International Master in Auditing and Business Management

1^st PART: BUSINESS MANAGEMENT

1. STRATEGIC MANAGEMENT OF HUMAN RESOURCES

   This subject will enable students to establish a conceptual and methodological framework from which they will be able to identify the systemic and strategic approach employed by present-day Human Resource Management (HRM).

   Aspects which are addressed within this subject include:

   STRATEGY AND MANAGEMENT OF HUMAN RESOURCES

   Description of the current approach to strategic management of human resources. Identification of models of human resource management that favour a systemic and strategic approach.

   HRM

   Technology for diagnosis, prediction and monitoring. Design of technology for the diagnosis, prediction and monitoring of human resource management. Application of tools and techniques in the creation of HRM technology.

   STRATEGIC PLANNING IN HR AND STAFF OPTIMISATION

   Interpretation of the integrated and systemic approach on which strategic planning of human resources is based. Workforce optimisation and determination of staffing requirements in the light of key tangible and intangible performance indicators.

2. BUSINESS ETHICS AND CORPORATE SOCIAL RESPONSIBILITY

   Students will become acquainted with the fundamental principles of the subject matter, thus enabling them to appreciate the importance and relevance of Business Ethics and Corporate Social Responsibility, while being encouraged to consider them an efficient tool in the attainment of competitiveness. On completion of this subject, students will have gained a sound understanding of the concept and intrinsic value of ethics and social responsibility, in addition to becoming familiar with ethical standards and the role they play in corporate efficiency. The relationship between business ethics, values, competitiveness, efficiency and effectiveness will be studied so as to enable the student to be capable of determining lines of corporate action that favour an ethical and responsible approach.

   Aspects which are addressed within this subject include:

   FUNDAMENTAL PRINCIPLES OF BUSINESS ETHICS AND SOCIAL RESPONSIBILITY

   Historical evolution of ethics. Universal nature of ethics. Influential thinkers in the field of ethics. Definition of ethics. Methods of study. Reasons for acting intelligently. Need to take into account the interests of others. Ethical performance, a corporate perspective. Ethical standards and business efficiency. Fundamental principles of business ethics. Life plan requirements. Ethics, legality and values. Shared values. Reasons for the growing interest in business ethics.

   THE NEED FOR BUSINESS ETHICS AND SOCIAL RESPONSIBILITY

   The concept of business and society. Predicament of Small and Medium-Sized Enterprises (SMEs). The company as a system and integrated part of society. Business Ethics. Ethics and competitiveness. Corporate Social Responsibility, company priorities and mission. Sustainable company management. Responsibilities towards clients, employees and other stakeholders. Ethics training as a prerequisite for establishing a more secure business climate. Benefits derived from adherence to a firmly established code of ethics. Consequences of an inadequate use of ethics within organisations.

   THE PIVOTAL ROLE OF THE HUMAN FACTOR IN BUSINESS ETHICS AND SOCIAL RESPONSIBILITY

   People as a source of income rather than expenditure. Evolution of human capital and intellectual capital. Business culture, motivation, sense of belonging, and leadership. Ethical variables in the performance of a business community. Synthesis of organisational climate, communication and authority systems in the determining of ethical values. Business Ethics and current trends in management. Innovation, science and technology. Ethics and ecommerce.

3. OPERATIONS MANAGEMENT AND DIRECTION

   This subject familiarises the student with practices involved in the management of operations and logistics, including strategic aspects related to long-term decision-making, like product design and definition (What can we offer?) and process design and analysis (How can we achieve this?), as well as short- and mid-term tactical and operational planning decisions (How many? How? Where should we offer the product?). Emphasis is laid on the importance played by logistics support in the execution of a viable plan. In this sense, logistics is approached as the most efficient means of meeting requirements at the lowest feasible cost.

   Aspects which are addressed within this subject include:

   PRODUCTION SYSTEM DESIGN

   Forecasts. Production Planning and Control. Synchronised Production Systems.

   SUPPLY CHAIN MANAGEMENT

   Logistics system management. The supply chain. Importance of logistics and the supply chain. Logistics costs. Logistics as a service. Global supply and distribution chains. Strategic role of logistics and the supply chain. Logistics and the supply chain in the generation of value. Strategies in logistics and supply chain management. Logistics and supply chain planning. Areas of logistics planning.

