Financial Auditing Practices

Accounting, Auditing and Comercial Law

The development of contents will be carried out based on a theoretical and practical approach, building a basic frame of reference, either through exposure, or through research work and practical cases.

These approaches will be complemented, from an application perspective, with case analysis and problem solving.

Deepen the theoretical foundation of auditing in the context of assessing the compliance of the financial information produced by the company with the Accounting Standardization System;

Know the auditor’s role, the indispensability of evidence and the methodology to be followed to plan the financial audit work and apply the auditing procedures and standards that will lead to obtaining the evidence;

Identification of basic auditing principles and concepts;

Application of the concepts of materiality, tolerable distortion, proof, inherent risk, control risk and detection risk to the different audit areas.

1) Basic concept of auditing and financial auditing:

The audit: importance and necessity
Distinction between object and objective of financial audit
The evolution of the objective of the financial audit

2) Important milestones in audit regulation:

Sarbanes-Oxley
The audit after Sarbanes-Oxley
EU Green Paper

3) Development of the financial audit work:

Audit planning, understanding the client, assesing risk and responding
Audit evidence and documentation
Audit sampling

4) Audit of cycles

Cash and Banks
Accounts payable and other liabilities

Inventories and cost of goods sold

Accounts receivable, notes receivable and revenue
Property, plant and equipement: depreciation and depletion

Practical cases

5) Completion of the audit work

6) Audit report

NAO

Almeida, B. (2022). Manual de Auditoria Financeira – Uma análise integrada baseada no risco. 4ª ed. Escolar Editora.

Arens, A., Loebbecke, J., 2019, Audiitng and assurance services: an integrated approach, 17th, Prentice Hall.

Whittington, O., Pany, K., 2016, Principles of Auditing & Other Assurance Services, 20th, McGrawHill.

Rittenberg, L., Johnstone, K. Gramling, A., 2016, Auditing: a Business Risk Approach 10th ed.    South-Western.

Valderrama, J., 2008, Teoria e prática de la auditoria II, Ediciones Pirâmide.

Valderrama, J., 2008, Teoria e prática de la auditoria I, Ediciones Pirâmide.

Machado de Almeida, B., 2005, Auditoria e sociedade – Diferenças de expectativas, Publisher Team.