INTRODUCTION TO AUDITING ACCT 543 SPRING 2017 Professor: Scott N. Bronson, Ph.D., CPA Office: 4175 Capitol Federal Hall Office Phone: (785) 864-1043 Email: sbronson@ku.edu (please include ACCT 543 in the subject of any emails) Class Hours: M/W 11:00am-12:15pm, 1:00-2:15pm (in CAPF 3001) Office Hours: T/R 2:00-3:30pm, others by appointment REQUIRED MATERIALS Custom ACCT 543 Text (6th Custom Edition), ISBN: 9781323543153. This publication is the main textbook for the course, and it contains selected chapters and cases from the texts listed below. Please bring the text to class each day. Arens, A. A., R. J. Elder, M. S. Beasley, and C. E. Hogan. Auditing and Assurance Services: An Integrated Approach, 15th edition. Upper Saddle River: Prentice Hall, 2017. ISBN: 9780134065823. Beasley, M. S., F. A. Buckless, S. M. Glover, and D. F. Prawitt (Cases). Auditing Cases: An Interactive Learning Approach, 6th edition. Upper Saddle River: Prentice Hall, 2015. ISBN: 0133852105. COURSE OVERVIEW Course Objectives: This is an introductory course in auditing for students with limited previous exposure to auditing. The overall objective of this course is to help you obtain the skills, knowledge, and attitude to maximize the likelihood that you will be successful in an auditing career after graduation. The main objectives are to enable you to: 1. Learn about a business approach to auditing that emphasizes the relevance of general business and environmental knowledge awareness. 2. Describe the auditing/assurance services environment. 3. Explain the key auditing concepts and how they drive the audit. 4. Develop professional judgment as it relates to materiality, risk assessment, the application of generally accepted auditing standards, and the determination of sufficient appropriate evidential matter. 5. Describe how to accumulate and interpret audit evidence. 6. Describe the process involved in completing the audit. 7. Apply selected statistical sampling methods in auditing. 8. Describe the types of audit reports issued for publicly-held and privately-held companies. Nature of the Course: The course will be conducted using a mixture of lecture/problem solving and cooperative/team learning that strongly encourages your participation. You are expected to study the chapter readings and other assigned materials in depth prior to each class meeting and to attempt to solve any problems indicated on the syllabus for that given day. We will work on key problems or handouts in class as time permits. At all times, I expect you to maintain an appropriate professional attitude and pride of workmanship. All work submitted in this class is subject to a penalty for sloppy presentation, poor writing, or other characteristics that detract from the professionalism expected of you in your career in the business world. Your work should be clear, neat, concise, and of high quality.
GRADING Grades will be based on the total points earned in the course, as shown below. Description Points Exam #1 100 Exam #2 100 Final Exam 120 Case assignments 80 Quizzes 50 Professional conduct 50 Total 500 Final course grades will be based on a straight scale or a curve, whichever is more favorable. I will use the +/- grading system for the B and C categories, but I will not assign the A- grade. The straight scale is the worst case scenario, and it requires at least 87% of the points for an A, 84% of the points for a B+, 80% of the points for a B, 77% of the points for a B-, 74% of the points for a C+, 70% of the points for a C and so on. The need for an additional curve will be assessed after the final exam. I am available to discuss any concerns you have about your course grade or the grading of any particular assignment. Specific grading issues should be discussed in person and outside the classroom. On the other hand, I encourage you to ask any clarification questions in class when you receive your graded exams, quizzes, or cases. An important part of learning for you and your classmates comes from constructive discussions about commonly missed questions. You are probably not the only student who has your question, so please be sure to ask it. EXAMS I expect you to be in attendance for every exam. If you have an acceptable excuse for missing an examination (e.g., a death in the family or provable illness), you are responsible for informing me and obtaining permission to miss the examination before it takes place. Failure to obtain my permission prior to the exam is an unexcused absence, and you will receive a grade of zero on that exam. If you have an acceptable excuse and permission from me to miss an exam, I will modify the relative weight of the final exam to compensate for the missed exam. Note that Exam #2 is an evening exam that will be held from 5:50-7:50pm on Wednesday, March 29, in 3139 Wescoe. The Final Exam will be held on Thursday, May 11, from 7:30-10:00pm. With the exception of a non-programmable calculator (if necessary) and a pencil, personal items must be put away during the exams. This includes cell phones and smart watches. QUIZZES I will announce quizzes one class period in advance. The quizzes will begin promptly at the beginning of class. Late students will not receive extra time, and absent students will not be given make-ups. Instead, I will drop the lowest two scores in calculating your quiz grade at the end of the semester; I will give seven quizzes, and I will use five to calculate this grade component. The two dropped quizzes allow leeway for missed classes or late arrivals. I will make exceptions for serious, documented excuses (e.g., serious illnesses or religious holidays), but the two drops are intended to compensate for missed quizzes. To the extent that you know about such absences in advance, please discuss them with me as soon as possible before the absence occurs. Typically, each quiz will consist of five multiple-choice questions worth two points each, although other formats are possible. I will announce the quiz format at the time I announce the quiz. You are to answer all quiz questions without using the textbook, notes, or any other aids. The quizzes will usually relate to material already covered in the course.
