Auditing (2)_en
Syllabus
Auditing (2)
Spring 2011
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
Dissertation 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 evidence, illustrates audit planning and analytical procedures. It explains materiality and risk, also, it explains section 404 audits of internal control and control risk. It elaborates on fraud auditing, and the impact of information technology on the audit process. It presents the overall audit plan and audit program. Moreover, it demonstrates The audit of the sales and collection cycle: Tests of Controls and Substantive Tests of Transactions, and Finally, it concludes the audit sampling for tests of controls and substantive tests of transactions
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 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 #2
Chapter 8: Audit Planning and Analytical Procedures
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 #3
Presentations and Assignment Solving
Week #4
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 #5
Chapter 10: Section 404 Audit 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 #6
Presentations and Assignment Solving
Week #7
Midterm Exam
Week #8
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 #9
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 #10
Presentations and Assignment Solving
Week #11
Chapter 13: Overall Audit Plan and Audit Program
Presentations:
1. How Much and What Kind of Testing Will Get The Job Done?, pp401
2. Illustration 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,
4. Case 13-35,
5. Internet Problem 13-1
Week #12
Chapter 14: Audit of The Sales and Collection Cycle: Tests of Controls and Substantive Tests of Transactions
Presentations:
1. The Choice is Simple – Rely on Internal Control, pp442
2. Overstated Revenues Keep Earnings Healthy, pp445
3. Risks of Going Concern, pp447
4. Transaction-Related Audit Objectives, pp452
5. Sales Can Be Returned (and Come Back to Haunt You), pp459
6. Transaction-Related Audit Objectives, pp461
7. Audit Program for Tests of Control, pp462
Assignments:
1. RQ14-1, RQ14-3, RQ14-5, RQ14-7, RQ14-9, RQ14-11, RQ14-13, RQ14-15, RQ14-17, RQ14-19
2. MCQ14-21, MCQ14-23
3. DQ14-25, DQ14-27, DQ14-29, DQ14-31
4. Case 14-33,
5. Internet Problem 14-1
Week #13
Presentations and Assignment Solving
Week #14
Chapter 15: Audit Sampling for Tests of Controls and Substantive Tests of Transactions
Presentations:
1. If You are Not Going to believe It, Don't Use It, pp477
2. Tax Stats, pp485
3. Audit Procedures, pp487
4. Attributes Defined, pp488
5. Guidelines for ARACR and TER for Nonstatistical Sampling: Test of Controls
6. Guidelines for ARACR and TER for Nonstatistical Sampling: Substantive Tests
Assignments:
1. RQ15-1, RQ15-3, RQ15-5, RQ15-7, RQ15-9, RQ15-11, RQ15-13, RQ15-15, RQ15-17, RQ15-19, RQ15-21
2. MCQ15-23
3. DQ15-25, DQ15-27, DQ15-29, DQ15-31, DQ15-33
4. Case 15-34,
5. Internet Problem 15-1
Week #15
Finalizing and Concluding
Week #16
Final Exam
Good Luck