SYLLABUS
Auditing
Accounting & MIS 4500
Spring 2016
Office Hours: 9:00 – 10:00 am M
1:00 - 2:00 pm W
Instructor:
Office:
Phone:
E-mail:
David D. Williams
418 Fisher Hall
292-8566
WILLIAMS.77@OSU.EDU
Materials:
The recommended textbook is “Auditing & Assurance Services-A Systematic Approach”
(by Messier, Glover & Prawitt, Ninth Edition, 2014) {ISBN: 978-0-07-786233-6}
A prior edition of the text or any good auditing textbook may be sufficient given the
discipline and concepts haven’t changed dramatically.
Handouts, cases, and articles will be distributed to the class via Carmen.
Prerequisites: It is assumed that all students have successfully completed intermediate accounting
(AMIS 3200 and 3201). Since a good auditor must first be a good accountant, it is
assumed that every student is knowledgeable of generally accepted accounting principles
(GAAP) and the basic foundations of accounting (e.g., transaction analysis, asset
realization, income determination, and earnings management).
Objectives:
The course is designed for the student to understand both the theory and practice of
auditing. By developing both an understanding of the underlying concepts and principles
of auditing and the ability to apply and adapt these concepts and principles in a variety of
contexts and circumstances is essential to an auditor for life-long learning. This course is
not intended to serve as a preparation course for the auditing section of the CPA exam or a
staff accountant training class.
Evaluation:
Final grades will be based upon how well a student performs in relationship to his/her
present and past peer groups. No standard percentages will be applied in determining
grades, grades will be earned. Points will be assigned based upon the following
components:
Quizzes (2/4 and 3/31)
Midterm Examination (2/28)
Class Participation
Final Exam-Compressive (4/28 or 5/2)
Total
1
80
100
20
120
320
points
points
points
points
points
Quizzes:
Quizzes will be given on an announced basis at the beginning of each class period and
last about 48 minutes. They will be objective and subjective in nature. Your grade
will be based upon your presentation as well as content.
Examination: The midterm and final examination will also be objective and subjective in nature. The
primary purpose of the examination will be an educational tool, while the secondary
purpose will be to differentiate the class. The final will be comprehensive covering
material from the whole class.
Communications: An integral part of any successful auditing and business career is the ability to
communicate ideas effectively, both in writing and verbally. Since the classroom is one of
the easiest forums in which to cultivate this talent, constructive classroom participation is
encouraged by all members of the class. Class participation credit will be given for the
quality, not quantity, of one’s contributions.
Regulations: The following regulations will be enforced:
1. If you are unable to make a quiz or an examination for health reasons only, contact the instructor
before the regularly scheduled examination. Unless there is an emergency (i.e., hospitalization),
you will receive a grade of zero if you do not at least leave a message prior to the examination
time.
2. Grade cutoffs will not be provided to the student, only means and standard deviations will be
reported.
3. No extra credit is available at any time, for any reason.
4. All cell phones and pagers must be silent during class and especially during examinations.
5. Any student who feels he/she may need an accommodation based on the impact of a disability
should contact me privately to discuss your specific needs. In addition, please notify the Office for
Disability Services (292-3307) in room 150 Pomerene Hall to coordinate accommodations.
Suggestions: The following suggestions will aid the student in achieving their objectives:
1.
Attendance is not mandatory, although lack of participation may have a significant impact on your
comprehension and grade.
2.
Keep up with the assignments. Operating in “crisis mode” and playing “catch-up” is a very
difficult strategy.
3.
Homework will not be collected, or graded. However, students that neglect to read the chapters
or prepare the cases on a timely basis often find it difficult to succeed in the class.
2
4.
Classes will be both lecture and discussion; participation by all members of the class is
encouraged and will be beneficial, especially to those students who fall into borderline situations
with respect to grading.
5.
Be proactive. If a student feels uncomfortable about a topic, attempt to seek alternative learning
sources such as peers, other textbooks, the popular press, and then the instructor to clear up the
confusion.
6.
Memorizing details and "cramming" for exams will produce limited success. Attempt to
understand the concepts so you may apply the principles to a wide range of circumstances.
Relevant Online Resources:

