The University of Southampton
Courses

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

Module Aims

The module is intended to introduce you to both audit and taxation. You will gain an understanding of the systems approach to auditing and to internal audit. In the area of taxation you will gain an understanding of the principles underlying the design of an effective tax system, an appreciation of the current policy issues in taxation and the principles of personal and business taxation.

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:

  • Learning skills, to include numeracy and problem solving skills
  • Written communication
  • Communicate ideas and arguments orally and through formal presentations

Syllabus

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.

TypeHours
Follow-up work30
Preparation for scheduled sessions20
Revision30
Wider reading or practice36
Lecture24
Seminar6
Tutorial4
Total study time150

Resources & Reading list

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

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

Assessment

Formative

Set exercises - non-exam

Summative

MethodPercentage contribution
Examination  (3 hours) 70%
Group presentation 30%

Repeat

MethodPercentage contribution
Examination  (3 hours) 100%

Referral

MethodPercentage contribution
Examination  (3 hours) 100%

Repeat Information

Repeat type: Internal & External

Linked modules

Prerequisites: MANG1001 Financial Accounting 1, ECON1009

Pre-requisites

To study this module, you will need to have studied the following module(s):

CodeModule
ECON1009Intro to Econ - non-Economists
MANG1001Financial Accounting 1

Costs

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:

Textbooks

Recommended texts for this module may be available in limited supply in the University Library and students may wish to purchase the core/recommended 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 www.calendar.soton.ac.uk.

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