{
  "id": "competency:mcom-auditing--assurance",
  "code": "CDU-BUS-AUD-900",
  "level": "MM",
  "name": "MCom Auditing & Assurance",
  "faculty": "Faculty of Commerce, Law and Management",
  "lineage": [
    {
      "institution": "Conquest Designer University",
      "year": 2026,
      "note": "authored from the brief and the IAASB/IFAC standards; no prior institution is claimed"
    }
  ],
  "researchProject": "How much evidence is enough: materiality, sample size and the going-concern signal on one audit file",
  "description": "The calculations an audit file must show: overall and performance materiality and the clearly-trivial threshold (ISA 320, ISA 450), the attribute sample size for a test of controls and the monetary-unit sample for a test of details (ISA 530), and the Altman Z-score as a going-concern indicator (ISA 570).",
  "syllabus": [
    "Materiality: benchmark, percentage, performance materiality, clearly trivial (ISA 320 ¶10–11, ISA 450 ¶A2)",
    "Tests of controls: attribute sampling, tolerable and expected deviations, confidence (ISA 530)",
    "Tests of details: monetary-unit sampling, reliability factor, sampling interval, basic precision (ISA 530)",
    "Going concern: events and conditions, and a quantitative distress indicator (ISA 570 (Revised) ¶A3; Altman 1968)"
  ],
  "reference": {
    "Overall materiality": "benchmark × a percentage set by professional judgement (ISA 320 ¶10, ¶A3–A7)",
    "Performance materiality": "an amount below overall materiality (ISA 320 ¶11)",
    "Attribute sample size": "smallest n with P(deviations ≤ k | n, tolerable rate) ≤ 1 − confidence (binomial)",
    "MUS sample size": "book value × R ÷ tolerable misstatement, R = −ln(1 − confidence) (Poisson, no expected misstatement)",
    "Altman Z": "1.2·WC/TA + 1.4·RE/TA + 3.3·EBIT/TA + 0.6·MVE/TL + 1.0·Sales/TA; < 1.81 distress, > 2.99 safe"
  },
  "role": "You are an audit engagement partner explaining a judgement on the file to the audit committee. Name the standard, show the calculation, and say what the number obliges the team to do next.",
  "feeUsd": 1,
  "version": "1.0.0",
  "qualification": {
    "award": "MCom",
    "nqfLevel": 9,
    "qualificationType": "Master's Degree (HEQSF qualification type 9a)",
    "totalCredits": 180,
    "minCreditsAtExitLevel": 120,
    "iscedFields": [
      "041"
    ],
    "standards": [
      "IAASB Handbook of International Quality Management, Auditing, Review, Other Assurance, and Related Services Pronouncements — ISA 320, ISA 450, ISA 530, ISA 570 (Revised)",
      "IFAC International Education Standard 8 (Revised), Professional Competence for Engagement Partners Responsible for Audits of Financial Statements",
      "AICPA Audit Guide: Audit Sampling (attribute and monetary-unit sampling)"
    ],
    "registration": "not registered"
  },
  "modules": [
    {
      "code": "CDU-BUS-AUD-900-901",
      "title": "Coursework — the executable units",
      "nqfLevel": 9,
      "credits": 60,
      "prerequisites": [],
      "coRequisites": [],
      "outcomes": [
        "answer every unit of the qualification against its published reference, with the working shown"
      ],
      "assessment": {
        "formative": [
          "worked examples re-run against the published reference",
          "seeded practice scenarios, deterministic per (pan, unit, attempt)"
        ],
        "summative": "every unit passed once through the seeded assessment (the seeded assessment room)",
        "passMark": 50,
        "subminimum": 40,
        "moderation": "internally assessed by the unit itself — its reference implementation is the marker; the working is published so anyone can re-run the mark (D-13.1 — no model marks anything)"
      },
      "unitIds": [
        "materiality",
        "attribute_sample_size",
        "mus_planning",
        "going_concern_zscore"
      ],
      "notionalHours": 600
    },
    {
      "code": "CDU-BUS-AUD-900-902",
      "title": "Research report",
      "nqfLevel": 9,
      "credits": 120,
      "prerequisites": [
        "CDU-BUS-AUD-900-901"
      ],
      "coRequisites": [],
      "outcomes": [
        "How much evidence is enough: materiality, sample size and the going-concern signal on one audit file"