Accountancy Board of Ohio (http://www.acc.ohio.gov/)

PCAOB website (http://pcaobus.org/Pages/default.aspx)

SEC website (http://www.sec.gov/)

AICPA Auditing Standards (http://www.aicpa.org/Research/Standards/AuditAttest/Pages/SAS.aspx)

Website on trendy accounting/auditing issues (http://goingconcern.com/)
3
Tentative Class Schedule (Subject To Revision)
Date
Day
Week #1
1/12 T
Topic
Most Relevant Text Pages/Issues
Accounting Model
(Handout)
Introduction to Financial Statement Audits
Article #1: “Outside Auditors Get Asked In”
(WSJ, 5/12/15)
(p. 14-25)
Week #2
1/19 T
Auditing Standards
(p. 52-57)
1/21
Audit Report-Unqualified “Clean Opinions”
(p. 22-24 & 619-628)
Audit Reports-Going Concern
(p. 616-619)
1/14
Th
Th
Week #3
1/26 T
1/28
Th
Week #4
2/2
T
Going Concern Ramifications
(Type I and Type II Errors)
Article#2: “Going Concern’ Letters on Decline, But That May Not Be Good”
(WSJ 1/2/15)
Ethics
(p. 643-654)
Professional Responsibility
**QUIZ #1**
(p. 654-675)
Week #5
2/9
T
Client Acceptance & Audit Planning
(p. 70-89)
2/11
Audit Evidence & Analytical Procedures
(p. 132-169)
2/4
W
Th
4
Week #6
2/9
T
Audit Risk Model & Risk Assessment
(p. 100-119)
2/11
Analytical Reviews
(Financial Statement Analysis)
Week #7
2/16 T
Internal Control-Concepts
(p. 184-194)
2/18
**MIDTERM EXAM**
Th
Th
Week #8
2/23 T
2/25
Th
Internal Control-Risk Assessment
(p. 194-211)
Article #3: “Big Firms Getting Better Grades on Internal Control Audits: PCAOB”
(WSJ 6/4/15)
Overview Audit Sampling
(p. 269-277 & 327-330)
Week #9
3/1
T
Test of Controls
(p. 277-297)
3/3
Accounting Balance Sampling
(p. 310-326)
Week #10
3/8
T
Classical Variables Sampling
(p. 331-337)
3/10
Detail Test of Balances
(Cases)
Th
Th
Week #11
3/15 T
**NO CLASS-SPRING BREAK**
3/17
**NO CLASS-SPRING BREAK**
Th
5
Week #12
3/22 T
Auditing the Revenue Process
(p. 351-388)
3/24
Auditing the Purchasing Process
(p. 400-417)
Auditing Human Resources-Payroll
(p. 438-453)
Fraud Detection #1
**QUIZ #2**
(cases)
Week #14
4/5
T
Auditing Cash Accounts-Risk Assessment
(p. 544-562)
4/7
Auditing the Investment Process
(p. 562-566)
Auditing Debt & Equity Accounts
(p. 522-531)
Th
Week #13
3/29 T
3/31
Th
Th
Week #15
4/12 T
4/14
Th
Week #16
4/19 T
4/21
Th
Internal Audit
(p. 742-750)
Article #4: “Internal Auditors Face Pressure Over Results-Survey Says” (WSJ, 3/11/15)
Audit Committee & Risk Detection
(p. 75-76 & 119)
Article #5: “SEC-PCAOB Move to Enhance Audit Commit. & Disclosures”(WSJ 8/7/15)
Fraud Detection
(Class Action Lawsuits)
Article #6: “PwC to Pay $65 Million to Settle Lawsuit Over MF Global” (WSJ 4/18/15)
Week #17
4/28 Th
Final Examination-Comprehensive (2:00pm – 3:45pm) for the 12:45-2:05 TTh class
5/2
Final Examination-Comprehensive (8:00am – 9:45am) for the 9:35-10:55 TTh class
M
6