SYLLABUS

Course Description:

This course provides an introduction to auditing and other assurance services for students who have not had significant exposure to auditing concepts or significant auditing experience. The primary emphasis of the course is on the auditor’s decision-making process and the nature and amount of audit evidence needed to render an opinion on the fairness of an organization’s financial statements. Topics include professional standards, audit and review objectives, the audit risk model, audit evidence, development and execution of compliance and substantive audit strategies, sampling methods and audit reports.

Course Objectives:

• To understand the purposes, benefits and disadvantages of auditing and assurance engagements, and the responsibilities of both management and the auditor.
• Be able to explain the environment within which audit and assurance engagements are conducted, and the impact that the environment has upon such engagements; identify and discuss relevant standards and legislation that are part of this environment.
• To describe and assess the processes involved in conducting a financial statement audit, including risk assessment, planning, execution and reporting.
• At a detailed level, to understand the objectives associated with a financial statement audit, and to design audit procedures for specific audit objectives, in the context of risks (analytical review, control procedures, tests of details, sampling).
• To improve analytical and communication skills.

Text:

Alvin A. Arens, Randal J. Elder, Mark S. Beasley and Ingrid Splettstoesser-Hogeterp (2011), Auditing: The Art and Science of Assurance Engagements, Canadian Eleventh Edition, Pearson Canada Inc.

Instructional Methodology:

The course will consist of a weekly lecture and discussion of cases. You are expected to come to class prepared and participate in the discussions. Large of amount of materials are covered quickly and each lecture builds on the previous ones; thus, it is important for you to remain current. It is also essential to master the basic concepts early in the course in order to grasp the more difficult ones later on. The textbook is for reference only (i.e., I do not teach the text). I will use PowerPoint formatted class notes that are copyrighted (and thus cannot be posted or otherwise reproduced). The use of laptops or hand-held devices is not permitted in the classroom.

Office Hours:

Mondays 12:30 - 14:20 or by appointment

Evaluation and Grading:

Letter grades will be assigned in accordance with the norms established by the Faculty of Business Administration

and your grade will be determined by the following:

Cases will be solved as group assignments. In the first week of class, students will be divided into groups of four. Two cases will be assigned during the semester. A formal report, which will be marked for content, clarity, and professionalism, will be due for each case. At the end of the semester, a peer-evaluation will be conducted to assess the contribution of each group member. The marks assigned to the cases will be weighted by the average score of the peer-evaluation. Instructions will be posted on the course website.

Class participation will be based on students' contribution to class discussions (e.g., critiques, analysis, thoughtful questions and comments) during the lectures. Emphasis is on the quality of the contribution. Students are expected to read the assigned materials before coming to class. Quizzes may also be administered during the semester to assess the level of preparation to the lectures.

Exams will consist of a mix of multiple-choice questions, short cases, and essays that will test materials contained in the textbook and/or discussed in class. The final exam is comprehensive.

	Topics	Read	Discussion Questions
May 17	The demand for an auditring and assurance profession The public accounting Profession Auditor Reporting (pp. 714-720)	Chap 1 Chap 2 Chap 22	1-13, 2-20, 22-25
May 31	Audit responsibilities and objectives Application of the Audit Process to the Sales Collection Cycle (pp. 445-453)	Chap 5 Chap 14	5-22, 5-24, 5-25
June 7	Audit Evidence Client Risk Profile and Documentation	Chap 6 Chap 8	6-18, 6-22, 6-23, 6-27, 8-22 parts (a) and (b) only
June 14	Materiality and Risk	Chap 7	7-18, 7-19, 7-20 7-25
June 21	Internal Controls and Control Risk Methodology for Designing Tests of Controls for Sales (pp. 455- 463) Test of Controls, for the Audit of the Acquisition and Payment Cycle (pp. 600-605)	Chap 9 Chap 14 Chap 18	9-22 parts (a) and (b) only, 9-24
June 28	MIDTERM EXAM
July 5	Fraud Auditing (pp. 344-369) Overall Audit Plan and Audit Program	Chap 11 Chap 12	11-26, 12-21, 12-23
July 12	Completing the Tests in the Sales and Collection Cycle: Accounts Receivable Audit of the Inventory and Warehousing Cycle	Chap 15 Chap 19	15-29, 19-18
July 19	Audit Sampling Concepts Audit of the Sales and Collection Cycle: Tests of Controls Sampling (pp. 481-486)	Chap 13 Chap 14	13-22, 13-26
July 26	Completing the Audit Audit Reporting (pp.720-737)	Chap 21 Chap 22	21-20, 22-22, 22-23
Aug 9	Audit Research
Aug 18	FINAL EXAM

Note: This course outline is subject to changes at the discretion of the instructor. All revisions will be posted here. Students are responsible for being familiar with any revisions to the course content.

IMPORTANT: Each student is expected to participate in work assigned during the semester. The marks obtained for work during the semester may be used in determining the final standing for the course. A passing grade in any examination does not ensure a passing grade for the course. Students who miss an examination because of illness or for compassionate reasons are required to obtain a physician's certificate or other supporting documents in order to obtain consideration in the course. Such documents must be filed with the instructor within four days of the date on which the examination was to have been written. If you miss the midterm examination and the instructor deems your reasons to be justified based on the documentation submitted, you will be allowed to take the final examination for 75% of the course mark; if you miss the final examination and the instructor deems your reasons to be justified based on the documentation submitted, a DE notation will be given and you will have to write a make-up final examination before the fifth day of classes of the semester immediately following the one in which the notation was awarded.