   PURCHASING AND SUPPLY MANAGEMENT FUNCTION

   Objectives and relevance of the purchasing function and its interaction with the rest of the company. Strategic Planning in the purchasing function. Analytical model of purchasing processes.

4. LOGISTICS

   This subject will enable the student to understand and contextualise logistics within the area of operational organisations and thus successfully manage product acquisition, movement and storage, in addition to mastering inventory control.

   Aspects which are addressed within this subject include:

   CONCEPTUAL FRAMEWORK OF LOGISTICS

   Logistics systems management. The supply chain. Planning.

   INVENTORY MANAGEMENT

   Definition and types of inventory. Performance measurement of inventory systems. Inventory costs. Inventory distribution by value. Inventory Systems.

   WAREHOUSE MANAGEMENT

   Overview of warehouse management. Criteria. Packaging.

   PROCUREMENT

   Objectives of the purchasing function. Procurement strategic planning. Analytical models.

5. E-BUSINESS AND ITS INTEGRATION IN CORPORATE MANAGEMENT SYSTEMS

   This subject provides a comprehensive overview of the concept of business integration via information systems. It approaches integration from an organisational and technological perspective and reviews the key concepts of integration based on ICTs such as ERP, SCM and CRM.

   Aspects which are addressed within this subject include:

   ORGANIZATIONAL APPROACH TO INTEGRATION: SUPPLIES, CLIENTS AND SYSTEMS

   Fundamental principles. Value chain. Case study of Supply Chain Integration.

   TECHNOLOGICAL APPROACH TO INTEGRATION: CONCEPTUAL ASPECTS OF E-BUSINESS INTEGRATION

   Importance of e-business. Organisational change. Company strategy. e-Business implementation.

   ENTERPRISE RESOURCE PLANNING (ERP)

   Conceptual aspects. Integration in information management. Integration of ERP systems. Supplier selection. Strategic impact on investment return.

   HUMAN RESOURCE MANAGEMENT IN THE DIGITAL ERA

   Change within a corporate environment. Human resource management. Technology in human resource management.

   SUPPLY CHAIN MANAGEMENT (SCM)

   The supply chain. Definition. Supply Chain Management. Implementation of SCM in e-business.

   CUSTOMER RELATIONSHIP MANAGEMENT (CRM)

   Conceptual aspects. Strategy. Implementation. Supplier selection. Integration.

2^nd PART: AUDITING: QUALITY, ENVIRONMENT AND PREVENTION

1. QUALITY MANAGEMENT SYSTEMS: ISO 9001 AND AUDITING

   Employing an eminently practical approach, this subject is of particular relevance to those suppliers who need to implement a quality management system, whether in response to client request or as a result of the need to comply with the legal requirements existing in the sector.

   Aspects which are addressed within this subject include:

   QUALITY MANAGEMENT SYSTEMS

   Presentation of the Quality Management Systems. The ISO 9000 series of standards. The eight quality management principles. Process management and control. Differences between product standards and management systems. Implementation plan for a quality system. Sector-specific management systems. Global review of the implementation of the ISO 9001 standard.

   WORKING WITH THE ISO 9001 STANDARD

   Good documentation practices. Documentation requirements of the ISO 9001:2008 standard. Computerised documentation management. Certification process. Scenario post ISO 9001.

   QUALITY AUDITING

   Objectives of quality auditing. ISO 19011:2002 standard. Fundamentals of auditing. Management of an audit programme. Audit activities. Auditor competence and evaluation. Audit questionnaire.

   APPENDICES

   Correspondence between ISO 14001:2004 and ISO 9001:2008. Guidelines as to documentation requirements. List of national accreditation bodies (IAF members). Rules for the use of the certification marks QMS and EMS. List of IQNET partners.

2. ISO 45001

   This subject presents the active model and the planning of the preventive activity as a basic and critical element of any management model for the prevention of occupational risks, instrumented in the ISO 45001:2018 standard, as well as the necessary documented information and audit requirements.

