Financial Reporting, Auditing and Control, 30 Credits

Contents

This course covers topics related to financial reporting, how management accounting can be used to create value in companies, financial statement analysis and auditing. The course is given and examined in English.

• Module 1. Financial Reporting and Analysis, 7,5 credits
• Module 2. Advanced Management Accounting, 7,5 credits
• Module 3. Advanced Financial and Sustainability Reporting, 7,5 credits
• Module 4. Advanced Auditing, 7,5 credits

Common expected learning outcome:

• communicate central concepts for the course in English, both orally and in writing.

Module 1.  Financial Reporting and Analysis, 7.5 credits
The aim of the module is to develop the students' abilities to prepare and analyse financial reports. The module has an international perspective and it focuses on accounting based on international accounting standards (IAS/IFRS). These standards are applied by listed companies in most countries around the world. Students taking the module are expected to have good basic knowledge in accounting.

Expected learning outcomes
After completing the module, the student should be able to:

• explain and evaluate the purposes of accounting according to the International Accounting Standard Board's conceptual framework, as well as to understand and be able to apply accounting principles and valuation methods.
• apply the international accounting standards in different situations such as revenue recognition, tangible and intangible assets, leasing transactions, income taxes, provisions and contingent liabilities.
• prepare a cash flow statement and to analyse a company's cash flow.
• prepare consolidated financial statements for a company that has domestic and foreign subsidiaries.
• analyse and evaluate the financial status and performance of a company using ratio analysis. 
• use present value calculations to value the assets and liabilities of companies.
• understand and be able to apply an academic approach to avoid plagiarism in academic work.

Focus of instruction
Learning is supported by lectures, practically oriented exercises, teacher-led case-discussions and tutoring sessions. Students are introduced to academic conduct, for example how cheating and plagiarism can be avoided and referencing techniques.

Examination
The examination is based a written individual hall exam, an individual computer based examination on plagiarism and referencing, and cases. The case-assignments are solved in groups and the assessment is based on the student-groups' written submissions and students' activity in the teacher-led case-discussions. A passing grade is required for each part of the module. Note as well examination modes for the course below.

Module 2. Advanced Management Accounting, 7.5 credits
Management accountants are strategic financial management professionals who integrate accounting expertise with advanced management skills to drive business performance, with the postulate that the sustainability of a firm depends on its ability to recognize and benefit from its value drivers. With a solid theoretical framework, the course addresses modern issues in management control and performance measurement. The focus is on the enhancement of shareholder value through customer-driven value creation from a value-based management perspective. A second purpose of the course is to enhance students' knowledge and analytical skills related to the way managers design, and utilize planning and management control systems to implement strategies. Techniques of the management control process are studied, and behavioural considerations are discussed. The management accounting systems studied should provide information on the value drivers of organizations, to assist in aligning the self-interests of management with long-term shareholder wealth. The students will also become aware of the varied and changing roles of the management accountant. During the module, students will also be introduced to methods of working in international teams. The contents of the course are intended to prepare the students toward the FMAA (Financial and Managerial Accounting Associate) and the CMA certification (Certified Management Accountant), both delivered by the IMA (Institute of Management Accountants). 

Expected learning outcomes:
After completing the module, the student should be able to:

• explain the meaning and significance of management accounting and control and discuss factors that make management accounting and controlling systems differ.
• evaluate how company goals and factors in the environment such as stability, certainty, complexity and national culture influence the management accounting system.
• discuss the relationship between decentralization and management accounting and analyse the challenges of transfer pricing
• apply management accounting processes: strategic planning, costing, budgeting, sustainability reporting, designing performance measurement and incentive systems
• analyse the specific challenges to the design of management accounting systems in not-for-profit organizations, in the provision of services and in temporary project organizations.
• integrate management accounting within sustainability strategy.

Focus of instruction
The developments of the management accounting subject, techniques and concepts are presented during lectures.  Requiring reading for the module includes cases, chapters, and articles contained in the assigned textbooks and supplementary materials. Students are expected to take an active part in discussions on the development of the field, literature and article seminars and reporting about case studies. They will be given a number of assignments, leading to continuous assessment. Course work will be done individually and in small groups. Course work must reach an advanced level of knowledge and understanding of the subject.

Module examination modes
Examination is based upon a written individual hall exam and written group assignments with oral presentation. A passing grade is required for each part of the module. The course is given and examined in English. Note as well examination modes below for the course as a whole.

Module 3. Advanced Financial and Sustainability Reporting, 7.5 credits
The module develops students' abilities to prepare and analyse financial and sustainability reports. It focuses on the reporting in large companies and develops students' abilities to handle also more complicated accounting issues. The module covers financial and sustainability reporting from an international perspective as it focuses on the International Financial Reporting Standards and sustainability standards used in the European Union.

