AUDITING, BUSINESS COMBINATIONS AND BUSINESS ETHICS

Alessandro Mechelli

Instructional goals

The course aims to provide students the main operative instruments required to be chartered accountant, developing in particular the issues related to auditing, the consolidated financial statements and the professional deontology.

Prerequisites

General knowledge of business administration and accounting

Intended learning outcomes

At the end of the course, students should know and apply the main operative instruments required to be chartered accountant, in particular the issues related to auditing, the consolidated financial statements and the professional deontology.

Course Contents

PART ONE Consolidated annual report: preparation and presentation Computation of income taxes and the preparation of the fiscal consolidation PART TWO The program of activities of the delegation of DEONTOLOGY CNDCEC. The Code of Conduct of CNDCEC (sections from I to IV) First update of the Code of Conduct of CNDCEC (5th November 2008). The Code of Conduct of CNDCEC: text coordinated and updated at 1st September 2010The Code of Conduct of CNDCEC: text updated at 1st March 2016 THIRD PART Statutory audit: Legislative decree N. 39, of 27 January 2010 after the amendments of D.Lgs 135/2016, that introduced the EU Directive 2014/56/CE on statutory audit of separate and consolidated accounts. Audit procedures and the application of auditing standards: Isa (Italia) 200 (Overall Objectives of the Independent Auditor and the Conduct of an Audit in Accordance with International Standards on Auditing)Isa (Italia) 230 (Audit Documentation)Isa (Italia) 300 (Planning an Audit of Financial Statements)Isa (Italia) 315 (Identifying and Assessing the Risks of Material Misstatement through Understanding the Entity and Its Environment)Isa (Italia) 320 (Materiality in Planning and Performing an Audit)Isa (Italia) 330 (The Auditor's Responses to Assessed Risks)Isa (Italia) 500 (Audit Evidence)Isa (Italia) 505 (External Confirmations)Isa (Italia) 520 (Analytical Procedures)Isa (Italia) 540 (Auditing Accounting Estimates, Including Fair Value Accounting Estimates, and Related Disclosures)Isa (Italia) 700-706 (Forming an Opinion and Reporting on Financial Statements) Isqc (Italia) 1 (Quality Controls)

Reference Books

A. Mechelli, Il bilancio consolidato, Giappichelli Torino, 2022. L. Cadeddu, A. Portalupi. La revisione legale dei conti. I nuovi principi di revisione ISA Italia, pianificazione e gestione del rischio, procedure e prassi operativa, incarichi speciali). Gruppo24Ore (5 edizione 2019). Documenti emanati dal CNDCEC. Other teaching materials (slides and readings) will be shown and distributed by teacher during the course.

Teaching Methods

The lessons will be held alongside the theoretical aspects exercises practical, aimed to apply the concepts operationally exposed.

Assessment Method

The exam consists of an oral test. Those who attend the lessons will have the opportunity to participate to the working groups; these groups will take place in the classroom during the lessons and will have as object the carrying out of cases on the covered topics . For students who will participate to the mentioned work groups, the exam score will be assigned by giving a worth of 30% to the presentation of the practical cases carried out during the working groups and 70% to the oral exam. For students who for any reason do not intend to participate in the mentioned working groups, 100% of the final grade will be assigned based on the oral exam.

Thesis assignment criteria

The teacher will allocate the final mark taking into account: the examination; the students' curriculum.

Week 1

Consolidated financial statement concept2) Definition of the consolidation area according to the national and the international accounting standards Teaching material by the professor

Week 2

1) Elimination of investments in 100% shareholding companies2) computation of differences of consolidation Teaching material by the professor

Week 3

Assignment of positive and negative differences of consolidations Elimination of other investments in shareholding companies (part 1) Teaching material by the professor

Week 4

Elimination of other investments in shareholding companies (part 2) Teaching materials by the professor

Week 5

The ethical principles for the exercise of the profession of chartered accountant Elimination of indirect investments in shareholding companies Teaching material by the professor

Week 6

Elimination of intercompany investments Teaching material by the professor

Week 7

Elimination of intercompany credits and debts Teaching material by the professor

Week 8

Elimination of intercompany profits and losses Teaching material by the professor

Week 9

Fiscal aspects of the consolidated annual report

Week 10

The legislative decree 39 of 2010 after the amendments of D.Lgs 135/2016, that introduced the EU Directive 2014/56/CE on statutory audit of separate and consolidated accounts Introduction to the statutory audit

Week 11

The decree n. 39/2010 on statutory audit and the main statutory audit statutory audit The application of the principles of auditing after the transposition of Directive 2006/43 / EC Teaching material by the professor Teaching material by the professor

Week 12

Exercises on consolidated financial statement