   Some of the topics addressed in the subject are the following:

   THE ROLE OF PREVENTION IN THE GLOBAL MANAGEMENT OF THE COMPANY

   Background. The reactive system of action. Elements of success of the active system of action. Integration of preventive activity. How is the integration of occupational risk prevention achieved? What is a management system for occupational risk prevention? Types of management models. Management responsibilities.

   PLANNING OF PREVENTIVE ACTIVITY IN THE COMPANY

   Introduction. Definition of preventive planning. Planning by objectives and rules of procedure. Aspects of the planning of preventive activities. General planning procedure.

   ISO 45001:2018 STANDARD

   Introduction. Background of the ISO 45001:2018 standard. High-level structure: Annex SL. Main changes of ISO 45001:2018 with respect to OHSAS 18001:2007. Priorities in the implementation. Certification of the OSH management system according to the ISO 45001:2018 standard. Transition of the specification to the ISO 45001:2018 standard.

   IMPLEMENTATION OF ISO 45001:2018 STANDARD

   Introduction. Object and field of application. Normative references. Terms and definitions. Context of the organization. Leadership and participation of workers. Planning. Support. Operation. Performance evaluation.

   DOCUMENTED INFORMATION OF THE OSH MANAGEMENT SYSTEM ACCORDING TO ISO 45001:20188

   Introduction. Level I: Occupational safety and health management manual. Level II: procedures. Level III: instructions. Level IV: records. Control of documentation.

   LABOR RISK PREVENTION AUDIT

   General concepts about prevention audits. Principles of audit. Objectives of prevention audits. Types of audits in prevention of occupational risks. The audit process. Evaluation of the occupational risk prevention audit. Necessary requirements to carry out an audit of occupational risk prevention.

3. ENVIRONMENTAL MANAGEMENT SYSTEMS: ISO 14001

   This subject presents Environmental Management Systems (EMS) as tools that organise and regularise corporate procedures related to environmental issues associated with company activity. Furthermore, the student will receive a clear and illustrative explanation as to the steps necessary for successful implementation of this environmental management instrument, which favours the protection of the environment and reduces the barriers involved in international trade.

   Aspects which are addressed within this subject include:

   BUSINESS AND THE ENVIRONMENT

   Environmental protection measures: reduction in the consumption of energy, water and raw materials, adequate waste management, sewage treatment, smoke and noise, Life Cycle Assessment (LCA), compliance with the legal obligations implicit in practices affecting the environment, implementation of an EMS in the company. Normalising environmental practices.

   CORPORATE ENVIRONMENTAL MANAGEMENT SYSTEMS

   Definition of an EMS. Function of EMS and reason for implementation. Who can implement an ESM? Interested parties in an EMS. Approach to EMS implementation. Choice of EMS. Global review of the implementation of the ISO 14001 standard.

   STANDARD ISO 14001

   The ISO 14000 series of standards. Structure of the ISO 14001 standard. Definitions. Objectives and scope of ISO 14001: requirements, decision and initial commitment, initial environmental review, environmental policy, planning, implementation and operation, verification. Review by Management. Certification of EMS in accordance with ISO 14001. Total quality and environmental management.

   CASE STUDY: A DIDACTIC STUDY OF IMPLEMENTATION

   Precedents: case of RICOTE, S.A. Problem statement. Stage 1: environmental commitment. Stage 2: initial review. Stage 3: RICOTE, S.A. draws up its environmental policy. Planning of Environmental Management System. Drafting of manual: procedures. Checking and corrective action. Auditing.

3^rd PART: STATISTICS AND FINANCES

1. BASIC STATISTICS

   This subject provides the student with practical knowledge of the basic concepts of descriptive statistics, probability and inferential statistics.

   Aspects which are addressed within this subject include:

   DESCRIPTIVE STATISTICS

   Univariate statistics. Mean, mode and median. Variance, standard deviation and other measures of dispersion and location. Multivariate statistics. Correlation between variables. Covariance.

   GRAPHICAL REPRESENTATIONS

   Bar and pie charts. Box-plots. Histograms.

   PROBABILITY AND INFERENTIAL STATISTICS

   Probability calculation. Bayes' theorem and the law of total probability. Statistical distributions. Inference. Point estimate.

   CONFIDENCE INTERVALS

   Construction and interpretation.

