDEA (P)

Tasks in IDEA - 1,2,4,all method:

- Each task focuses on one of the practical cases:

1) Students define - individually and outside of class as preparation for class - questions that can be asked of the data for each of the practical cases and, in class, they form a group with another classmate and discuss these questions.

2) Subsequently, they join another group and the final result will be produced by this group of 4, with the individual grade.

Task Grading: 2 tasks, each weighing 10% of the final grade

Tests:
- IDEA tests will be taken on the computer in the last part of the 5th or 6th class (1st test) and in the last class (2nd test). The exact schedule will be decided in the 1st class of the Course Unit.

Test grading: 2 tests, each weighing 15% of the final grade

IDEA practical work:

The IDEA work will be presented on the date specified in the regular exam schedule.

IDEA practical work grading: 50% of the final grade, distributed as follows: Report*25%+ Presentation*12.5% + Individual Discussion*12.5%

final_grade_TIA=10%*task1+10%*task2+15%test1+15%*test2+ 50%*IDEA_work)

Compulsory attendance: students will be required to attend a minimum of 75% of classes in order to be assessed in Continuous Assessment. (Exception to the Working Students)

Students will pass with a grade of 9.5 or higher out of 20. There are no plans to hold oral exams.

Option B. Assessment during the Normal, Resit, or Special Exam Periods

During the Exam Periods, students may be assessed as follows:

- a test that includes the practical component of Caseware IDEA (90 minutes long) with a theoretical and practical component

- an individual project with a report, presentation, and discussion with data provided in each of the assessment periods.

final_grade_TIA=50%*test +50%*Project

Project grade: 50% of the final grade, distributed as follows: Report*25%+ Presentation*12.5% + Individual Discussion*12.5%

Students who have completed only one of the assessment components during the semester may retain that grade for the normal, appeal, and special periods.
No oral exams are scheduled for these periods.

NAO