CREDIT WEIGHT AND WEEKLY TIME DISTRIBUTION: credits 3(hrs lect 3 - hrs sem 0 - hrs lab 0)
COURSE DESCRIPTION: Examines the economic role of financial statement auditing for public companies, addressing ethical requirements such as independence, competence and objectivity, management of audit engagements, audit objectives, analytical procedures, major accounting cycles, internal control and audit objectives, evidence gathering techniques, sampling, and reporting.

Prerequisites: BUSI 354
COURSE MATERIALS: Text: Alvin A. Arens, Randal J. Elder,  Mark S. Beasley, Ingrid B. Splettstoesser,  Auditing: The Art and Science of Assurance Engagements, Canadian Twelfth Edition (2013);
Assignments 30%
Mid-term exam 30%
Final Exam 40%
COURSE OBJECTIVES: Upon successful completion of this course, students will be able to:
  • 1 Explain the role of auditors and audit standards.
    • Differentiate and explain the difference between the role of an auditor and accountant.
    • Explain quality control standards.
  • 2 Plan an audit.
    • Explain the audit standards that an auditor must comply with.
    • Explain client acceptance and retention procedures and evaluate the desirability of accepting or retaining a client.
    • Assess audit risk, determine materiality.
  • 3 Evaluate an entity’s control environment.
    • The following concepts, skills, and issues are used to support this Outcome:
    • Explain the impact of COSO, entity-level and internal controls.
    • Evaluate an audit client’s key internal control strengths and weaknesses and recommend areas for improvement.
  • 4 Recommend procedures to evaluate the internal control environment and audit key account balances.
    • Explain sampling risk and sampling techniques.
    • Create an audit plan by integrating our assessment of management assertions and objectives over account balances and transactions.
    • Design audit procedures and evaluate the quality and types of audit evidence.
  • 5 Differentiate between assurance engagements and the reports used in each.
    • Evaluate the evidence obtained and finalize the engagement.
    • Recommend an appropriate audit report.
    • Distinguish between the different types of assurance and non-assurance services.
  • Lesson 1:        Introduction to Auditing (Chapters 1 and 2)
  • Lesson 2:        Auditor's Report and Responsibilities (Chapters 4 and 19)
  • Lesson 3:        Professional Ethics, Audit Objectives, Phases of the Audit, and Audit Evidence (Chapters 3, 5, and 9)
  • Lesson 4:        Audit Planning, Materiality, and Risk (Chapters 6 and 7)
  • Lesson 5:        Introduction to Internal Control, Assessment of Control Risk, and Audit Program Concepts (Chapters 8 and Chapter 10)
  • Lesson 6:         Audit Sampling (Chapter 11)
  • Lesson 7:        Audit of the Sales and Receivables Cycle and Cash Balances (Chapters 12 and 17)
  • Lesson 8:        Audit of the Acquisition and Payment Cycle (Chapter 13)
  • Lesson 9:        Audit of the Inventory and Payroll Cycles (Chapters 14 and 15)
  • Lesson 10:      Completion of the Audit and Fraud (Assessment and Management) (Chapter 18 and Chapter 6 [pp. 148–155 only])

Required texts, assignments, and grade distributions may vary from one offering of this course to the next. Please consult the course instructor for up to date details.

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