CASES Most of the case assignments come from the Auditing Cases text, and many of these cases are included at the end of the custom textbook. These cases are designed to help apply the concepts we will cover during the course. We will complete the case assignments together during class time, but you also will be expected to complete some pre-case work before our class discussion. Prior to the case discussion dates, you will receive an assignment sheet indicating the specific pre-case assignment and any class discussion questions. Any pre-case deliverables are due by 9am on the day we discuss the case in class, and you will either complete or submit a pre-case assignment on Blackboard. Failure to complete the pre-case questions by 9am on the due date will result in a zero for that assignment. Be sure to bring a printout of any Blackboard submissions (other than the answers to multiple choice questions) with you to the case discussion. On most case discussion days, you will have time during class to discuss the case assignment with other students from your section. PROFESSIONAL CONDUCT I expect you to engage in appropriate professional behavior, and your professional conduct grade will include an assessment of this behavior. I expect you to arrive to class on time, dedicate your attention to this class during class time, be attentive while others are speaking, stay in the classroom until the end of class, be prepared each day, and communicate professionally. Professional preparation includes reading the assigned materials, attempting the assigned homework problems, engaging in class discussions, checking email regularly for periodic announcements/communications, and contributing sufficiently to in-class group assignments. The second component of your professional conduct grade deals with written and verbal communication skills, which are essential in the business world. With this in mind, it is particularly important that you practice professional communication in ACCT 543. Note that this not only includes the discussions that we have in the classroom and any formal written assignments you submit, but it also applies to any conversations and/or email communications that we have outside the classroom. I expect an appropriate level of formality in all email communications between us (e.g., do not start an email with Hey or Hey Professor ). I also expect you to use proper grammar, spelling, punctuation, etc. when communicating through email. Finally, you should only use email for easily answered questions, and you should send email messages so that I have a reasonable period of time to respond to them. Another important component of the professional conduct grade is class participation. The course format will include lectures, class discussions, and some in-class assignments. Your participation is essential for the class discussions and assignments, and it also enhances the lectures. As a result, I expect you to participate throughout the semester. Class participation includes attending class regularly, asking questions, answering questions posed to the class, contributing to class discussions, and providing answers when we go over any homework assignments. Your class participation will be evaluated based on whether it indicates that you are prepared for class on a regular basis, whether you demonstrate your preparedness in class, and whether you communicate your thoughts effectively. Answering questions incorrectly will not affect the participation component of your professional conduct grade.
