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Led by Dorothy Rigour Simulacrum
Eight tutorials on the audit function and corporate governance under UK frameworks, from audit planning and risk assessment through controls and substantive procedures to the auditor's report; then through the UK Corporate Governance Code, the audit committee, the FRC Ethical Standard, and the post-Carillion reform agenda. Rigour Simulacrum leads — fictional UK forensic auditor and former GCHQ analyst whose career spans the FRC, the major firms, and the boardroom. Stage 3 of the Accounting & Finance (UK) programme; Stage 2 financial-accounting-in-context strongly recommended as preparation.
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Led by Dorothy Rigour Simulacrum
The question
An introduction to the audit function in the UK — what auditors actually do, the regulatory architecture (FRC transitioning to ARGA, ICAEW, the FCA), the legal framework (Companies Act 2006), and the international standards regime (ISA UK, transposing IAASB standards). Rigour Simulacrum covers the auditor's overarching duty under the Companies Act, the four cornerstones of audit (independence, scepticism, evidence, judgement), the structural difference between audit firms and other professional-services businesses, and how the audit relationship works between the audit committee, the auditor, and management.
Outcome
The student can articulate the purpose of audit, identify the regulatory framework and the relevant standards, distinguish reasonable assurance from absolute assurance, and outline the structure of the audit lifecycle. (Audit foundations)
Practice scenarios
You meet for the first time, as engagement partner on the 2024 Halberd plc audit, with the audit committee chair — a former CFO new to the chair role. The work tests whether you can explain the auditor's role, the audit committee chair's responsibilities, and the working relationship clearly, in plain English, without retreating to jargon under pressure from a busy senior counterpart.
Your goals
Led by Dorothy Rigour Simulacrum
The question
Audit planning and risk assessment — the upfront work that drives the entire audit. The module covers the audit risk model (audit risk = inherent × control × detection), the calculation of materiality and performance materiality using UK plc benchmarks, the identification of significant risks under ISA UK 315, the engagement-team brainstorming required by ISA UK 240 for fraud risk, and the construction of the audit strategy memo. The worked scenario plans the 2025 audit of Halberd plc with a mid-year ERP migration and an announced impairment review.
Outcome
The student can prepare an audit strategy memo for a hypothetical UK-listed company including identification of significant risks, calculation of materiality, and a high-level audit approach; can apply the audit risk model to a specific financial-statement assertion; and can articulate the engagement-team brainstorming required for fraud risk. (Audit planning and risk assessment)
Practice scenarios
You plan the 2025 Halberd plc audit with the company facing a mid-year ERP migration, two new acquisitions, and an announced impairment review. The work tests whether you can calculate materiality from defensible UK plc benchmarks, identify the significant risks for the year, and frame an audit strategy memo defensible to the engagement quality control reviewer.
Your goals
Led by Dorothy Rigour Simulacrum
The question
Internal controls — what they are, how the auditor evaluates them, and how the operating-effectiveness test actually works in practice. The module covers the COSO framework, the difference between entity-level and process-level controls, the design and operation of the typical revenue-cycle controls, IT general controls and application controls, the audit's choice between a controls-reliant and substantive approach, and the test-of-controls procedures with appropriate sample sizes. The classification of deficiencies as control deficiency, significant deficiency, or material weakness closes the module.
Outcome
The student can identify key controls in a typical revenue process; design tests of operating effectiveness with appropriate sample sizes; classify a control deficiency as deficiency, significant deficiency, or material weakness; and articulate the implications of an ineffective ITGC environment for the audit approach. (Internal controls and testing)
Practice scenarios
You evaluate the controls in Halberd plc's revenue process and design the test-of-controls audit programme to support a controls-reliant approach. The work tests whether you can map controls to assertions, design appropriate sample sizes, identify the IT general control dependency, and resolve the question of how far to rely on internal audit's parallel work.
Your goals
Led by Dorothy Rigour Simulacrum
The question
Substantive procedures — the audit's last line of defence, directly testing account balances and transactions. The module covers the assertions framework (existence, rights and obligations, completeness, accuracy/valuation, cut-off, classification), tests of details (vouching, tracing, confirmation, recalculation, inspection), substantive analytical procedures with explicit expectations, the journal-entry testing required for fraud risk under ISA UK 240, and the management-estimates testing under ISA UK 540 (revised). The worked scenario designs the substantive procedures on Halberd plc's revenue with the channel-stuffing fraud risk.
Outcome
The student can map substantive procedures to assertions for the key financial-statement areas (revenue, receivables, payables, inventory, PPE, intangibles, provisions, equity); can design a substantive analytical procedure with explicit expectation and threshold; and can articulate the discipline of journal-entry testing for fraud risk. (Substantive procedures)
Practice scenarios
You design the substantive procedures on Halberd plc's £375m revenue with the channel-stuffing fraud risk requiring journal-entry testing and rigorous cut-off work. The work tests whether you can map procedures to assertions, design a defensible substantive analytical procedure, and conduct ISA UK 240 journal-entry testing on senior finance management without losing professional courtesy.
