Accounting Auditing Theory and Practice Spring 2015

Transcription

1 Accounting Auditing Theory and Practice Spring 2015 Professor: Dr. Craig R. Ehlen Office hours: Office: BE 3011 Office phone: (812) MW: 9:00 10:00 a.m. Home phone: (812) W: 5:00 6:00 p.m. Fax: (812) (and also by appointment) Web site: Course Description This course provides an overview of auditing as it is practiced in the United States of America. This includes a basic understanding of the functions of an audit, the legal and regulatory environments in which auditing takes place, the ethical and professional standards that apply to auditors, the concepts of risk analysis, risk-based auditing, and statistical sampling, and an introduction to the techniques typically used to gather sufficient competent evidential matter in an audit engagement. Course Objectives By the time students finish this course, they should be able to: Explain the role of CPAs in American society. Demonstrate an understanding of generally accepted auditing standards. Explain the concept of independence as it applies to CPAs. Determine appropriate professional behavior in various situations using the AICPA s Code of Professional Conduct. Explain the concept of accountants legal liability under Common Law and Statutory Law. Apply analytical procedures to comparative financial statements. Use the results of analytical procedures to identify red flags of audit risk. Explain the basic principles for using statistical sampling techniques in auditing. Describe the five different types of audit reports issued by CPAs. Determine the appropriate type of audit report to use in given circumstances. Prerequisites Accounting 303 (Accounting 304 and 401 highly recommended, but not required). Senior standing (must have completed at least 93 semester hours before enrolling in this course).

2 Accounting Spring 2015 (continued) Skills Evaluation The skills being developed in this course, as described in the Course Objectives above, will be evaluated as follows: Four comprehensive in-class examinations. A comprehensive group project emphasizing analytical thinking. Required text: Optional text: Principles of Auditing (19th edition), Whittington and Pany Auditing & Systems: Exam Questions and Explanations (17th Edition) Gleim and Hill Grading: First exam 100 points 20% Second exam 100 points 20% Third exam 100 points 20% Final exam 50 points 10% Computer assignment 100 points 20% Internet assignment/quizzes/ Class participation 50 points 10% 500 points 100% Attendance: Homework: Examinations: Attendance is important and expected. Remember that class participation has a bearing on your grade, and you can only participate if you attend class. Excessive absences (more than one) can result in a lower grade or even course failure. Working homework problems is critical to your success in accounting. Using the CPA Review or EQE books is HIGHLY recommended. Unexcused absences from a test will result in a grade of "0" for that exam. NO MAKE-UP EXAMS WILL BE GIVEN. Any points relative to an excused absence will be carried over to a separate final exam, which will be comprehensive.

3 ACCOUNTING TENTATIVE SCHEDULE SPRING 2015 M-W 3:00 4:15 P.M. ROOM BE 3023 DATE DAY TOPIC Jan. 12 M Introduction 14 W Chapter 1 19 M Martin Luther King Day no class 21 W Chapters 1 and 2 26 M Chapters 2 and 3 28 W Chapter 3 Feb. 02 M Chapters 3 and 4 04 W Chapter 4 Internet assignment due 09 M Chapter 5 11 W EXAM # 1: Chapters M Review Exam # 1, Chapters 5 and 6 18 W Chapter 6 23 M Chapters 6 and 7 25 W Chapter 7 Mar. 02 M Chapters 7 and 9 04 W Chapter M W Spring vacation no class 16 M Chapter 9 18 W EXAM # 2: Chapters 5, 6, 7, and 9 DRAFT COMPUTER PROJECT DUE 20 F Last day to withdraw without evaluation 23 M Review Exam # 2 - Chapter W Chapters 10 and M Chapter 11 Apr. 01 W Chapters 11 and M Chapters 12, 13 and W Chapters 14, 15 and M Chapter W EXAM # 3: Chapters FINAL COMPUTER PROJECT DUE 20 M Review Exam # 3 - Chapter 17 overview 22 W Chapter M Chapter 17 May 01 F FINAL EXAM: 3:00 P.M. 5:00 P.M.

4 ACCOUNTING 415 AUDITING THEORY AND PRACTICE COMPREHENSIVE ASSIGNMENT SCHEDULE Chapter Topic Problems 1 The Role of the Public Accountant 28, 33, 34 in the American Economy 2 Professional Standards 28, 30 3 Professional Ethics 27, 29, 32, 33, 35 37, 38, 39, 41, 45 4 Legal Liability of CPAs 3, 12, 28, 29, 30, 31, 32 5 Audit Evidence and Documentation 43, 46, 47, 51, 52 6 Audit Planning, Understanding the Client, 38, 42, 48 Assessing Risks, and Responding 7 Internal Control 29, 35, 40 8 Consideration of Internal Control in an 29 Information Technology Environment 9 Audit Sampling 23, 37, Cash and Financial Investments 35, 37, Accounts Receivable, Notes Receivable, 26, 27, 35, 40, 47 and Revenue 12 Inventories and Cost of Goods Sold 24, 29, 33, Property, Plant and Equipment: 1, 9, 10, 32 Depreciation and Depletion 14 Accounts Payable and Other Liabilities 33, Debt and Equity Capital 30, Auditing Operations and 36, 38, 39 Completing the Audit 17 Auditors' Reports 25, 26, 27 28, 30

5 ACCOUNTING 415 ADDITIONAL CONSIDERATIONS Advising: Career advising is available through your academic advisor or other accounting professors. Please take advantage of this opportunity to have your questions answered or to discuss the career paths open to accounting graduates. Please call for appointments. Plagiarism: Students are reminded of the Romain College of Business expectations regarding the avoidance of plagiarism, which includes (but is not limited to): (1) failing to cite quotations and borrowed ideas, (2) failing to enclose borrowed language in quotation marks, and (3) failing to put summaries and paraphrases in your own words. (Source: Diana Hacker, A Pocket Style Manual, 2e, Boston: Bedford/St. Martin s, 1997, p. 92.) Students are specifically reminded that electronically copying text from a source document, such as a web page, and pasting that into one s own document without putting the borrowed language in quotation marks is plagiarism, even if the source of that language is included in an in-text citation and reference list. Simply put, borrowed language must be set off in quotation marks. Second, even if this language borrowed from a secondary source is appropriately referenced, Romain College of Business faculty expect more from students. Copying and pasting someone else s words and ideas into a document file does not demonstrate your understanding of the material. Secondary sources are appropriate and necessary for a research project, but your contribution should involve more than simply assembling the words and ideas of others. Cell phones and other communications devices: The use of cell phones, BlackBerrys, iphones, ipads, ipods and similar devices is not allowed in the classroom. All such devices must be turned off upon entering the classroom. No texting is allowed during class. Any cell phone or other device that disrupts the class will be confiscated and turned over to the Dean of the Romain College of Business for follow-up. Students honestly expecting emergency communications during class must obtain the permission of the professor before class begins.