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The University of Southampton

MANG2066 Principles of Audit and Taxation

Module Overview

Auditing and taxation are both essential elements of accounting. An appreciation of the two subjects is important not only for accountants but also for management. Auditing is a crucial element of financial reporting and corporate governance. Taxation implications must be considered during decision making processes.

Aims and Objectives

Learning Outcomes

Knowledge and Understanding

Having successfully completed this module, you will be able to demonstrate knowledge and understanding of:

  • the systems approach to auditing;
  • the role of internal audit;
  • the principles of personal and business taxation;
  • the main features of the operation of selected UK taxes.
Subject Specific Intellectual and Research Skills

Having successfully completed this module you will be able to:

  • apply different audit procedures to a variety of scenarios;
  • prepare simple computations for major UK taxes (e.g. income tax, corporation tax, national insurance and capital gains tax);
  • compare aspects of the UK tax system with possible alternative systems;
  • demonstrate what you have learned both by application to numerical data and in written form.
Transferable and Generic Skills

Having successfully completed this module you will be able to:

  • demonstrate numeracy and problem solving skills;
  • communicate ideas in a written format;
  • communicate ideas and arguments orally and through formal presentations.


Audit • Nature of audit • Appointment • Planning, risk and materiality • Systems approach • Internal audit Taxation • Principles of tax system design: desirable characteristics; tax bases, unit and rates. Direct and indirect taxes. • Personal taxation: taxation as it effects individuals. The main features of the UK personal taxation system. • Taxation of business profits and companies: the problems of taxing business and corporate profits; the main features of the taxation of business profits in the UK; the main features of the UK system or corporation tax; issues in taxation of small businesses.

Learning and Teaching

Teaching and learning methods

The module will commence with the study of audit. The first six weeks will include a mix of lectures, classes and practical sessions using audit simulation software. The second part of the module will cover taxation. There will be one lecture and one class per week. Selected exercises will be used to provide formative feedback to students. Additional exercises and reading will be set for private study.

Preparation for scheduled sessions20
Follow-up work30
Wider reading or practice34
Total study time150

Resources & Reading list

Millichamp, A. & Taylor, J. (2012). Auditing. 

Lymer, A. & Oats, L. (2015). Taxation: Policy & Practice 2015/2016. 



In-class activities


MethodPercentage contribution
Group presentation 30%
Written assessment 70%


MethodPercentage contribution
Written assessment 100%


MethodPercentage contribution
Written assessment 100%

Repeat Information

Repeat type: Internal & External

Linked modules

Prerequisite: MANG1001 or MANG1025


Costs associated with this module

Students are responsible for meeting the cost of essential textbooks, and of producing such essays, assignments, laboratory reports and dissertations as are required to fulfil the academic requirements for each programme of study.

In addition to this, students registered for this module typically also have to pay for:


Recommended texts for this module may be available in limited supply in the University Library and students may wish to purchase the mandatory/additional reading text as appropriate.

Please also ensure you read the section on additional costs in the University’s Fees, Charges and Expenses Regulations in the University Calendar available at

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