2. STATISTICAL SAMPLING

   This subject provides the student with practical knowledge of the sampling methods currently available to auditing professionals. It also presents the procedures for the selection and determination of sample sizes.

   Aspects which are addressed within this subject include:

   SIMPLE RANDOM SAMPLING (SRS)

   LINEAR SYSTEMATIC SAMPLING (LSS)

   PROBABILITY PROPORTIONAL TO SIZE (PPS) SAMPLING

   MULTI-STAGE SAMPLING

   TWO-PHASE SAMPLING

   OBTAINING A SAMPLE

3. FINANCIAL MATHEMATICS

   This subject introduces the student to the area of financial valuation, laying special emphasis on the corresponding valuation laws.

   Aspects which are addressed within this subject include:

   FINANCE LAWS

   Introduction to the world of finance. Capital comparison. Finance laws: compliance requirements.

   FINANCE LAWS IN USE

   Simple capitalisation. Compound capitalisation. Comparison of capitalisation laws. Commercial discount. Rational discount. Compound discount. Comparison of discount laws.

   INTEREST RATES

   Annual interest rate. Nominal interest rate. Fractional annual interest rate.

   VALUATION OF BASIC FINANCIAL INCOME

   Types of fixed income (annuities): lifetime, temporary, immediate, deferred, in advance, in arrears. Arithmetic growth annuity. Geometric growth annuity.

   TREASURY BILLS, BONDS AND OBLIGATIONS

   Issue. Redemption. Payment of interest or arrears.

   LOANS

   Annuity, depreciated capital, interest and outstanding debt. French loan. Constant payment loan. American loan.

   INTEREST RATES

   Implicit and forward interest rates

4. FINANCIAL MANAGEMENT

   This subject highlights the main aspects that constitute the financial management area of any business entity.

   Aspects which are addressed within this subject include:

   THE COMPANY AND CORPORATE FINANCE

   The financial function of a company. The financial objective of a company. Corporate financial structure. Finance and economic health of the company. Corporate finances and financial strength. Economic and financial trajectories. Financial management and financial statements. Financial management and normalisation of financial and accounting conditions.

   FINANCIAL STATEMENTS AS ANALYSIS SUPPORT

   Management relevance of economic and financial statements. Basic balance equation. Profit and loss account.

   ANALYSIS PERFORMANCE MANAGEMENT

   Analysis of operating profit (EBIT). Benefits After Tax (BAT) accounting. Net profit (NP). Integrated CPG analysis. Analysis of analytical CPG.

   ANALYSIS OF CORPORATE OPERATIONAL PROFITABILITY

   Operational profitability. Economic profit (EP). Policies derived from EP. Financial profit (FP). Policies derived from FP. Financial leverage factor.

   ANALYSIS OF THE MANAGEMENT OF WORKING CAPITAL

   The business operating cycle. Analysis of working capital turnover. Stock inventories. Minimum investment in working capital. Imbalances in stock management. Stock control systems.

   ANALYSIS OF OPERATIONAL LIQUIDITY

   Liquidity and financial strength. Analysis of corporate liquidity. Calculation of working capital requirements. Management of commercial credit provision to clients. Impact of commercial risk. Credit management of suppliers. Stock valuation.

   ANALYSIS OF THE COST-EFFECTIVENESS OF THE FINANCIAL STRUCTURE

   Cost of capital structure. Methods for calculating the cost of equity. Weighted average cost of capital (WACC). Shareholder value creation.

   ANALYSIS OF INVESTMENT DECISIONS

   The decision to invest. Profile of an investment plan. Calculation of absorbed cash flow. Calculation of generated cash flow. Economic and financial attributes of an investment plan. Methods of economic assessment of an investment plan.

   ANALYSIS OF THE COST-EFFECTIVENESS OF INVESTMENT PLANS

   Net asset value (NAV) method. Internal rate of return (IRR) method. Comparative analysis of NAV and IRR. Pay-back period method. Calculation of financial cash flow. Economic risk factors in investments.

