Virginia Polytechnic Institute and State University
Pamplin College of Business
Syllabus for ACIS 3414
Auditing, Governance, & Ethics
Spring 2014
Instructor: Sarah Stein
Office: 3102 Pamplin Hall
Email: sestein@vt.edu
Office hours: T/Th 3:30–5:00pm, W 3:30–4:30pm, and by appointment
Class time: T/Th 12:30–1:45pm in PAM 2003 (Section 10142)
T/Th 2:00–3:15pm in DER 1076 (Section 10141)
Website:
Scholar www.scholar.vt.edu
Required Texts and Materials:
1) Textbook: Auditing and Assurance Services 15th edition Pearson, by Alvin A. Arens, Randal
J. Elder, Mark Beasley (will also be used in ACIS 4414)
2) Additional ethics and corporate governance readings:
Print version – available at the bookstore (~$29)
eBook version – Go to www.mcgrawhillcreate.com/shop and enter ISBN #9781308051918
to purchase this version (~$16)
3) iClicker2 – can be purchased at the bookstore
Computer Resources:
Students are expected to have access to a personal computer system, including a printer, which
meets the minimum configuration for the Pamplin College of Business. For specific student
computer requirements, see the Pamplin College of Business Student Computer Purchase
Policy at http://www.cob.vt.edu/compute/ .
Course Objectives: This course is designed to provide you with an understanding of
professional auditing as practiced in the United States. Our discussions will focus on various
aspects of the auditing profession including external auditing, internal controls,
governmental/internal auditing, and ethics. Successful completion of this course will provide you
with a basic understanding of the following:
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Describe professional codes of ethics in the accounting profession.
Identify and evaluate alternative courses of action in addressing ethical dilemmas.
Understand the need for a strong ethical foundation in the accounting profession.
Describe the roles that accounting, auditing, ethics, internal controls, and accountability
play in creating governance systems.
Describe the meaning and purpose of external, internal, and governmental auditing.
Describe elements of well-functioning corporate governance systems.
Understand the professional standards for auditing and reporting on internal controls.
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Honor Code: Each student is expected to behave in a manner that brings honor to himself or
herself, to the student body, and to the university community. In keeping with this expectation,
students should be familiar with requirements of the Virginia Tech Honor System Constitution.
All class assignments are expected to be your original work. You are not permitted to use
solutions manuals, solutions from prior semester materials, or another student’s materials in
completing assignments or preparing for the exams. All university policies regarding cheating,
plagiarism, falsification, nonattendance, and illnesses will be strictly applied and enforced
in this course. All aspects of your coursework for this class are covered by Virginia Tech’s
Honor System. Any assignment submitted to the instructor will be considered graded work
unless otherwise noted. Please refer to your university catalog for these policies.
Special Accommodations: If you are a student with special needs or circumstances, if you have
emergency medical information to share with me, or if you need special arrangements in case the
building must be evacuated, please make an appointment with me during my office hours within
the first week of class to ensure adequate time to make the necessary arrangements.
Attendance: Students are expected to attend classes as scheduled. Should you miss a class, it is
your responsibility to get any missed assignments, class material, or announcements from a
classmate. If you must miss class for more than two days for any reason, you need to discuss
your individual situation with someone in the Pamplin College of Business Undergraduate Office
in Pamplin 1046.
Preparation and Participation: This course requires a substantial out-of-class time
commitment. Reading the assigned materials, completing cases, and thinking critically about
your reading and work will require much of you. Your active participation is encouraged and
expected. Not only will you personally benefit from such participation, but your classmates will
benefit as well. Given the nature of the course material, I expect that there will be some lively
discussions during the semester. Be prepared for class.
Assigned Readings: Primary responsibility for understanding the course material and in-class
discussions rests with you. Therefore, you should read all assigned materials indicated on the
Class Schedule prior to the class session during which the material will be discussed. I also plan
to add a few additional readings/handouts to various topics throughout the semester. Failure to
read the material prior to class will significantly hinder your ability to understand class
discussions. I highly recommend preparing a summary of each assigned reading prior to the
respective class period – this practice will not only help you gain a better understanding of the
course material, but will also help in studying for the exams.
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Clicker Points: I will be using clickers throughout the course as a learning tool as well as a
method for assigning points based on student effort. Please purchase an iClicker and register it
before class on February 4th. Specific instructions about registering your clicker are provided on
Scholar (iClicker tab). From February 4th through April 24th, I will assign 2 points for each class
period (20 class periods, excluding exam dates) based on some combination of attendance and/or
providing the correct answer based on the assigned readings. During student presentations (April
26th, May 1st, May 6th), I will assign 3 points for attendance during each class period.
Case Assignments: I have scheduled several individual and group case assignments for this
semester (see Class Schedule). These dates are tentative and may change throughout the
semester. These cases will be used to illustrate various issues covered during this course. With
the exception of the first case, you must be in class to complete and earn credit for these cases.
You will upload your completed case assignments to the “Assignments” folder on Scholar at the
end of class (or later if I allow/require additional work). I will assign 10 cases worth 10 points
each and will drop the lowest score. Therefore, your final grade will include a total of 90
possible points for case assignments. Late cases will be given a score of zero for the
individual/group.
