Course Description:

This course is a study of the standards, principles, practices and procedures of auditing. Students are required to integrate and apply prior accounting coursework.

Prerequisites:

ACC 210, 211, 300, 301

Textbooks: Auditing: An Integrated Approach, eighth edition, Arens/Loebbecke

Handout Materials

Statement of Plagiarism:

If an instructor or other Calumet College of St. Joseph personnel find that a student has plagiarized or been involved in another form of academic dishonesty, the instructor or other personnel may elect to bring the matter up for judicial review. The maximum penalty for any form of academic dishonesty is dismissal from the College. The procedures for judicial review are listed under the section of this handbook that addresses student grievances.

Calumet College of St. Joseph adheres to citation guidelines as written in the Publication Manual of the American Psychological Association, Fourth Edition. A copy is available from the Calumet College of St. Joseph bookstore. This text outlines how to cite references from a variety of sources, including electronic media.

Withdrawal from Classes Policy:

After the last day for class changes has passed (see College calendar), students may withdraw from a course in which they are registered with permission from the faculty member conducting the course. A written request detailing the reason(s) for the withdrawal must be filed with the Registrar. Written request for withdrawal must be received by the Registrar by the last day of classes prior to the final examination dates specified in the catalogue. Written requests may be mailed to the Registrar or faxed to the College fax number 219-473-4259. Students are to make note of the refund schedule when withdrawing from courses. The request is forwarded to the faculty member, who makes the final determination to accept or deny the request. If the request is honored, the student will receive notification of official withdrawal; if denied, the notification will indicate why the withdrawal is disallowed. Note: Degree Completion Division (DCD) students should consult the DCD Student Handbook for information on DCD withdrawals.

An official withdrawal is recorded as a "W" grade on the student's transcript. Dropping a

course without written permission automatically incurs an "F" grade for the course (see

Refund Schedule).

Class Policy on Attendance: Attendance at all class sessions is important. Advance notice should be given of any anticipated absence. Your absence from six class sessions will reduce your grade one level.

Class Policy For Assignments: All problems must be turned in at the end of the class period for which they are assigned. Late class assignments will not be accepted without approval prior to the due date. Excessive missed assignments could reduce grade one level.

Course Objectives:

Upon completion of this course the student will be able to:

1. Describe assurance services and distinguish audit services from other assurance and nonassurance services.

2. Differentiate the three main types of audits.

3. Describe the nature of CPA firms, what they do, and their structure.

4. Identify quality control standards and practices within the accounting profession.

5. Describe the parts of the standard unqualified audit report.

6. Describe the five circumstances when an unqualified report with an explanatory paragraph or modified wording is appropriate.

7. Resolve ethical dilemmas using an ethical framework.

8. Apply the AICPA code rules and interpretations on independence and explain their importance.

9. Describe accountants’ liability to clients and related defenses.

10. Specify what constitutes criminal liability for accountants.

11. Explain the objective of conducting an audit of financial statements.

12. Explain the relationship between audit objectives and the accumulation of audit evidence.

13. Identify the four audit evidence decisions that are needed to create an audit program.

14. Preplan an audit.

15. Apply the concept of materiality to the audit.

16. Define risk in auditing.

17. Explain the five components of internal control.

18. Select the appropriate types of audit tests.

19. Integrate the audit evidence gathered and evaluate the overall audit results.

Assessment:

Mid Term Exam 35 % of grade

Final Exam 35 % of grade

10 Short Quizzes 15 % of grade

Homework 10 % of grade

Class participation/collaboration/attendance 5 % of grade

Grading Scale:

A: 93 A-: 90 B+: 88 B: 83 B-: 80 C+: 78

C: 73 C-: 70 D+: 69 D: 67 D-: 65 F: Below 65

Class Assignments

Class Date Topic-Assignment

May 1 Introduction to Course Outline. General discussion of auditing.

Chapter 1 – The Demand For Audit And

Assurance Services

Chapter 2 – The CPA Profession

Homework Ch 1 – Review Questions 1 - 11

Multiple Choice 12, 13

Homework Ch 2 – Review Questions 1 - 12

Multiple Choice 13 – 14

May 8 Read Chapter 3 – Audit Reports

Read Chapter 4 – Professional Ethics

Homework Ch 3 – Review Questions 2, 4, 6, 8, 10, 12, 14, 16, 18, 20

Multiple Choice 21, 22

Homework Ch 4 – Review Questions 1 – 17

Multiple Choice 18, 19

QUIZ – Ch 1 & 2

May 15 Read Chapter 5 – Legal Liability

Homework Ch 5 – Review Questions 1 - 15

Multiple Choice 16, 17

QUIZ – Ch’s 3 & 4

May 22 Read Chapter 6 – Audit Responsibilities and Objectives

Homework Ch 6 – Review Questions 1 - 17

Multiple Choice 18, 20

QUIZ – Ch 5

May 29 Read Chapter 7 – Audit Evidence

Homework Ch 7 – Review Questions 1, 3, 5, 7, 9, 11, 13, 15, 17, 19

Multiple Choice 20, 21

QUIZ – Ch 6

June 5 Read Chapter 8 – Audit Planning and Documentation

Homework Ch 8 – Review Questions 1, 3, 5, 7, 9, 11, 13, 15, 17, 19, 21

Multiple Choice 22 - 25

QUIZ – Ch 7

June 12 MID TERM EXAM – Covers Ch’s 1 through 8

June 19 Read Chapter 9 – Materiality and Risk

Read Chapter 10 – Internal Control and Control Risk

Homework Ch 9 – Review Questions 2, 4, 6, 8, 10, 12, 14, 16, 18, 20

Multiple Choice 22 – 24

Homework Ch 10 – Review Questions 1, 3, 5, 7, 9, 11, 13, 15, 17, 19

Multiple Choice 20 - 22

June 26 Read Chapter 11 – The Impact of Information Technology on the Audit Process

Homework Ch 11 – Review Questions 1 - 15

Multiple Choice 16, 17

QUIZ – Ch 9 & 10

July 3 Read Chapter 12 – Overall Audit Plan and Audit Program

Homework Ch 12 – Review Questions 2, 4, 6, 8, 10, 12, 14, 16, 18, 20

Multiple Choice 21 - 23

QUIZ – Ch 11

July 10 Read Chapter 13 – Audit of the Sales and Collection Cycle

Homework Ch 13 – Review Questions 1, 3, 5, 7, 9, 11, 13, 15, 17, 19

Multiple Choice 20 – 22

QUIZ – Ch 12

July 17 Read Chapter 14 – Audit Sampling for Tests of Controls and Substantive Tests of Transactions

Homework Ch 14 – Review Questions 2, 4, 6, 8, 10, 12, 14, 16, 18, 20

Multiple Choice 22 - 24

QUIZ – Ch 13

July 24 Read Chapter 23 – Completing the Audit

Homework Ch 23 – Review Questions 1 - 17

Multiple Choice 18 – 20

QUIZ – Ch 14

July 31 FINAL EXAM – Covers Ch’s 9 through 14 and Ch 23