4^th PART: ACCOUNTING, FINANCING AND INTERNATIONAL TAXATION

1. FINANCIAL VALUATION UNDER IAS

   The International Accounting Standards (IAS) require the compulsory application of certain standards of financial valuation with a view to maintaining adequate accounting records. Students will receive practical tuition to enable them to apply these valuation standards correctly, employing Excel as an accounting tool.

   Aspects which are addressed within this subject include:

   INTRODUCTION TO FINANCIAL VALUATION

   VALUATION OF CAPITAL CASH FLOWS

   VALUATION OF INVESTMENT PROJECTS

   VALUATION OF LOANS

   FINANCIAL VALUATION IN THE NATIONAL CHART OF ACCOUNTS

2. INTERNATIONAL ACCOUNTING STANDARDS

   In this subject the student will become familiar with the International Standards of the International Accounting Standards Board (IASB), their philosophy and main applications.

   Aspects which are addressed within this subject include:

   DIVERSITY OF ACCOUNTING APPROACHES WORLDWIDE

   ACCOUNTING HARMONISATION

   THE IASB AND INTERNATIONAL ACCOUNTING STANDARDS

   FIRST IMPLEMENTATION

   FINANCIAL STATEMENTS

   INTANGIBLE ASSETS

   REAL ESTATE INVESTMENTS

   TANGIBLE FIXED ASSETS

   CURRENT ASSETS

   FINANCIAL INSTRUMENTS

   PROVISIONS AND CONTINGENCIES

   NET WORTH

   INCOME AND DETERMINATION OF FINANCIAL RESULT

   PROFIT TAX

3. FINANCING AND INTERNATIONAL TAXATION

   Globalisation presents business entities with investment and financing opportunities on an international scale. In order to carry out successful investments, it is essential to be familiar with the different financial instruments with which the investment may be achieved (or through which financing may be obtained), as well as the way in which these transactions will be taxed.

   Aspects which are addressed within this subject include:

   THE INTERNATIONAL FINANCIAL SYSTEM AND THE EUROMARKETS

   The World Bank and the International Monetary Fund. The International Financial Markets. The Euromarkets. Other forms of international financing.

   CURRENCIES, EXCHANGE RATES AND FOREIGN EXCHANGE

   Importance of exchange rates. Long-term exchange rates. Short-term exchange rates. Expected return. Exchange rate hedging: currency futures and options.

   INTERNATIONAL TAXATION

   Importance of taxation in decision-making within Multinationals. Taxation types and rates. Tax jurisdiction. Tax treaties and tax credit.

   TRANSFER PRICING

   Multinationals and transfer pricing. Reasonable transfer pricing. Fiscal monitoring and control of transfer pricing.

5^th PART: ADVANCED ACCOUNTING

1. ANALYSIS OF FINANCIAL STATEMENTS

   The main aim of this subject is to acquaint the student with the concepts of analysis and diagnosis of financial statements. It will present the relevant analytical techniques and procedures so as to enable the student to make an informed opinion about the patrimonial, financial and economic state of the entity under analysis. This approach seeks to provide students with sufficient expertise so that, through analysis of the accounting data and application of the corresponding methodology, they may be capable of making an accurate diagnosis of the current economic and financial state of the business entity and its future prospects.

   Aspects which are addressed within this subject include:

   BASIC FINANCIAL STATEMENTS

   SUPPLEMENTARY FINANCIAL STATEMENTS

   INTRODUCTION TO THE ANALYSIS OF FINANCIAL

   STATEMENTS

   STRUCTURAL ANALYSIS

   LIQUIDITY ANALYSIS

   SOLVENCY ANALYSIS

   ECONOMIC ANALYSIS

   PROFITABILITY ANALYSIS

   SECTORAL ANALYSIS OF THE COMPANY

   DIAGNOSTIC OVERVIEW OF THE COMPANY

2. MANAGEMENT ACCOUNTING

   This subject seeks to provide the student with sound, practical knowledge of corporate internal accounting. It commences by defining the scope of Management Accounting and explaining its interface with Financial Accounting. Issues related to the classification, location and assignment of cost for the determination of manufacturing costs will also be studied. Taking the costs calculated as a reference point, they will be used to guide the taking of informed corporate decisions that will contribute to the efficient use of productive resources.