Your goals
Led by Dorothy Rigour Simulacrum
The question
The auditor's report — the visible output of the audit, substantially revised since 2016 to be more informative. The module covers the modern report structure (opinion, basis for opinion, key audit matters, going concern, other information, responsibilities), the difference between unmodified and modified opinions (qualified, adverse, disclaimer), the going-concern conclusion under ISA UK 570, the KAM disclosures under ISA UK 701, and the FRC-required additions for UK PIE audits. The worked scenario drafts the Halberd plc 2024 report including three KAMs (goodwill impairment, revenue recognition, pension assumptions).
Outcome
The student can draft an unmodified UK auditor's report including KAMs and going-concern conclusion; can articulate when a qualified, adverse, or disclaimer opinion is required; and can explain the difference between modification and emphasis-of-matter. (Auditor's report)
Practice scenarios
You draft Halberd plc's 2024 auditor's report including the unmodified opinion, the going-concern conclusion, and three key audit matters (goodwill impairment, revenue recognition, pension assumptions). The work tests whether you can produce a CPR-Part-35-style document that satisfies the modern auditor's report requirements and survives review by both the EQR and the audit committee chair.
Your goals
Led by Dorothy Rigour Simulacrum
The question
The UK Corporate Governance Code 2024 — the most influential governance document in UK markets and the framework within which the auditor operates. The module covers the five sections of the 2024 Code (Board Leadership and Company Purpose; Division of Responsibilities; Composition, Succession and Evaluation; Audit, Risk and Internal Control; Remuneration), the comply-or-explain mechanism, the new internal-controls declaration required from 2026, and the audit committee's responsibilities under the Code. The worked scenario evaluates Halberd plc's 2024 corporate-governance statement against the 2024 Code.
Outcome
The student can identify the five sections of the 2024 Code and the key provisions of each; can evaluate a company's corporate-governance statement for the quality of compliance and the cogency of any explanations; and can articulate the audit committee's responsibilities and the auditor's interaction with the committee under the Code. (UK Corporate Governance Code)
Practice scenarios
You evaluate Halberd plc's draft 2024 corporate-governance statement against the 2024 UK Corporate Governance Code, with one declared departure (a 10-year-tenure SID) and an in-progress 2026 internal-controls readiness programme. The work tests whether you can judge the cogency of the comply-or-explain disclosure and frame practical recommendations to the audit committee.
Your goals
Led by Dorothy Rigour Simulacrum
The question
The audit committee as a working body, and auditor independence under the FRC Ethical Standard 2024. The module covers the audit committee's meeting cadence and agenda, the executive session (no management present), the audit committee chair role, the threats-and-safeguards independence framework (self-interest, self-review, advocacy, familiarity, intimidation), the prohibited non-audit services for PIEs, the 70% fee cap, partner rotation, and the cooling-off period for former audit partners taking client roles. The closing scenario works three live independence questions arriving on Halberd's audit committee agenda.
Outcome
The student can describe an effective audit committee's working pattern; can apply the FRC Ethical Standard threats-and-safeguards framework to a specific independence question; and can identify the key independence risks in a real audit relationship. (Audit committee and FRC Ethical Standard)
Practice scenarios
You handle three live independence questions arriving on Halberd's audit committee agenda — a tax-structuring engagement, an extension of engagement-partner tenure, and a former audit partner appointed as Halberd's new CFO. The work tests whether you can apply the FRC Ethical Standard threats-and-safeguards framework rigorously and resist the audit committee chair's pragmatic pressure to find workarounds.
Your goals
Led by Dorothy Rigour Simulacrum
The question
The post-Carillion reform agenda — the most significant programme of audit-and-governance reform in a generation, sparked by Carillion plc's January 2018 collapse months after a clean audit opinion. The module covers the four landmark reviews (Sharman 2012 on going concern, Kingman 2018 on the FRC, CMA 2019 on the audit market, Brydon 2019 on audit purpose), what has been implemented (enhanced going concern, KAM disclosures, operational separation), what is in progress (ARGA, the 2026 internal-controls declaration), and what remains pending (Brydon's structural reforms, redefined audit). The closing scenario briefs an audit committee on reform readiness.
Outcome
The student can articulate the four reviews and their key recommendations; can identify which recommendations have been implemented and which remain pending; and can articulate the post-Carillion direction of travel for UK audit and corporate governance. (Post-Carillion reform)
Practice scenarios
You brief Halberd plc's audit committee on the firm's readiness for the post-Carillion reform programme, covering what is implemented, the 2026 internal-controls declaration, and the longer-term Brydon-direction agenda. The work tests whether you can structure a sceptical audit committee chair through three years of reform and recommend a credible readiness programme.
Your goals