Embedded Files
Syllabus
Auditing (I)
Fall 2010
Text::
Ranold J. Elder,Mark S. Beasley, Alvin A. Arens, Auditing and Assurance Service, "An Integrated Approach", Pearson Education Inc., Upper Saddle River, New Jersey, USA, 13th. Edition, 2010.
Student Companion Site:: http://wps.pearsoned.co.uk/ema_ge_arens_audit_13/
Class::
Male/Female: SST 09:00 – 10:00, Rm.: A2-503
Instructor::
eMad AbuShaaban, CPA (PAL)
MSA, Master of Science in Accounting /USA
MMD, Master in Management Development /SPAIN
Inception Phase, Ph. D in Accounting /EGYPT
Office Hour::
Tue, Thu 9:00 - 10:00 or
By Appointment, Cellular: 0599 885 448,
Email: emad.abushaaban@gmail.com
Objective::
This course introduces the audit and assurance services and the public accounting profession, it illustrates audit reports, it explains legal liability and professional ethics, it demonstrates audit responsibilities and objectives. Also, it presents audit evidence, illustrates audit planning and analytical procedures. It explains materiality and risk, also, it presents section 404 audits of internal control and control risk. It explains fraud auditing, the impact of information technology on the audit process. Finally, it concludes the overall audit plan and audit program.
Class::
Lecture, class discussion, problem solving, assignment presentation Format and computer lab if it was possible.
Assignment::
For full credit, assignments must be submitted at the beginning of class on the date due. Late assignments are accepted unless (1) they are discussed in class or (2) the start of final exams . Grads on assignments are reduced proportionate to the extent that they are late.
Workgroups:
Group study and discussion outside of class is encouraged. Group work on assigned exercises and problems from the text is acceptable only if each student submits his or her own copy of the assignment (Note: reproductions are not acceptable.)
Grading Scale:
Assignments 20%
Mid-term Exam 10%
Presentation 15%
Final Examination 55%
Examination questions are tested for validity. If 60% or more of those who respond to a question give an incorrect answer, that question (or part of a question) will be invalidated and the basis of the examination adjusted; equivalent extra credit is added to the score of those students who answer the question correctly.
Week #1
CHAPTER 1: AUDIT AND ASSURANCE SERVICES
Presentations:
1. Where Were The Auditors?, pp2
2. Sarbanes –Oxley Act Brings Unexpected Benefits, pp7
3. Competition in Newspaper Circulation Audit, pp11
4. Top Ten Technologies for Accountants, pp14
5. Forensic Accounting: Hot on The Trail Around The World, pp16
Assignments:
1. RQ1-1, RQ1-3, RQ1-5, RQ1-7, RQ1-9, RQ1-11, RQ1-13
2. MCQ1-14,
3. DQ1-17, DQ1-9, DQ1-21
4. Internet Problem 1-1
Week #2
CHAPTER 2: THE PUBLIC ACCOUNTING PROFESSION
Presentations:
1. Good Auditing Includes Good Client Service, pp25
2. Auditing Standards Board Clarity and convergence project, pp34
3. Generally Accepted Auditing Standards, pp35
4. Elements of Quality Control, pp38
Assignments:
1. RQ2-1, RQ2-3, RQ2-5, RQ2-7, RQ2-9, RQ2-11, RQ2-13, RQ2-15
2. MCQ2-16,
3. DQ2-19, DQ2-21
4. Internet Problem 2-1
Week #3
CHAPTER 3: AUDIT REPORTS
Presentations:
