ACG 4651: Auditing and Assurance Services Spring 2009

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1 ACG 4651: Auditing and Assurance Services Spring 2009 Professor: Dr. Julia L. Higgs, Ph.D., CPA Office: Barry Kaye Hall, Room (Include the course number in the subject line of all communication. Please use this method of communication first. Include your phone number if you want me to call you. Note that some legitimate goes into my junk mail folder because of the filter FAU uses. If I do not respond to you within 2-3 business days, assume that I have not received the and try to send it again.). You must indicate the class name in the subject line. I am teaching many courses and do not have the time to search class rosters. I generally do not check on weekends or during the evening hours. Office Hours: 1-1:50 Tuesday and Thursday (by appointment) 9-9:50 Wednesday (by appointment) Phone: If you leave a message, slowly articulate your phone number and name two times (office) Required Text: Auditing and Assurance Services by William Messier, Steven Glover, and Douglas F. Prawitt 6 th Edition, McGraw Hill Irwin (ISBN ) 6 th Edition Recommended Text: Any current CPA review manual in both the auditing and regulation areas. Supplemental Material: AICPA web page (Statements of Audit Standards, Quality Control Standards, Code of Professional Conduct) PCAOB web Page (Auditing Standards, inspection reports) Securities and Exchange Commission EDGAR database found at Accounting and Auditing Enforcement Releases Statement about the Course and Objectives: Some students have difficulty in an auditing class because the nature of the course is different from most other accounting courses. In this class, the material is qualitative rather than quantitative. Further, it is not possible in a classroom setting to teach one to be an auditor, just as it would be impossible to teach surgery in a classroom. The following list contains the objectives of the course. At the end of the course the student should: 1. Understand the role of the audit in society 2. Understand the nature of the accounting profession (auditors) and the firms 3. Understand the regulatory environment of auditing 4. Understand the reporting responsibilities of auditors

2 5. Understand the issues related to auditor independence 6. Understand the legal issues in auditing 7. Understand the basic audit process 8. Understand the concept of risk as it relates to the auditing process 9. Understand the role of internal controls in auditing 10. Have an exposure to transaction cycles Class policies: Prerequisites: The prerequisites for the course are ACG 3141 and ACG If you do not have these courses, you may be administratively dropped at any time during the semester. If you are administratively dropped, you will be fee liable. It is the student s responsibility to ensure that he/she has the prerequisite. Use of Blackboard: Students are responsible for ensuring that their blackboard account is current. The professor will not resend s because your blackboard account was not up to date. I recommend that you find a buddy in the class who you can contact about announcements or notes. s and announcements may be sent through blackboard. Per the university policies, grades cannot be discussed via because faculty is subject to the Freedom of Information Act. Thus, it is impossible to guarantee student privacy. As such, grades will be posted to Blackboard. Final grades are posted to the University system, not necessarily to blackboard. Projects and Homework: Any graded projects must be submitted to the digital dropbox in Blackboard. DO NOT anything to the instructor as these will be considered not submitted. With close to 100 students, it is impossible for the instructor to manage the hundreds of assignments and students in . Homework is not collected. I recommend that you do the exercises and check your work against the solutions provided. Other Class Policies: 1. Students are expected to come to class having (a) READ the text material assigned for that day and (b) ATTEMPTED ALL assignments. 2. Unless instructed otherwise, ALL work to be submitted for consideration toward a student's course grade is to be attempted and completed on an INDIVIDUAL BASIS. 3. Cell Phones. Cell phones should be turned off during class. Cell phones are not allowed to be used at all during exams. 4. Honor Code. The Florida Atlantic University Honor Code governs all student activities throughout this course. A fundamental principle of academic, business, and community life is honesty. Violation of this ethical concept shall result in penalties ranging from a grade of F in the course to dismissal from the University. In all penalties, a letter of fact shall be included in the student s file. The honor code is available in the catalog.

3 5. Professional Conduct. To foster a more professional learning environment and to develop habits that lead to success in the business work, all participants must engage in professional behavior, including: taking responsibility for individual actions and attending each class session, including arriving promptly and leaving at the designated time. Attendance sign-in sheets may therefore be used and excess absences may impact the participation grade. Students are expected to be attentive and an active participant in group activities and class discussions. Other responsibilities include respecting diversity in the classroom and treating everyone involved in the class in a civil manner, planning outside activities to avoid conflicts with the activities outlined in the syllabus, meeting all deadlines in the course for assignments, projects, etc. and acknowledging the importance of clarity of expression in written and oral communication and understanding that the course grade will be affected by your ability to communicate. 6. ADA. Students may seek accommodations in accordance with the Americans with Disabilities Act of Students with disabilities needing academic accommodations should review the University s ADA Policy and work the Office for Students with Disabilities (OSD). Students who require special accommodation due to a disability to properly execute coursework must register with the OSD and follow all OSD procedures. 7. Turnitin. Written components of any assignment or project may be submitted to Turnitin to evaluate the originality of the work. Any students found to be submitting work that is not their own will be deemed in violation of the University s honor code discussed above. 8. Missing Exams. Make-up exams will not be given for any reason. If you have a valid reason for missing an exam, (medical emergency, family emergency, universityscheduled events, religious observation, or class conflicts), you must take the comprehensive final. 9. Withdrawals. Students are responsible for withdrawing from the class. Deadlines for withdrawal can be found on the academic calendar on the university web page. 10. Incompletes. There are no incompletes for this course except in the case of extraordinary circumstances (for example, excessive absences due to severe illness). The instructor determines when an incomplete is appropriate. In no case can an incomplete be given unless the student is passing the course with a C or better at the time the incomplete is requested. 11. Points Awarded. It is the responsibility of the student to monitor the points awarded todate in blackboard. During the semester, the student has up to two weeks following the posting of any points to contest the number of points, after which the points are considered final. 12. Electronic Communication. Blackboard and FAU will be used in this course for content delivery, homework, and other communications. Accordingly, it is the student s responsibility to check the Blackboard site and his/her FAU account for announcements, etc. Students are responsible for ensuring that the correct address is used for blackboard. Make sure you account does not get full.