TECHNOLOGY POLICY Out of respect for your fellow students, the educational process, your tuition dollars, and me, all electronic devices (cell phones, tablets, laptops, etc.) should be silenced and put away (i.e., not on the desk or on your lap) during class. If you feel you have an emergency situation that requires your phone to be available, please clear this with me before class begins. Students who disregard the policy will receive one courtesy reminder, and any subsequent violation will result in a reduction in your Professional Conduct grade by 5 points. An exception to this policy is when we are working on any in-class assignments that requires a tablet or a laptop, and I will indicate when it is okay to use these devices. ACADEMIC ACCOMMODATIONS The Academic Achievement and Access Center (AAAC) coordinates academic accommodations and services for all eligible KU students with disabilities. If you have a disability for which you wish to request accommodations and have not contacted the AAAC, please do so as soon as possible. They are located in 22 Strong Hall and can be reached at (785) 864-4064 (V/TTY). Information about their services can be found at http://www.access.ku.edu. Please contact me privately in regard to your needs in this course. COMMERCIAL NOTE-TAKING Pursuant to the University of Kansas Policy on Commercial Note-Taking Ventures, commercial note-taking is not permitted in ACCT 543. Lecture notes and course materials may be taken for personal use, for the purpose of mastering the course material, and may not be sold to any person or entity in any form. Any student engaged in or contributing to the commercial exchange of notes or course materials will be subject to discipline, including academic misconduct charges, in accordance with University policy. Please note: notetaking provided by a student volunteer for a student with a disability, as a reasonable accommodation under the ADA, is not the same as commercial note-taking and is not covered under this policy. ETHICAL BEHAVIOR Public confidence in auditing and assurance services begins with the ethical conduct of CPAs. Violations of ethical behavior in business have raised concerns about ethical expectations in academia. All students are expected to behave ethically in this class. In this regard, you should be aware of the definition of academic misconduct as defined in the University Senate regulations: Academic misconduct by a student shall include, but not be limited to, disruption of classes; threatening an instructor or fellow student in an academic setting; giving or receiving of unauthorized aid on examinations or in the preparation of notebooks, themes, reports or other assignments; or knowingly misrepresenting the source of any academic work. In addition, the School of Business adopted an Honor System that promotes academic integrity. As a student in a School of Business class, you are protected by and expected to conduct yourself in accordance with the Honor System. Information about the Honor System is available for you to read/review by following this link: http://business.ku.edu/honor-code.
TENTATIVE COURSE SCHEDULE ACCT 543 - SPRING 2017 Date Topic Reading Case 1 W: 01/18 Course Overview/Demand for Audits 2 M: 01/23 CPA Profession 1-18 3 W: 01/25 Audit Reports 23-38 4 M: 01/30 Audit Reports 38-49 5 W: 02/01 Audit Responsibilities 59-75...Get a Puppy... 6 M: 02/06 Management Assertions Types of Audit Evidence 7 W: 02/08 Audit Evidence Audit Documentation 75-86 103-117 97-103, 117-125 8 M: 02/13 Wrap-up for Exam #1 9 W: 02/15 EXAM #1 (IN-CLASS) 10 M: 02/20 Audit Planning 139-151 11 W: 02/22 Preliminary Analytical Procedures 151-154 Laramie Wire Manufacturing 11 M: 02/27 Materiality 154-163 Anne Aylor, Inc. 13 W: 03/01 Risk 181-203 14 M: 03/06 COSO Framework 217-239 15 W: 03/08 Control Risk 251-266 16 M: 03/13 SOX 404 Opinions 266-270 17 W: 03/15 Audit Plan/Program 293-319 NO CLASSES, SPRING BREAK 18 M: 03/27 Fraud 19 W: 03/29 NO CLASS; EXAM #2 (5:50-7:50PM, WESCOE 3139) 20 M: 04/03 Tests of Controls/STOT 331-355 21 W: 04/05 Tests of Controls/STOT Controlling Revenue 22 M: 04/10 Guest speaker on recent developments in the audit process 23 W: 04/12 Sampling for TOC 369-399 24 M: 04/17 Sampling for TOC Hooplah, Inc. - Part A 25 W: 04/19 Tests of Balances 413-436 26 M: 04/24 Tests of Balances RedPack Beer Company 27 W: 04/26 Sampling for Balances Hooplah, Inc. - Part B 28 M: 05/01 Audit Completion 455-478 29 W: 05/03 Audit Completion/Wrap up EyeMax Corporation R: 05/11 FINAL EXAM; 7:30-10:00PM (Location TBD)