1. The Audit Report Was Timely, But At What Cost?, pp45
2. Standard Unqualified report on comparative Statements, pp47
3. Separate Report on Internal Control Over Financial Reporting, pp50
4. Unqualified Shared Report, pp54
5. Audit Report for each Condition Requiring Departure form a Standard Unqualified Report.
Assignments:
1. RQ3-1, RQ3-3, RQ3-5, RQ3-7, RQ3-9, RQ3-11, RQ3-13, RQ3-15, RQ3-17, RQ3-19, RQ3-21
2. MCQ3-23, MCQ3-25,
3. DQ3-27, DQ3-29, DQ3-31, DQ3-32
4. Internet Problem 3-1
Week #4
CHAPTER 4: LEGAL LIABILITY
Presentations:
1. It Takes The Net Profit From Many Audits To Offset The Cost of One Lawsuit, pp77
2. International Affiliations Bring Legal Exposure, pp79
3. Cenco Incorporated v. Seidman & Siedman (1982), pp83
4. 1136 Tenants v. Max Rothenberg and Company (1967), pp84
5. Ultramares Corporation v. Touche (1931), pp83
6. Rusch Factors v. Levin (1968), pp86
7. Escott et al v. Barchris Construction Corporation (1968), pp88
8. Hochfelder v. Ernst & Ernst (1976), pp89
9. Howard Sirota v. Solitron Devices, Inc. (1982), pp90
10. Lessons Learned from Auditors Litigation, pp91
11. United States v. Andersen, (2002), pp92
12. Punitive Damage Waivers in Engagement Letters, pp94
Assignments:
1. RQ4-1, RQ4-3, RQ4-5, RQ4-7, RQ4-9, RQ4-11, RQ4-13, RQ4-15
2. MCQ4-17,
3. DQ4-19, DQ4-21, DQ4-23, DQ4-25, DQ4-27
4. Internet Problem 4-1
Week #5
CHAPTER 5: PROFESSIONAL ETHICS
Presentations:
1. The Value of The Audit Depends on Auditor Independence, pp103
2. Illustrative Prescribed Ethical Principles, pp104
3. Some Ethical Violations are more severe than others, pp108
4. Guidance for Meeting Objectives of Principles, pp111
5. Did Consulting Fees Jeopardize Independence?, pp116
6. Summary of Rules of Conduct, pp129
Assignments:
1. RQ5-1, RQ5-3, RQ5-5, RQ5-7, RQ5-9, RQ5-11, RQ5-13, RQ5-15, RQ5-17
2. MCQ5-19,
3. DQ5-21, DQ5-23, DQ5-25,
4. Case 5-27, Case 5-29
5. Internet Problem 5-1
Week #6
Midterm Exam
Week #7
CHAPTER 6: AUDIT RESPONSIBILITIES AND OBJECTIVES
Presentations:
1. Looking Closely at the Loans, pp141
2. Cable Moguls arrested for Corporate Looking, pp146
Assignments:
1. RQ6-1, RQ6-3, RQ6-5, RQ6-7, RQ6-9, RQ6-11, RQ6-13, RQ6-15, RQ6-17
2. MCQ6-19,
3. DQ6-21, DQ6-23, DQ6-25, DQ6-27, DQ6-29
4. Case 6-31,
5. Internet Problem 6-1
Week #8
CHAPTER 7: AUDIT EVIDENCE
Presentations:
1. Sometimes The Most Important Evidence is Not Found in The Accounting Records, pp174
2. Draft vs. Final: A Big Difference, pp178
3. Terms, Audit Procedures, and types of Evidence, pp187
4. Will It Stand Up in Court?, pp194
Assignments:
1. RQ7-1, RQ7-3, RQ7-5, RQ7-7, RQ7-9, RQ7-11, RQ7-13, RQ7-15, RQ7-17, RQ7-19, RQ7-21, RQ7-23, RQ7-25
2. MCQ7-27,
3. DQ7-29, DQ7-31, DQ7-33, DQ7-35, DQ7-37
4. Case 7-39,
5. Internet Problem 7-1
Week #9
CHAPTER 8: AUDIT PLANNING AND ANALYTICAL PROCERURES
Presentations:
1. The Fall of Enron: Did Anyone Understand Their Business?, pp210
2. All That Glitters Isn't Gold, pp213
3. Wild Day Caps Worst Week Ever for Stocks, pp216
4. Broader Focus on Risk Oversight, pp221
5. Key Parts of Planning, pp224
Assignments:
1. RQ8-1, RQ8-3, RQ8-5, RQ8-7, RQ8-9, RQ8-11, RQ8-13, RQ8-15, RQ8-17, RQ8-19, RQ8-21, RQ8-23
2. MCQ8-25, MCQ8-27
3. DQ8-29, DQ8-31, DQ8-33, DQ8-35, DQ8-37
4. Case 8-39,
