ACG 4651: Auditing and Assurance Services
Spring 2010
Professor: Dr. Julia L. Higgs, Ph.D., CPA
Office: Barry Kaye Hall, Room 124
E-mail: jhiggs@fau.edu (Include the course number in the subject line of all communication. Please
use this method of communication first. Include your phone number if you want me to call you. Note
that some legitimate email goes into my junk mail folder because of the filter FAU uses. If I do not
respond to you within 2 -3 business days, assume that I have not received the email and try to send it
again.). You must indicate the class name in the subject line. I am teaching many courses and do not
have the time to search class rosters. I generally do not check email on weekends or during the evening
hours.
Office Hours: 11-12 Monday and Wednesday and by appointment
Required Text: Auditing and Assurance Services by William Messier, Steven Glover, and Douglas F.
Prawitt 6th Edition, McGraw Hill Irwin (ISBN 978-0-07-352690-4)
HighlyRecommended Text:
Wiley CPA Exam Review 2009 Auditing and Attestation;
Wiley CPA Exam Review 2009 the Regulation
Supplemental Material:
AICPA web page (Statements of Audit Standards, Quality Control Standards, Code of Professional
Conduct)
PCAOB web Page (Auditing Standards, inspection reports)
Securities and Exchange Commission EDGAR database found at www.sec.gov; Accounting and Auditing
Enforcement Releases
Statement about the Course and Objectives:
Some students have difficulty in an auditing class because the nature of the course is different from most
other accounting courses. In this class, the material is qualitative rather than quantitative. Further, it is
not possible in a classroom setting to teach one to be an auditor, just as it would be impossible to teach
surgery in a classroom. The following list contains the objectives of the course.
At the end of the course the student should:
1. Understand the role of the audit in society
2. Understand the nature of the accounting profession (auditors) and the firms
3.
4.
5.
6.
7.
8.
9.
10.
Understand the regulatory environment of auditing
Understand the reporting responsibilities of auditors
Understand the issues related to auditor independence
Understand the legal issues in auditing
Understand the basic audit process
Understand the concept of risk as it relates to the auditing process
Understand the role of internal controls in auditing
Have an exposure to transaction cycles
Class policies:
Prerequisites: The prerequisites for the course are ACG 3141 and ACG 4001. If you do not have these
courses, you may be administratively dropped at any time during the semester. If you are
administratively dropped, you will be fee liable. It is the student’s responsibility to ensure that he/she has
the prerequisite.
Use of Blackboard:
Students are responsible for ensuring that their blackboard account is current. The professor will not
resend emails because your blackboard account was not up to date. I recommend that you find a buddy in
the class who you can contact about announcements or notes. Emails and announcements may be sent
through blackboard. Per the university policies, grades cannot be discussed via email because faculty
email is subject to the Freedom of Information Act. Thus, it is impossible to guarantee student privacy.
As such, grades will be posted to Blackboard. Final grades are posted to the University system, not
necessarily to blackboard.
Projects and Homework:
Any graded projects must be submitted to the digital dropbox in Blackboard as a backup to other ways
projects are turned in. DO NOT email anything to the instructor as these will be considered not
submitted. With close to 100 students, it is impossible for the instructor to manage the hundreds of
assignments and students in email. Homework is not collected. I recommend that you do the exercises
and check your work against the solutions provided.
Other Class Policies:
1.
Students are expected to come to class having (a) READ the text material assigned for
that day and (b) ATTEMPTED ALL assignments.
2.
Unless instructed otherwise, ALL work to be submitted for consideration toward a
student's course grade is to be attempted and completed on an INDIVIDUAL BASIS.
3.
Cell Phones. Cell phones should be turned off during class.
4.
Honor Code. The Florida Atlantic University Honor Code governs all student activities
throughout this course. A fundamental principle of academic, business, and community
life is honesty. Violation of this ethical concept shall result in penalties ranging from a
grade of ‘F’ in the course to dismissal from the University. In all penalties, a letter of
fact shall be included in the student’s file. The honor code is available in the catalog.
5.
Professional Conduct. To foster a more professional learning environment and to
develop habits that lead to success in the business work, all participants must engage in
professional behavior, including: taking responsibility for individual actions and
attending each class session, including arriving promptly and leaving at the designated
time. Attendance sign-in sheets may therefore be used and excess absences may impact
the participation grade. Students are expected to be attentive and an active participant in
group activities and class discussions. Other responsibilities include respecting diversity
in the classroom and treating everyone involved in the class in a civil manner, planning
outside activities to avoid conflicts with the activities outlined in the syllabus, meeting
all deadlines in the course for assignments, projects, etc. and acknowledging the
importance of clarity of expression in written and oral communication and understanding
that the course grade will be affected by your ability to communicate.
6.
ADA. Students may seek accommodations in accordance with the Americans with
Disabilities Act of 1990. Students with disabilities needing academic accommodations
should review the University’s ADA Policy and work the Office for Students with
Disabilities (OSD). Students who require special accommodation due to a disability to
properly execute coursework must register with the OSD and follow all OSD
procedures.
7.
Plagiarism software Written components of any assignment or project may be submitted
to software to evaluate the originality of the work. Any students found to be submitting
work that is not their own will be deemed in violation of the University’s honor code
discussed above.
8.
Missing Exams. Make-up exams will not be given for any reason. If you have a valid
reason for missing an exam, (medical emergency, family emergency, universityscheduled events, religious observation, or class conflicts), you must take the
comprehensive final.
