RLS 3161

Studieguide

Komplett gjennomgang av pensum med forklaringer, formler, vanlige feil og eksamenstips.

Introduksjon

RLS 3161 Auditing is a core course in the Bachelor of Accounting and Auditing (BRR) program at BI. The course provides a comprehensive understanding of the statutory audit process, from planning through reporting, with emphasis on International Standards on Auditing (ISAs) and the ethical framework governing the profession.

This study guide covers all key topics and gives you a compact review of the most important concepts. Use it as a supplement to lectures and the textbook — it is designed to help you understand the connections between topics and prepare effectively for the exam.

Key Abbreviations

Standards and Frameworks:

ISA = International Standards on Auditing | ISQM = International Standard on Quality Management

IESBA = International Ethics Standards Board for Accountants | COSO = Committee of Sponsoring Organizations

IFRS = International Financial Reporting Standards | IAS = International Accounting Standards

Audit Concepts:

ROMM = Risk of Material Misstatement | IR = Inherent Risk | CR = Control Risk | DR = Detection Risk

AR = Audit Risk | KAM = Key Audit Matter | PIE = Public Interest Entity

ITGC = IT General Control | NRV = Net Realizable Value

Norwegian Terms:

Revisorloven = the Norwegian Auditing Act | Finanstilsynet = Financial Supervisory Authority

Hvitvaskingsloven = Anti-Money Laundering Act | EFE = Enheten for finansiell etterretning (Financial Intelligence Unit)

Økokrim = National Authority for Investigation and Prosecution of Economic and Environmental Crime

The audit process and planning

The overall framework for conducting a financial statement audit, including engagement acceptance, planning, and the audit risk model.

Why This Topic Matters

Understanding the audit process is the foundation for everything else in this course. The way an audit is planned directly determines its effectiveness and efficiency. This topic connects to every other topic — risk assessment, evidence gathering, and reporting all flow from how well the audit is planned.

The Objective of an Audit (ISA 200)

The objective is to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error. Reasonable assurance is a high, but not absolute, level of assurance.

Key Principle: The audit is designed to provide reasonable assurance — not absolute assurance. Inherent limitations (sampling, judgment, nature of evidence) mean the auditor cannot guarantee that all misstatements are detected.

Phases of an Audit Engagement

Client acceptance/continuance: Evaluate risk, independence, and engagement terms (ISA 210)
Planning: Develop overall audit strategy and detailed audit plan (ISA 300)
Risk assessment: Understand the entity, assess risks of material misstatement (ISA 315)
Responding to risks: Design and perform further audit procedures (ISA 330)
Completion: Evaluate evidence, form conclusion
Reporting: Issue the audit report (ISA 700/705/706)

The Engagement Letter (ISA 210)

Before starting the audit, the auditor must establish the terms of the engagement in writing. The engagement letter documents:

The objective and scope of the audit
The responsibilities of the auditor
The responsibilities of management
The applicable financial reporting framework
The expected form and content of the audit report

Planning (ISA 300)

The auditor develops:

Overall audit strategy: Sets the scope, timing, and direction at a high level
Detailed audit plan: Describes the nature, timing, and extent of specific audit procedures

Example: The overall strategy might state that inventory is a high-risk area requiring year-end physical count attendance. The detailed plan would specify which locations to visit, sample sizes, and the specific counting procedures to observe.

Professional Skepticism and Judgment

Professional skepticism is a questioning mind, alertness to conditions indicating misstatement, and critical assessment of evidence. It is required throughout the entire audit.

Professional judgment is the application of training, knowledge, and experience in making informed decisions. Both are essential and interact — judgment without skepticism leads to over-reliance on management, while skepticism without judgment leads to inefficiency.

Audit Documentation (ISA 230)

The audit file must be documented so that an experienced auditor with no previous connection to the engagement could understand: (1) the nature, timing, and extent of procedures performed, (2) the results of the procedures, and (3) the audit evidence obtained and conclusions reached.

Vanlige feil

⚠️Confusing reasonable assurance with absolute assurance
⚠️Failing to distinguish between the overall audit strategy (high-level direction) and the detailed audit plan (specific procedures)
⚠️Forgetting that professional skepticism must be maintained throughout the entire audit, not just during risk assessment
⚠️Not recognizing that the engagement letter must be agreed upon before the audit begins
⚠️Confusing the auditor's responsibilities with management's responsibilities (management is responsible for the financial statements and internal control)

Eksamenstips

💡Always reference specific ISA numbers when discussing audit requirements (e.g., ISA 200, ISA 210, ISA 300)
💡When discussing audit planning, explain both the strategy and the plan — they are different documents with different levels of detail
💡If asked about audit objectives, always mention "reasonable assurance" and explain what it means
💡Questions about the engagement letter often test whether you know management's vs. the auditor's responsibilities
💡Link planning decisions to risk — higher risk areas require more extensive planning and procedures

Laster...