5. Internet Problem 8-1
Week #10
CHAPTER 9: MATERIALITY AND RISK
Presentations:
1. A Moving Target, pp249
2. Illustration of Differing Evidence Among Cycles, pp260
3. Global Advertising, pp267
4. Relationship of Factors Influence Risks to Risks and Risks to Planned Evidence, pp268
Assignments:
1. RQ9-1, RQ9-3, RQ9-5, RQ9-7, RQ9-9, RQ9-11, RQ9-13, RQ9-15, RQ9-17, RQ9-19, RQ9-21
2. MCQ9-23
3. DQ9-25, DQ9-27, DQ9-29, DQ9-31, DQ9-33
4. Case 9-35,
5. Internet Problem 9-1
Week #11
CHAPTER 10: SECTION 404 AUDITS OF INTERNAL CONTROL AND CONTROL RISK
Presentations:
1. Rogue Trader Circumvents Controls Causing $7 Billion in Losses, pp289
2. Example Section 404 Management Report on Internal Control Over Financial Reporting, pp292
3. Audit Committee Effectiveness, pp296
4. COSO Enterprise Risk Management-Integrated Framework, pp298
5. Phantom Books, pp299
6. COSO Monitoring Guidance, pp301
7. COSO Components of Internal Control, pp302
8. SEC and COSO Focus on Smaller Public Companies, pp303
Assignments:
1. RQ10-1, RQ10-3, RQ10-5, RQ10-7, RQ10-9, RQ10-11, RQ10-13, RQ10-15, RQ10-17, RQ10-19, RQ10-21, RQ10-23, RQ10-25, RQ10-27, RQ10-29
2. MCQ10-31
3. DQ10-33, DQ10-35, DQ10-37, DQ10-39, DQ10-41
4. Case 10-42,
5. Internet Problem 10-1
Week #12
CHAPTER 11: FRAUD AUDITING
Presentations:
1. Accounting Scandals Rocks Public Trust, pp336
2. Fraudulent Financial Reporting Statistics, pp337
3. Last Deal for Turnaround Artist, pp339
4. PCAOB Consideration of Auditor Responsibility for Fraud Detection, pp342
5. Guidance for Managing Fraud Risk, pp345
6. Employers Beware, pp345
7. Everyday Values: the Harley-Davidson Code of Business Conduct, pp346
8. Example Elements for A Code of Conduct, pp347
9. Anheuser Busch's Audit Committee Chapter, pp349
Assignments:
1. RQ11-1, RQ11-3, RQ11-5, RQ11-7, RQ11-9, RQ11-11, RQ11-13, RQ11-15, RQ11-17, RQ11-19
2. MCQ11-21
3. DQ11-23, DQ11-25, DQ11-27, DQ11-29, DQ11-31
4. Case 11-32,
5. Internet Problem 11-1
Week #13
CHAPTER 12: THE IMPACT OF INFORMATION TECHNOLOGY ON THE AUDIT PROCESS
Presentations:
1. Just Because The Computer Did The Work Doesn't Mean It's Right, pp369
2. IT Glitch Halts Trading on London Stock Exchange, pp376
3. Processing Control, pp377
4. Examples of Auditing Around and Through the Computer, pp381
5. Common Uses of Generalized Audit Software, pp384
6. Cloud Computing, pp387
Assignments:
1. RQ12-1, RQ12-3, RQ12-5, RQ12-7, RQ12-9, RQ12-11, RQ12-13, RQ12-15,
2. MCQ12-17
3. DQ12-19, DQ12-21, DQ12-23, DQ12-25, DQ12-27, DQ12-29
4. Case 12-30,
5. Internet Problem 12-1
Week #14
CHAPTER 13: OVERALL AUDIT PLAN AND AUDIT PROGRAM
Presentations:
1. How Much and What Kind of Testing Will Get The Job Done?, pp401
2. pp405Illustration of Tests of Control, pp405
3. SEC Sanctions Auditor for Lack of Audit Program, pp415
4. Revising Audit Programs for Greater Efficiency, pp421
5. Relationship Among Five Key Evidence- Related Terms, pp422
Assignments:
1. RQ13-1, RQ13-3, RQ13-5, RQ13-7, RQ13-9, RQ13-11, RQ13-13, RQ13-15, RQ13-17, RQ13-19, RQ13-21
2. MCQ13-23
3. DQ13-25, DQ13-27, DQ13-29, DQ13-31, DQ13-33, DQ13-29
4. Case 13-35,
5. Internet Problem 13-1
Week #15
WRAP UP AND CONCLUDING
Week #16
Final Exam
Good Luck
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