   Aspects which are addressed within this subject include:

   BASIC CONCEPTS OF COST ACCOUNTING

   RESOURCE COSTS

   INTERNAL ACCOUNTING CYCLE

   PROCESS OR DEPARTMENT COST ACCOUNTING

   PRODUCTION ORDER OR JOB ORDER COST ACCOUNTING

   ACTIVITY-BASED COST (ABC) ACCOUNTING

   FULL AND PARTIAL COST ACCOUNTING

3. TOTAL QUALITY COSTS

   This subject will comprehensively review the existing extensive bibliography related to the area of Total Quality Costs. The most significant conceptual aspects will be broached so as to provide the student with the necessary expertise to be able to quantify the Total Quality Cost.

   Aspects which are addressed within this subject include:

   THE IMPORTANCE OF QUALITY COST AS A MANAGEMENT INSTRUMENT

   Justification of quality cost. Historical relevance of total quality cost.

   CONCEPTUAL ANALYSIS OF QUALITY COST

   Terminological conflicts. Definition of total quality cost. Composition of total quality cost: classifications.

   INTEGRATION OF TOTAL QUALITY COST INTO MANAGEMENT ACCOUNTING PROCEDURES THROUGH ACTIVITY-BASED COST SYSTEMS.

   Introduction to activity-based cost systems. Relationship between activity and added value. Symbiotic relationship between ABC systems and total quality cost.

   QUANTIFICATION OF TOTAL QUALITY COST THROUGH CUSTOMER COMPLAINTS

   Introduction to the advocated approach. Complaint valuation as an approach to total quality cost.

   ANALYSIS AND COMMUNICATION OF TOTAL QUALITY COST

   Importance of adequate data analysis. Recommended comparative bases. Analysis of total quality costs.

4. BUDGETARY AND PUBLIC ACCOUNTING

   This subject will enable the student to interpret public accounting statements, especially the budget.

   Aspects which are addressed within this subject include:

   PUBLIC ECONOMICS AND MANAGEMENT

   Public economics and public sector. Public choice theory. The welfare state. International public economics. Fundamentals of public management. Political economy of public sector governance. Budget processes and fiscal discipline. The budget as a tool of economic policy. Budgeting, accounting and control of public management.

   BUDGETING

   Budget concept and history. Budget concepts.

   BUDGETING TECHNIQUES

   Practical application of budgeting. Budget benchmarking techniques. Multi-annual budgeting. Budgeting: specific case analysis.

   COMPARATIVE ANALYSIS OF INTERNATIONAL BUDGET COMPOSITION

   Trends in expenditure composition in Europe. Evolution of public expenditure. Trends in expenditure composition in Latin America. Evolution of public expenditure. Trends in expenditure composition in the United States. Evolution of public expenditure.

   PUBLIC ACCOUNTING

   Concepts of public accounting. Accounting data systems for public bodies.

   IMPLICATIONS OF THE INTERNATIONAL STANDARDS GOVERNING PUBLIC ACCOUNTING AND BUDGETING

   IAS, IFRS and ISA: International Accounting Standards (IAS); International Financial Reporting Standards (IFRS); International Standards on Auditing (ISA).

6^th PART: AUDITING

1. AUDIT PLANNING AND PERFORMANCE

   This subject will initially familiarise students with the standard principles of auditing by presenting the most widely accepted auditing standards together with a basic outline of the phases inherent to audit procedure. Subsequently, the basic methods of audit planning and administration will be studied, from the moment the client requests the service to the drawing up of the auditing program.

   Aspects which are addressed within this subject include:

   CONCEPT OF AUDITING. TYPES OF AUDIT. SCOPE OF AUDITING.

   REQUIREMENTS TO BECOME AN AUDITOR. RESPONSIBILITIES OF THE AUDITOR.

   ANNUAL ACCOUNTS AUDITING. MANDATORY AUDITS.

   STANDARDS ISSUING BODIES. AUDITING STANDARDS. CONCEPTS AND TYPES.

   AUDITING PHASES. BASIC, PRACTICAL CONCEPTS.

   AUDIT WORK PHASES. BASIC OUTLINE OF AUDIT WORK. DEVELOPMENT OF WORK PHASES.

   AUDIT PLANNING. CONCEPT. OBJECTIVES. FACTORS IN PLANNING AUDITS.

