Study-Unit Description

Study-Unit Description


TITLE Managerial Auditing

LEVEL 05 - Postgraduate Modular Diploma or Degree Course


DEPARTMENT Accountancy

DESCRIPTION This study unit will be divided into two parts.

Part I will overview the foundations of modern internal auditing ,including its role in assessing the effectiveness of internal controls, risk management and corporate governance. It will examine internal auditing as a discipline and its relevance to management success as well as the management significance of the discipline's professionalism, including adherence to internationally accepted standards and also its approach, including dealing with fraud investigations. This will be followed by how an audit strategy is set and the audit planning process.

The audit fieldwork including planning, evaluation, testing strategies, reporting and follow-up will also be explained, as well as how one is to meet modern challenges of benchmarking, ethical conflicts and own performance measurement and effectiveness. The internal audit communication with the various related parties, including user departments, management, Audit Committee, Board, external auditors and the effectiveness of such links will also be included.

Part II will then treat with the management or value-for-money audit, involving an assessment of methods and policies of an organization's management in the administration and the use of resources, tactical and strategic planning, and employee and organizational improvement. This will include how a management auditor will deal with the review of managerial aspects like corporate objectives, policies, procedures, structures, controls and systems for such auditor to assess the economy, efficiency and effectiveness of management. The focus will be on how to ascertain whether results have been achieved, how well the management has been operating the business of the company, whether the managerial style is well suited for business operation and the challenges posed by underlying rules, procedures and methods.

Study-unit Aims:

The aims of this study-unit are twofold, introducing students to:

- the management relevance of the fast-emerging discipline of internal auditing, which applies auditing concepts and techniques in the context of corporate governance, control and risk management;
- the concept and relevance of the management audit in modern corporate governance and its significance for management success.

Learning Outcomes:

1. Knowledge & Understanding:
By the end of the study-unit the student will be able to:

- Explain the foundations of internal auditing and the role it plays as a tool for top management and the significance to internal auditors of standards and their application;
- Distinguish clearly among the different roles of internal auditing in control, corporate governance and risk management;
- Describe how a management audit is carried out;
- Recognize how such management audit can help managers improve their performance.

2. Skills:
By the end of the study-unit the student will be able to:

- Identify manner of performing internal audits including planning, reporting and follow-up;
- Build up ways of improving audit committee communication, fraud detection and prevention;
- Utilize the results of the both internal and management audits to the benefit of their organization.

Main Text/s and any supplementary readings:

Latest editions of the following suggested texts, include:

- Sawyer L. Sawyer's Internal Auditing: The Practice of Modern Internal Auditing (Institute of Internal Auditors);
- Spencer Pickett KH, The Essential Handbook of Internal Auditing (Wiley) Wiley;
- Articles and publications set by Lecturer such as those Arter D.R Management Auditing, Quality Digest 4/1/2000.

ADDITIONAL NOTES Pre-Requisite Study-unit: ACC5297


Assessment Component/s Assessment Due Resit Availability Weighting
Presentation (30 Minutes) SEM2 No 30%
Assignment SEM2 Yes 70%


The University makes every effort to ensure that the published Courses Plans, Programmes of Study and Study-Unit information are complete and up-to-date at the time of publication. The University reserves the right to make changes in case errors are detected after publication.
The availability of optional units may be subject to timetabling constraints.
Units not attracting a sufficient number of registrations may be withdrawn without notice.
It should be noted that all the information in the description above applies to study-units available during the academic year 2020/1. It may be subject to change in subsequent years.