      ],
      "assessment": {
        "formative": [
          "worked examples re-run against the published reference",
          "seeded practice scenarios, deterministic per (pan, unit, attempt)"
        ],
        "summative": "the research report, assessed against the qualification’s published reference block",
        "passMark": 50,
        "subminimum": 40,
        "moderation": "internally assessed by the unit itself — its reference implementation is the marker; the working is published so anyone can re-run the mark (D-13.1 — no model marks anything)"
      },
      "unitIds": [],
      "notionalHours": 1200
    }
  ],
  "units": [
    {
      "id": "materiality",
      "name": "Materiality, performance materiality and clearly trivial",
      "answers": "Given the benchmark and the percentages judged appropriate, what are overall materiality, performance materiality and the clearly-trivial threshold?",
      "example": {
        "benchmark": "profitBeforeTax",
        "benchmarkAmount": 2400000,
        "percentage": 0.05,
        "performanceFactor": 0.75,
        "trivialFactor": 0.05
      },
      "reference": "ISA 320 ¶10 (overall materiality), ¶11 (performance materiality), ¶A3–A7 (benchmarks and percentages); ISA 450 ¶A2 (clearly trivial)",
      "signature": {
        "input": {
          "benchmark": {
            "type": "string",
            "describe": "The benchmark chosen",
            "oneOf": [
              "profitBeforeTax",
              "revenue",
              "totalExpenses",
              "totalAssets",
              "equity"
            ]
          },
          "benchmarkAmount": {
            "type": "number",
            "describe": "The benchmark amount",
            "min": 0.01
          },
          "percentage": {
            "type": "number",
            "describe": "Percentage applied to the benchmark, 0–0.1",
            "min": 0.0001,
            "max": 0.1
          },
          "performanceFactor": {
            "type": "number",
            "describe": "Performance materiality as a fraction of overall, 0.5–0.9",
            "min": 0.5,
            "max": 0.9,
            "default": 0.75
          },
          "trivialFactor": {
            "type": "number",
            "describe": "Clearly trivial as a fraction of overall, 0.01–0.1",
            "min": 0.01,
            "max": 0.1,
            "default": 0.05
          }
        },
        "output": {
          "overallMateriality": {
            "type": "number",
            "describe": "Benchmark × percentage"
          },
          "performanceMateriality": {
            "type": "number",
            "describe": "Overall × performance factor"
          },
          "clearlyTrivialThreshold": {
            "type": "number",
            "describe": "Overall × trivial factor"
          }
        }
      }
    },
    {
      "id": "attribute_sample_size",
      "name": "Attribute sample size for a test of controls",
      "answers": "How many items must be tested so that, finding no more than the planned number of deviations, the control can be relied on at this confidence?",
      "example": {
        "confidence": 0.95,
        "tolerableRate": 0.05,
        "plannedDeviations": 1
      },
      "reference": "ISA 530 Audit Sampling ¶7, ¶A10–A13 (tolerable rate, sampling risk); sample size by the binomial distribution as in the AICPA Audit Sampling guide",
      "signature": {
        "input": {
          "confidence": {
            "type": "number",
            "describe": "Confidence level (1 − risk of overreliance), 0.8–0.99",
            "min": 0.8,
            "max": 0.99
          },
          "tolerableRate": {
            "type": "number",
            "describe": "Tolerable deviation rate, 0.01–0.2",
            "min": 0.01,
            "max": 0.2
          },
          "plannedDeviations": {
            "type": "number",
            "describe": "Deviations the plan allows the sample to contain",
            "min": 0,
            "max": 10
          }
        },
        "output": {
          "sampleSize": {
            "type": "number",
            "describe": "Smallest n meeting the risk"
          },
