ACCT 505 Advanced Auditing
Spring Semester 2015
Instructor:
Office:
Office Hours:
Office Phone:
Email address:
Daniel Fox (Dan)
MBEB 3117
1:00–4:30 W; 12:30-1:15 & 3:00-4:15 TuTh; by appointment
407-8120 (Cell)
[email protected]
Required text: Contemporary Auditing: Issues and Cases,10th Eddition, Michael C
Knapp (ISBN-10: 128506660X | ISBN-13: 978128506660). Additional class materials
will be provided including a complete detailed audit program; auditing standards; AICPA
and PCAOB technical publications, webcasts, and other materials; and international
accounting firm (PwC, EY, DT, and KPMG) topic specific materials including technical
publications and webcasts. These materials will be distributed in class or through the
course Blackboard site except for webcasts, which will be viewed in class.
Course Objective: This course will provide an understanding of the external auditing
environment including an overview of audit evidence, audit procedure design,
accumulation of audit evidence, and the process of determining fairness of financial
statements. We will examine both basic and extended audit procedures for all significant
areas noted below. The course will also include obtaining an understanding of the
underlying audit standards and how they are applied in practice. In this course we will
use instructor prompted discussions, small group discussions, student lead class
discussion, case based discussions, and presentations to explore the audit objectives of
each major audit area. The following are the more significant topical areas we will
consider:
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Client acceptance
Understanding the client business and its environment
Audit planning assessing risk (control, inherent, detection)
Audit materiality
Developing overall audit strategy
General audit planning audit program procedures
Cash audit program procedures
Accounts receivable and sales audit program procedures
Inventory and cost of sales audit program procedures
Property plant and equipment audit program procedures
Investments and derivatives audit program procedures
Other asset audit program procedures
Accounts payable and other liabilities audit program procedures
Notes payable and other long term debt audit program procedures
Income tax audit program procedures
Equity audit program procedures
Revenue and expense audit program procedures
General and completion audit program procedures
ACCT 505 Advanced Auditing
Spring Semester 2015
At the conclusion of the course students should have an understanding of the complete
audit process for both public company audits and private company audits.
Examinations: This is a seminar style class and there will be no examinations.
Attendance & Participation: Regular attendance is expected and necessary to achieve
success in this class because the bulk of the learning is based on in class instructor led
discussion, group analysis and discussion, student led class discussion, and significant
student presentations of technical material. If you are absent, it is your responsibility to
know the material covered and what assignments are due or schedule changes that have
been made. As discussed below attendance, preparation, and class participation are the
primary considerations in the assignment of grades. Please be considerate of your fellow
students by arriving on time—before the instructor begins class.
Papers: Students will be required to prepare 1-2 papers analyzing an audit case and
applying audit concepts discussed in class, included in the standards, and/or discussed in
various technical materials. Papers should be 5-7 double spaced pages in length and
written in accordance with the accepted Boise State and COBE standards for style.
Papers will be evaluated on content, demonstrated ability to conceptualize, analyze and
effectively explain difficult technical material, organization, style and grammar.
Student Presentations: Students will be organized into groups. Each group will be
required to prepare and deliver one or two major class presentation for a topic listed in
the course objective section. Presentations and ensuing class discussions are expected to
be approximately 60 minutes in length. Student presenters will be evaluated by both the
instructor and fellow students based on a number of factors including but not limited to
demonstrated level of preparation, organization, familiarity and grasp of the subject
matter, clarity of the presentation and explanation of subject matter, use of visual aids,
ability to engage non presenting class members in discussion, and whether understanding
of fellow students was improved. A rubric will be provided and used to evaluate the
presentations. Student presenters will also complete the rubric on themselves as part of
the self assessment process. Feedback from the evaluations will be summarized and
provided to the presenters. In addition to the major presentation students will frequently
be asked to present conclusions to the class from group analysis work done in class.
Homework: Homework will consist mainly of selected readings, which will be provided
to you either in class or through blackboard in advance of the due dates. Completion of
scheduled assignments in advance is an important factor for success in this course.
Performance Evaluation: Your course grade will be determined considering several
factors including but not limited to quality and frequency of class participation, quality of
required writing assignments, quality of class presentations and student led discussion,
and demonstrated level of preparation for each class. Each area will have 100 possible
points which will then be weighted in calculating the final grade using the following
relative weighting:
ACCT 505 Advanced Auditing
Spring Semester 2015
Writing assignments and papers
Major class presentation
Other class presentations and discussion
group leadership
Class participation (level. frequency and quality)
20%
30%
25%
25%
Generally, grades are assigned according to the following scale: 90-100 A, 80-89 B, 7079 C, 60-69 D, below 60 F.