   THE AUDIT PROGRAM. CONTENT. PREPARATION. TYPES.

2. INTERNAL CONTROL

   This subject will enable students to evaluate the internal control system of a business entity and reflect their findings in an internal control memorandum.

   Aspects which are addressed within this subject include:

   CONCEPT AND OBJECTIVES OF INTERNAL CONTROL. TYPES OF INTERNAL CONTROL. KEY ELEMENTS.

   PHASES OF INTERNAL CONTROL. EVALUATION OF INTERNAL CONTROL SYSTEMS. ANALYTICAL TECHNIQUES.

   PREPARATION OF THE CONCLUSION MEMORANDUM OF INTERNAL CONTROL. INTERNAL CONTROL WEAKNESSES.

   LIMITATIONS. LIMITATIONS INHERENT TO INTERNAL CONTROL.

3. AUDITING DOCUMENTATION, EVIDENCE AND RISKS

   All auditing activities must be thoroughly documented. "Working papers" is the widely used term given to the set of records generated by an audit and on which auditors base their reports. Students will learn how every auditing action should be duly documented at the relevant stage of each audit.

   Aspects which are addressed within this subject include:

   DEFINITION AND PURPOSE OF WORKING PAPERS

   TYPES OF WORKING PAPERS. PERMANENT AND TEMPORARY PRESERVATION OF ARCHIVAL MATERIAL.

   GENERAL AUDIT PROGRAM. ORGANISATION AND DOCUMENTATION OF PROGRAMS AND WORKING PAPERS.

   CONTENT OF WORK CELLS

   GUIDELINES FOR THE USE OF WORKING PAPERS

   AUDIT EXECUTION. PRE-AUDIT STUDY, CUSTOMER ANALYSIS. PRELIMINARY PHASE. CLOSING PHASE. EVENTS SUBSEQUENT TO CLOSING.

   AUDIT REVIEW

4. AUDIT PROCEDURES BY AREAS I

   Once the auditing process has been plotted, the auditor divides the work involved in the review of the annual accounts into different areas. This is done to assure a clear understanding and recording of all the actions taken. For each area the auditor should be familiar with the corresponding accounting standards, and should set the targeted objectives. In addition, the main aspects of internal control to be reviewed should be decided upon so as to implement the appropriate auditing procedures. The study of these areas is shared between two subjects, the first of which will concentrate on non-current assets, stock inventories, trade debtors and creditors.

   Aspects which are addressed within this subject include:

   AUDITING OF NON-CURRENT ASSETS: INTRODUCTION

   Tangible fixed assets: accounting valuation, recording and information; auditing objectives; internal control; auditing procedures. Intangible assets: valuation, recording and accounting data; auditing objectives; internal control; auditing procedures.

   STOCK INVENTORIES: INTRODUCTION

   Valuation, recording and accounting data. Initial valuation. Methods of stock valuation. Subsequent valuation. Information subject to disclosure in financial data. Auditing objectives. Internal control. Auditing procedures.

   TRADE DEBTORS AND OTHER ACCOUNTS RECEIVABLE: AUDITING OBJECTIVES

   Internal control. Auditing procedures.

   TRADE CREDITORS AND OTHER ACCOUNTS PAYABLE: AUDITING OBJECTIVES

   Internal control. Auditing procedures.

5. AUDIT PROCEDURES BY AREAS II

   In the second part of the subject, the student will become familiar with financial instruments, whether assets or liabilities, as well as with the profit and loss account of the business entity.

   Aspects which are addressed within this subject include:

   FINANCIAL INSTRUMENTS (ASSETS)

   Recognition, recording and appraisal of financial investment. Loans and accounts receivable. Held-to-maturity investments. Financial assets at fair value. Available-for-sale financial assets. Reclassification of financial assets. Derecognition of financial assets. Specific cases of financial assets. Auditing of short- and long-term financial investments. Auditing objectives. Internal control. Auditing procedures.

   AUDITING CASH AND OTHER LIQUID ASSETS

   Auditing objectives. Internal control. Auditing procedures.