          "riskOfOverreliance": {
            "type": "number",
            "describe": "P(deviations ≤ planned | n, tolerable rate)"
          }
        }
      }
    },
    {
      "id": "mus_planning",
      "name": "Monetary-unit sample: size, interval and basic precision",
      "answers": "For a test of details on this balance, how many monetary units are sampled, at what interval, and what is the basic precision if none is misstated?",
      "example": {
        "bookValue": 5000000,
        "tolerableMisstatement": 150000,
        "confidence": 0.95
      },
      "reference": "ISA 530 Audit Sampling ¶A11 (tolerable misstatement); monetary-unit sampling with the Poisson reliability factor R = −ln(1 − confidence), no expected misstatement",
      "signature": {
        "input": {
          "bookValue": {
            "type": "number",
            "describe": "Recorded amount of the population",
            "min": 0.01
          },
          "tolerableMisstatement": {
            "type": "number",
            "describe": "Tolerable misstatement for the balance",
            "min": 0.01
          },
          "confidence": {
            "type": "number",
            "describe": "Confidence level, 0.8–0.99",
            "min": 0.8,
            "max": 0.99
          }
        },
        "output": {
          "reliabilityFactor": {
            "type": "number",
            "describe": "R = −ln(1 − confidence)"
          },
          "sampleSize": {
            "type": "number",
            "describe": "ceil(book value × R ÷ tolerable)"
          },
          "samplingInterval": {
            "type": "number",
            "describe": "Book value ÷ sample size"
          },
          "basicPrecision": {
            "type": "number",
            "describe": "R × interval: the upper limit when no misstatement is found"
          }
        }
      }
    },
    {
      "id": "going_concern_zscore",
      "name": "Going-concern indicator (Altman Z)",
      "answers": "Does the Altman Z-score put the entity in the distress, grey or safe zone — one quantitative input to the going-concern assessment?",
      "example": {
        "workingCapital": 500000,
        "retainedEarnings": 800000,
        "ebit": 300000,
        "marketValueEquity": 1500000,
        "sales": 4000000,
        "totalAssets": 3000000,
        "totalLiabilities": 1200000
      },
      "reference": "Altman, E. I. (1968), Journal of Finance 23(4) 589–609 — the original five-ratio Z for public manufacturers; ISA 570 (Revised) ¶A3 (events and conditions that may cast doubt)",
      "signature": {
        "input": {
          "workingCapital": {
            "type": "number",
            "describe": "Current assets − current liabilities",
            "min": -1000000000000,
            "max": 1000000000000
          },
          "retainedEarnings": {
            "type": "number",
            "describe": "Retained earnings",
            "min": -1000000000000,
            "max": 1000000000000
          },
          "ebit": {
            "type": "number",
            "describe": "Earnings before interest and tax",
            "min": -1000000000000,
            "max": 1000000000000
          },
          "marketValueEquity": {
            "type": "number",
            "describe": "Market value of equity",
            "min": 0
          },
          "sales": {
            "type": "number",
            "describe": "Sales (revenue)",
            "min": 0
          },
          "totalAssets": {
            "type": "number",
            "describe": "Total assets",
            "min": 0.01
          },
          "totalLiabilities": {
            "type": "number",
            "describe": "Total liabilities",
            "min": 0.01
          }
        },
        "output": {
          "z": {
            "type": "number",
            "describe": "The Z-score"
          },
          "zone": {
            "type": "string",
            "describe": "distress (< 1.81), grey (1.81–2.99) or safe (> 2.99)"
          },
          "goingConcernFlag": {
            "type": "boolean",
            "describe": "True outside the safe zone: the indicator calls for further procedures"
          }
        }
      }
    }
  ]
}