Preparation: You are to prepare for class in accordance with the weekly topics
summarized below. Preparation includes reading related posted material and identifying
questions that you would like answered in class. Class participation is a vital aspect of
personal success as well as overall class success. In addition meaningful class
participation can not be achieved without careful preparation. Therefore it is extremely
important and your responsibility to yourself and fellow classmates to have assigned
reading and preparation complete prior to each class session.
In Class Small Groups: In class small groups to discuss and analyze various technical
topics are an important aspect of this class. Groups will have limited time to discuss,
organized thoughts, and conclude on selected topics. Groups will be required to lead a
general class discussion on their respective technical topic. This activity will allow us to
focus on one of the course goals, which is to strengthen your collaborative and team work
skills (COBE Core Goal 4).
Blackboard: Blackboard is used extensively to provide access to course materials,
important information, deadlines, handouts and announcements. Blackboard chat
sessions may be used to discuss current developments. Discussion topics requiring
student responses may be periodically posted. Most of these activities will be considered
in and are an important component of your final grade. CHECK BLACKBOARD
DAILY.
Shared Values
Boise State University upholds the following values as the foundation for a civil and
nurturing environment. Campus community members and all who are part of COBE are
expected to adhere to the following values.
Academic Excellence—engage in your own learning and participate fully in the
academic community’s pursuit of knowledge.
Caring—show concern for the welfare of others.
Citizenship—uphold civic virtues and duties that prescribe how we ought to
behave in a self-governing community by obeying laws and policies, volunteering
in the community, and staying informed on issues.
ACCT 505 Advanced Auditing
Spring Semester 2015
Fairness—expect equality, impartiality, openness and due process by
demonstrating a balanced standard of justice without reference to individual bias.
Respect—treat people with dignity regardless of who they are and what they
believe. A respectful person is attentive, listens well, treats others with
consideration and doesn’t resort to intimidation, coercion or violence to persuade.
Responsibility—take charge of our choices and actions by showing
accountability and not shifting blame or taking improper credit. We will pursue
excellence with diligence, perseverance, and continued improvement.
Trustworthiness—demonstrating honesty in our communication and conduct
while managing ourselves with integrity and reliability.
Dishonesty, cheating, or plagiarism will not be tolerated in any form. In accordance
with BSU policy, any instance of dishonesty in this class will result in dismissal from
class and a failing grade for the course.
Students in this class will learn or practice the following COBE Core Curriculum concepts,
methods, and skills:
1. Understand and apply analytical and disciplinary concepts and methods related to business
and economics:
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1.1. Accounting
3. Solve problems, including unstructured problems, related to business and
economics
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4. Use effective teamwork and collaboration skills
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5. Resolve ethical issues related to business and economics
WEEKLY CLASS DISCUSSION TOPICS AND RELATED PREPARATION
ASSIGNEMENTS APPEAR ON THE NEXT PAGE
ACCT 505 Advanced Auditing
Spring Semester 2015
ALL DATES BELOW SUBJECT TO CHANGE
DATE
WEEK
TOPIC
ASSIGNMENT/READING
Jan 12 1
19 2
26 3
Feb 2 4
9 5
16 6
23
7
Mar 2 8
9 9
16 10
Syllabus – Introduction and
course overview; Client
Acceptance
Syllabus
Rule 301 Confidentiality
Understanding the client
business, industry and its
environment
Assessing risk – control risk,
inherent risk, detection risk
and overall audit risk
Auditor responsibility for
detecting fraud
AU Sec 314 Understanding
the Entity and Environment
Audit materiality, and audit
strategy
Cash
AP-1 Audit Program for
General Planning
AP-3 Audit Program for
Cash
AP-4 Audit Program for
Accounts Receivable and
Sales
AP-5 and AP-6 Audit
Program for Inventory and
Cost of Sales
AP-7 Audit Program for
Property
AP-8 Audit Program for
Investments and derivatives;
AP-9 Audit Program for
Other Assets
Spring Break
Accounts receivable and
sales
Inventory
Property, Plant and
Equipment; Intangible Assets
Investments and derivatives
Other assets
23 11
Spring Break
30 12
Accounts payable and other
liabilities
Apr 6 13
Notes payable and long term
debt
Sales, Purchasing, Payroll
Overview Flow Charts
AU Section 312 Audit Risk
and Materiality
AP-10 Audit Program for
Accounts Payable and Other
Liabilities
AP-11 Audit Program for
Notes Payable and Long
Term Debt
ACCT 505 Advanced Auditing
Spring Semester 2015
13 14
Income Taxes
20 15
Equity
Income and expense
27 16
General and completion
May 5 17
Case Paper Due
AP-12 Audit Program for
Income Taxes
AP-13 Audit Program for
Equity; AP-14 Audit
Program for Income and
Expense
AP-2 Audit Program for
General and Completion
Procedures
Assigned Case