4 13. Religious Holidays. It is the responsibility of the student to promptly notify the professor of any conflicts due to religious observance so that accommodations can be arranged. 14. Hurricanes. In the event of a hurricane or tropical storm (or other disasters), the class will meet in accordance with the university policy. Classes cannot be individually cancelled by the instructor, although assignments and exams may be modified or postponed. Students should monitor university and blackboard announcements. Grade Determination: The grades will be based on the following: Participation and professionalism 50 points Quizzes on Auditing Standards 100 points 3 Exams 270 points Student Group Presentation on an Auditing Standard 60 points Vouch and Trace Group Project 60 points Analytical Procedures Group Project 60 points 600 points The following weights will be used. A C A D B D B D B F Below 60 C C Course Schedule and Topics: Note: The following schedule is subject to change. Students should refer to blackboard for syllabus updates. Date Topic Readings and Recommended Homework (Multiple Choice and Review questions are recommended for every chapter). January 6 Syllabus and Class Overview January 8 An Overview of Chapter 1 the Auditing Process January 13 The Financial Chapter 2 Statement Auditing Environment January 15 In-class Video Frontline Video: Bigger Than Enron (a video about the events that lead to the

5 January 20 January 22 The Financial Statement Auditing Environment Online Exercise/Class Quiz 1 Generally Accepted Auditing Standards (AU 150) Audit Reports Quiz 2 Due Professional Care / Reasonable Assurance (AU 230) Quiz 3 Independence and competence (AU 210 & AU 220) demise of Arthur Andersen and the creation of the Sarbanes Oxley Act) Chapter 2 Chapter 18 January 27 Audit Reports Chapter 18; Chapter 7, pp Quiz 4: Audit reports (AU ) January 29 February 3 Professional Conduct, Independence and Quality Control Professional Conduct, Independence and Quality Control Chapter 19 Chapter 19 February 5 Quiz 5: System of Quality Control for a CPA Firm (QC 20) February 10 Legal Liability Chapter 20 February 12 Legal Liability Chapter 20

6 February 17 Online Exam 1 No formal class. Students are to take an exam on Blackboard which can be taken during the scheduled class period if the student elects to do so. Last date to take the exam is October 5 at midnight. February 19 Risk Assessment and Materiality February 24 Risk Assessment and Materiality Chapter 3 February 26 March 10 March 12 Quiz 6: Audit Risk and Materiality (AU 312 paragraphs 4 30) Audit Evidence and Audit Documentation Discussion of Analytical Procedures Assignment Quiz 7: Audit Evidence (AU 326) Audit Planning and Types of Audit Tests Quiz 8: Planning (AU311 paragraphs 5-27) Audit Planning and Types of Audit Tests; Internal control in a Financial Chapter 4 Chapter 5 Chapter 5 and 6

7 statement audit March 17 March 19 Presentations, Groups 1, 2 and 3 Internal Control in a Financial Statement Audit Chapter 6 March 24 Internal Control over Financial Reporting March 26 Online Exam 2 No formal class. Students are to take an exam on Blackboard which can be taken during the scheduled class period if the student elects to do so. March 31 SAMPLING and Predicting the President of the United States How that relates to Auditing Audit Sampling: An Overview and Application of Tests of Controls April 2 Audit Sampling: An Application to Substantive Tests of Account Balances Quiz 9: Audit Sampling (AU 350 paragraphs 1 14) April 7 Auditing the Revenue Cycle April 9 Quiz 10: The Chapter 7 Chapter 8 Chapter 8 Chapter 9 Chapter 10

8 Confirmation Process (AU 330) April 14 Completing the Engagement April 16 Group 4 Presentation Group 5 Presentation Group 6 Presentation April 21 Online Exam 3 No formal class. April 28 at 12 noon Optional Online Comprehensive Final: (last date to take the optional final exam. Access to exam expires at noon.) Chapter 17 This optional final replaces any missed exam and can replace a low grade if the student elects to take it.

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