Group Project: One component of your grade is a group project that includes a short written
report and a class presentation. You will form teams of four people for this project. The objective
of this project is to discuss ethical dilemmas, while also practicing written and oral
communication skills. You must create a written report for the case your team has selected that
addresses the instructions for this project. Written reports will be graded based on professional
appearance, grammatical correctness, style, accuracy, completeness and conciseness. You will
also present your summary in class as a group at the end of the semester (see Class Schedule). I
reserve the right to provide individual grades for any project, as opposed to a single grade for the
group based on group evaluations and discussions with team members. Creativity is encouraged!
Team members can meet with me to discuss their case beforehand during office hours. Specific
instructions will be provided in a separate document.
Exams: Exams may consist of multiple choice, matching, and/or short answer questions. There
will be a total of three exams during the semester, two midterm exams and one final exam. I
reserve the right to make the final exam comprehensive. The midterm exams will be given
during the scheduled class period, as noted in the Class Schedule. The final will be given
according to the university final exam schedule. You should make certain that you will be in
class on these dates. No makeup exams will be given. If circumstances make it impossible for
you to take a scheduled exam, it is your responsibility to contact me as soon as possible and to
provide appropriate documentation to validate your absence. A missed exam will count as zero
points, unless in my judgment the circumstances were compelling enough to warrant your
absence. If you have an excuse for missing the scheduled date for the final exam, then you need
to make alternative arrangements with me before the second midterm exam.
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Extra Credit Opportunity: Pamplin will be holding the 23rd annual Ethics Symposium on
Wednesday night, March 19, in Squires Haymarket Theater. More details will be provided about
the opportunity to attend and receive extra credit points for our class.
Grade Appeals/Corrections: If an error was made in grading an assignment/exam or in posting
a grade, you must notify me in writing within one week following the date that the
assignment/exam is handed back or reviewed in class. After that time, all grades become final.
Grading: These points are approximate and represent the relative portion of your final grade
contributed by each component of course work. The actual points may vary slightly. Final letter
grades will be assigned based on the total points earned. Points will not be rounded.
Points of
Final Grade
Grading
Scale
Points
Midterm Exams (100 pts each)
200 pts
A
465 – 500
Final Exam
100 pts
A-
450 – 464
Cases
90 pts
B+
435 – 449
Clicker Points
49 pts
B
415 – 434
Group Project
61 pts
B-
400 – 414
Total points
500 pts
C+
385 – 399
C
365 – 384
C-
350 – 364
D+
335 – 349
D
315 – 334
D-
300 – 314
F
< 300
Additional Instructor Policies:
1. I take the VT Honor Code very seriously. Please do not give me a reason to enforce it.
2. If you have attended class regularly, I will spend the time needed to help you understand
the material during office hours. I will not go over material covered in class with students
who did not attend class (except for excused absences related to university-sponsored
events). It is advised for the student to get notes from a classmate.
3. I will schedule a meeting with you at a mutually convenient time if you have another
class during my scheduled office hours.
4. I will respond to your e-mails within a reasonable time frame.
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TENTATIVE CLASS SCHEDULE:
Date
Topic # Topic
Jan. 21
Readings
Introduction
Jan. 23
1
The Demand for Assurance
Chapter 1
Jan. 28
2
CPA Profession and Regulatory
Environment
Chapter 2
NO CLASS – work on Case 1 and
complete the upcoming readings
Jan. 30
Feb. 4
3
Feb. 6
Feb. 11
4
Feb. 13
Feb. 18
Ethics
Supplement:
Case 1 due
Ethics – Chapter 1 IN CLASS
Ethics
Supplement:
Case 2
Ethics – Chapter 2
Professional Ethics
Chapter 4
Professional Ethics
5
Case 3
Corporate Governance
Supplement:
Corp.Gov. –
Chapters 1-5
Feb. 20
Corporate Governance
Supplement:
Corp.Gov. –
Chapters 6-9
Feb. 25
MIDTERM EXAM I
Feb. 27
6
Mar. 4
Mar. 6
Cases
Audit Responsibilities and Objectives
Audit Responsibilities and Objectives
7
Professional Judgment
Mar. 11
SPRING BREAK – NO CLASS
Mar. 13
SPRING BREAK – NO CLASS
5
Case 4
Chapter 6
Case 5
Mar. 18
8
Governmental Auditing:
Guest Speakers from the GAO
Chapter 26:
pg. 807-813
Case 6
Mar. 19 (evening) Ethics Symposium: Marc Whitacre (Squires Haymarket Theatre)
Mar. 20
9
Mar. 25
Mar. 27
Audit Planning
Chapter 8
Audit Planning
10
Case 7
Materiality and the Audit Risk Model
Apr. 1
Materiality and the Audit Risk Model
Apr. 3
MIDTERM EXAM II
Chapter 9
Case 8
Apr. 8
11
Internal Controls – COSO
Chapter 10:
pg. 292-301
Apr. 10
12
Auditing Internal Controls
Chapter 10
(remainder)
Apr. 11
COMMUNICATE GROUP PROJECT CASE SELECTIONS
TO DR. STEIN BEFORE 5PM
Apr. 15
Auditing Internal Controls
Case 9
Apr. 17
13
Forensic Simulation:
Guest Speakers from Deloitte
Apr. 22
14
Overall Audit Strategy
Chapter 13
Apr. 24
Overall Audit Strategy
Skim Chapter 3
Apr. 29,
May 1,
& May 6
Student Presentations – Group Project
FINAL EXAM:
12:30pm class (10142):
May 10 from 1:05–3:05pm
2:00pm class (10141):
May 14 from 1:05–3:05pm
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Case 10