9.
Withdrawals. Students are responsible for withdrawing from the class. Deadlines for
withdrawal can be found on the academic calendar on the university web page.
10.
Incompletes. There are no incompletes for this course except in the case of
extraordinary circumstances (for example, excessive absences due to severe illness).
The instructor determines when an incomplete is appropriate. In no case can an
incomplete be given unless the student is passing the course with a C or better at the
time the incomplete is requested.
11.
Points Awarded. It is the responsibility of the student to monitor the points awarded todate in blackboard. During the semester, the student has up to two weeks following the
posting of any points to contest the number of points, after which the points are
considered final.
12.
Electronic Communication. Blackboard and FAU email will be used in this course for
content delivery, homework, and other communications. Accordingly, it is the
student’s responsibility to check the Blackboard site and his/her FAU email account
for announcements, etc. Students are responsible for ensuring that the correct email
address is used for blackboard. Make sure you account does not get full.
13.
Religious Holidays. It is the responsibility of the student to promptly notify the
professor of any conflicts due to religious observance so that accommodations can be
arranged.
14.
Hurricanes. In the event of a hurricane or tropical storm (or other disasters), the class
will meet in accordance with the university policy. Classes cannot be individually
cancelled by the instructor, although assignments and exams may be modified or
postponed. Students should monitor university and blackboard announcements.
Grade Determination:
The grades will be based on the following:
Participation and professionalism
Quizzes on Auditing Standards (students have 1 week from the posted date to
complete quizzes)
3 Exams (students have 1 week from the posted date to complete exams
except for the final)
Student Group Presentation on an Auditing Standard
Vouch and Trace Group Project
The following weights will be used.
A
92-100
CA90-91.99
D+
B+
88-89.99
D
B
82-87.99
DB80-81.99
F
C+
78-79.99
C
70.000001-77.99
60 points
60 points
360 points
60 points
60 points
600 points
70-70.0000001
69.999999-70.0
62-69.999999
60.00-61.99
Below 60
Course Schedule and Topics:
Note: The following schedule is subject to change. Students should refer to blackboard for syllabus
updates.
Date
Topic
January 11
Syllabus and
Class Overview
January 13
An Overview of
the Auditing
Process
The Financial
Statement
Auditing
January 20
Readings and Recommended Homework
(Multiple Choice and Review questions are recommended for every
chapter).
Chapter 1
Chapter 2
January 27
Environment
The Financial
Statement
Auditing
Environment
Audit Reports
February 1
Audit Reports
February 3
Professional
Chapter 19
Conduct,
Independence
and Quality
Control
Frontline Video: Bigger than Enron
Professional
Chapter 19
Conduct,
Quiz 5: System of Quality Control for a CPA Firm (QC 20)
Independence
and Quality
Control
Presentation
Assignment
January 25
February 8
February 10
February 15
February 17
February 22
Chapter 2
Quiz 1 Generally Accepted Auditing Standards (AU 150)
Chapter 18
Quiz 2: Due Professional Care / Reasonable Assurance (AU 230)
Quiz 3: Independence and competence (AU 210 & AU 220)
Chapter 18; Chapter 7, pp. 255-263.
Quiz 4: Audit reports (AU 508 ¶.01-¶19)
Legal Liability
Legal Liability
Online Exam 1
No formal class.
Students are to
take an exam on
Blackboard
which can be
taken during the
scheduled class
period if the
student elects to
do so. Last date
to take the exam
is October 5 at
midnight.
Risk
Assessment and
Materiality
Chapter 20
Chapter 20
March 1
Risk
Assessment and
Materiality
Quiz 6: Audit Risk and Materiality (AU 312 paragraphs 4 – 30)
March 3
Audit Evidence
and Audit
Chapter 4
Quiz 7: Audit Evidence (AU 326)
February 24
Chapter 3
March 15
March 17
Documentation
Discussion of
Analytical
Procedures
Assignment
Audit Planning
and Types of
Audit Tests
Audit Planning
and Types of
Audit Tests;
Internal control
in a Financial
statement audit
Chapter 5
Quiz 8: Planning (AU311 paragraphs 5-27)
Chapter 5
March 22
March 24
March 29
March 31
Vouch and Trace Assignment
Group Presentations
Group Presentations
Internal Control Chapter 6
in a Financial
Statement Audit
April 5
Internal Control
over Financial
Reporting
Online Exam 2
No formal
class. Students
are to take an
exam on
Blackboard
which can be
taken during
the scheduled
class period if
the student
elects to do so.
Audit Sampling:
An Overview
and Application
of Tests of
Controls
Audit Sampling
Audit Sampling:
An Application
to Substantive
Tests of
Account
Balances
Auditing the
Revenue Cycle
April 7
April 12
April 14
April 19
April 21
Chapter 7
Chapter 8
Chapter 8 and 9
Chapter 9
Quiz 9: Audit Sampling (AU 350 paragraphs 1 – 14)
Chapter 10
Quiz 10: The Confirmation Process (AU 330)
April 26
April 28
May 3
Completing the
Engagement
Online Exam 3
No formal
class.
Optional
Online
Comprehensive
Final: (last
date to take the
optional final
exam. Access
to exam expires
at five pm.)
Chapter 17
This optional final replaces any missed exam and can replace a low grade if
the student elects to take it.