   FINANCIAL INSTRUMENTS (LIABILITIES)

   Debt rating. Debts and payables. Trading portfolio. Liabilities at fair value. Accounting valuation, recording and information. Auditing objectives. Internal control. Auditing procedures.

   AUDITING OF PROFIT AND LOSS ACCOUNTS

   Accounting valuation, recording and information. Auditing objectives. Internal control. Auditing procedures.

6. AUDIT REPORTS

   This topic starts with the auditing of the area of previous assets, which constitutes the last step prior to issuing the audit report. Subsequently, students receive a concise presentation of other auditing areas of lesser importance. Finally, information is provided as to the conclusions drawn from the fieldwork and the considerations that should be taken into account for future audits in the business entity. In addition, the student will become acquainted with other key aspects, such as the need to discuss adjustments and reclassifications with the entity's management, and familiarity with audit report templates (in compliance with prevailing auditing standards and internal control report templates), which present the audit findings together with recommendations for improving internal corporate procedures.

   Aspects which are addressed within this subject include:

   NET WORTH (EQUITY) AUDITING: EQUITY CAPITAL

   Accounting valuation, recording and information. Auditing objectives. Internal control. Auditing procedures.

   OTHER AUDITING AREAS: PROVISIONS AND CONTINGENCIES

   Auditing of related parties. Subsequent events and continuous auditing.

   AUDIT REPORT: ELEMENTS OF THE AUDIT REPORT

   Types of auditor's opinion.

   AUDIT REPORT TEMPLATES

7^th PART: FINAL PROJECT

1. RESEARCH METHODS

   This subject seeks to familiarise students with the scientific context of research, and the field's conceptual considerations and methodological requirements. The different stages intrinsic to a process of research will be examined, thereby favouring the development of the skills and abilities involved in the methodological design of the Master's Degree Final Project and in the writing of the research report.

   Aspects which are addressed within this subject include:

   EPISTEMOLOGICAL ASPECTS OF SCIENTIFIC RESEARCH.

   What is epistemology? What is a paradigm? Knowledge and science. Positive-empirical approach. Hermeneutic or interpretive approach. Poiesis and praxis: key elements to the understanding of paradigms.

   SCIENTIFIC RESEARCH PROCESS.

   Steps in scientific research. Initiating a research project. Project starting point. Choice of research topic. Problem formulation. Formulating research questions. Hypothesis formation. Research justification. Titling of research.

   CONSTRUCTION OF THE THEORETICAL RESEARCH FRAMEWORK.

   Definition of theoretical framework. Review of related literature: documentation and information gathering. Search sources: primary, secondary and tertiary. Search location: virtual and/or physical. In-depth literature consultation: selection criteria. Reading of academic texts: strategies for reading and understanding written texts. Reproducing/understanding a text in the right measure. Practical advice for the reading of academic texts. Research data recording procedures. Writing of research framework: guidelines.

   DESIGN OF RESEARCH STRATEGY.

   Determination of type of research design. Classification variables. Operational definition of variable. Sampling methods. Tools and techniques for gathering data. Participant observation. Nominal group. DELPHI technique. In-depth interview. Group discussion. Life history. Data analysis procedures. Qualitative data analysis. Content analysis. Discourse analysis.

   THE RESEARCH REPORT.

   Parts of a written research report. Presentational aspects in scientific research studies. Composition of written texts: the writing process. Textual issues. Basic text properties. International styles of bibliographical referencing. General rules for in-text citation. Bibliographical referencing at the end of the research study. Criteria for self- assessment of a research report.

2. FINAL PROJECT

   Although this module occupies the last place in the Programme Overview, work on the Master's Degree Final Project will commence on completion and favourable assessment of the subjects that precede it on the learning schedule (after completion of approximately 66%), as detailed in the Programme's Virtual Campus. These subjects include Research Methods, which will prove essential for the successful writing of the Final Project.

   The procedural information for the Final Project is contained in the Final Project Guidelines, available from the Virtual Campus. The guidelines are divided into three parts, with their corresponding phases, and constitute the guide the student should follow to achieve satisfactory completion of the Final Project.

   During this whole process, the student will receive support from academic staff and will be assigned a Final Project Supervisor who is an expert in the field of study.

Note: The content of the learning programme may undergo minor modifications to account for ongoing curricular updating.