Expected learning outcomes
After completing the module, the student should be able to:

• apply IFRS accounting standards, in both moderately difficult and more advanced situations.
• assess the consequences of different options in relation to accounting-method choices and approaches used for making estimates in accounting.
• apply the European Union's and the International Sustainability Standards Board's regulations when preparing sustainability reports.
• make materiality assessments in the financial reporting and sustainability reporting.

Focus of instruction
Learning is supported by lectures, practically oriented exercises, teacher-led case-discussions and tutoring sessions.

Module examination modes
The examination is based on a written individual hall exam and cases. The case-assignments are solved in groups and the assessment is based the students-group' submissions and the students' activity in the teacher-led case-discussions. Note as well examination modes for the course below.

Module 4. Advanced Auditing, 7.5 credits
This module aims to give students a solid theoretical and practical foundation in auditing. It covers central topics of auditing, such as, risk and materiality assessment, the planning of auditing, the auditing process and auditors' reporting. Professional ethics and independence issues are also discussed during the course module. The course module is principally based on the International Standards of Auditing (ISAs).

Expected learning outcomes
After completing the module, the student should be able to:

• discuss and compare the factors that creates a demand for auditing and affects the value of auditing.
• analyse determinants of audit quality, ethics, and independence from different perspectives.
• identify and analyse the steps in the audit process and evaluate the general types of audit tests and procedures.
• discuss why internal controls are important, how control risks are assessed and ultimately evaluate how the status of internal controls affect the focus of the audit.
• evaluate what mix of audit procedures to be performed and what tests that are suitable for auditing of different financial statement items, such as sales, accounts receivables, inventories, liabilities as well as tangible and intangible assets.
• analyse how audit evidence is evaluated and how findings are reported to outside interested parties.
• assess how the concepts of risk and materiality are interrelated based on the audit risk model.
• discuss the role and value of sustainability assurance from different perspectives.

Focus of instruction
Learning is supported by lectures, workshops and seminars, in which students are expected to take an active part. Cases related to the topics will also be used.

Module examination modes
Examination is based upon a written individual hall exam and group assignments. Note as well examination modes below for the course as a whole.

Expected learning outcomes

See each separate module.

Required Knowledge

A bachelor's degree (equivalent to a Swedish Kandidatexamen, 180 credits) from an internationally recognised university with 75 credits in Business Administration or equivalent with a minimum of 22,5 credits in Accounting/Finance. Proficiency in English equivalent to Swedish upper secondary course English B/6.

Form of instruction

See each separate module.

Examination modes

The course examinations are carried out in English. All examinations must be passed in order to obtain a passing grade on module and course. See also each separate module and below.
 
The following grading system is used:
Pass with distinction (Väl godkänd, VG, 75% or more),
Pass (Godkänd, G, 50% or more)
and Fail (Underkänd U, less than 50%).
 
Grades on the course are awarded when the student has passed all examinations and compulsory course elements.

To receive the grade Pass with distinction (VG) in the 30 credits course consisting of four modules of the same size, the student must have achieved Pass with distinction (VG) in at least three of the four modules. In shorter courses for example 7,5 credit courses, 15 credit courses or 22,5 credits courses Pass with distinction (VG) is given when the student has achieved at least 75% of the total weighted points.

A student who does not pass the first examination will be offered an opportunity for re-examination within 2 months. An additional examination opportunity is normally offered every academic year, one week prior to the start of the autumn term. If required by specific circumstances, another form of examination can be used.

A student that has failed an examination on two occasions has a right to have another examiner or grading teacher appointed, unless there are special reasons against it. A written request addressed to the Director of Studies should be made no later than 14 days before the next examination opportunity.

Adaptations 
Examiners may decide on deviations from the modes of assessment in the course syllabus. Individual adaptation of modes of assessment must give due consideration to the student's needs. The adaptation of modes of assessment must remain within the framework of the intended learning outcomes in the course syllabus. Students who require an adapted examination - and have received a decision on the right to support from the coordinator at the Student Services Office for students with disabilities - must submit a request to the department holding the course no later than 10 days before the examination. The examiner decides on the adaptation of the examination, after which the student will be notified.

Academic integrity and cheating
As a student, you are expected to act with academic integrity. This means writing and presenting within the limits of the academic rules and expectations communicated in the university's regulations and what is otherwise specified by the responsible department. Disciplinary action may be taken against students who use unauthorized help aids or in some other way try to mislead in examination. Rules and regulations concerning the production of academic texts and correct referencing is applicable to written assignments. Submitted material is subject to plagiarism control. In addition, Umeå University rules and regulations for education and research apply.

Transfer of credits
Student who considers themselves to possess knowledge from previous relevant studies or professional or vocational experience that can be comparable to a course or part of a course, can apply for transfer of credits. Approved transfer of credits means that the student does not need to take the or those parts of the course that the decision covers. Information about transfer of credits can be found on Umeå University's web site.

Other regulations

This course can not be included in the degree together with 2BA404, 2BA414, 2BA410, 2BA401, 2FE107, 2FE195, 2FE181.

This document has been translated from Swedish into English. If the English version differs from the original, the Swedish version takes precedence.