University of North Carolina at Greensboro
ACC 440 – Auditing Concepts
Course Syllabus
Fall 2015
Thursday 6:00-8:50pm, Bryan 111
Instructor: Ambrose Jones III, PhD, CPA
Office: Room 326
Email: ambrose.jones.iii@uncg.edu (Please use this as the first means to contact me)
Mobile phone: 336.509.1223 (emergency only)
Office hours: Monday, Tuesday & Wednesday (5:30 – 6:30pm), by appointment, or whenever
you see me around campus or in my office. I will tell you if I am already committed for the time.
REQUIRED MATERIALS
 Auditing and Assurance Services: An integrated approach, 15th edition, by Arens, Elder
and Beasley (ISBN No. 9780133125634) – hard cover or electronic through
MyAccountingLab. Course ID jonesiii45901.
 Integrated Audit Practice Case, 6th edition, by Kerr, Elder & Arens (ISBN No.
9780912503561)
 i > clicker2 - ISBN: 9781429280471 (for quizzes)
COURSE OBJECTIVES – to help you:
1. Understand basic auditing concepts: risk identification and containment; client
acceptance & continuance, sampling, controls evaluation & testing, substantive testing.
2. Think critically about auditing with a business perspective.
3. Understand the role of auditing in business organizations and in the economy as a whole.
4. Learn about how public accounting firms operate and how quality control procedures are
applied.
5. Apply generally accepted auditing standards – the course will emphasize how to identify
issues and to research solutions.
6. Understand the AICPA Code of Professional Conduct and its application to ethics in the
auditing profession.
7. Gain a basic understanding of other assurance services, including the auditor’s role in
sustainability initiatives (e.g. corporate social responsibility reporting).
8. To help you to develop as a professional – this includes proper classroom conduct and
participation. You might think of this as preparation for the real world of working with
colleagues, clients and customers. Your reputation is always at stake and how you act as
a professional will have dramatic impact on your ability to be successful in your chosen
field.
ADD/DROP DATE – August 21, 2015
LAST DAY TO WITHDRAW – October 9, 2015
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ACADEMIC INTEGRITY
If you are not familiar with the UNCG Academic Integrity Policy, I suggest that you visit the
website at http://sa.uncg.edu/handbook/academic-integrity-policy/. Each of us has our part to
play in upholding academic integrity at UNCG. If you observe something that is not correct and
refuse to take any action such as reporting to the instructor, you are developing a habit that may
be as detrimental to society as the habit you are allowing others to continue. Remember that
your honesty, integrity and reputation are more important than a grade in a course or even
a university diploma.
GRADING
1. The weight assigned to each requirement is as follows:
Exam #1
Exam #2
Exam #3
Final Exam
Classroom participation
HW assignments & quizzes
Integrated audit practice case
Total
Points
75
75
75
100
50
35
90
500
2. Course grades for undergraduate students are determined as follows:
Points
490-500
460-489
450-459
440-449
410-439
400-409
Grade
A+
A
A–
B+
B
B–
Points
390-399
360-389
350-359
340-349
310-339
300-309
<300
Grade
C+
C
C–
D+
D
D–
F
KNOW WHAT’s GOING ON
From time to time, we may discuss news and developments in the accounting and auditing
profession. This will become more relevant as the semester progresses.
As an easy way to stay current, I suggest that you register with CFO.com where you can
subscribe to free newsletter and email alerts for accounting and auditing topics. Subscribe at
http://www.cfo.com/subscribe/. You will receive daily emails, many of which are relevant to the
world of accounting and auditing. The articles are very concise and easily understandable.
Another great source of information is the Wall Street Journal. Although not free, it is a valuable
source of information and it only costs about $30 for a one semester subscription. This will
entitle you to the print edition, as well as the online content. Similar to CFO.com, you can
request alerts on various topics.
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Neither of the above material is required. However, if you are truly interested in a business
career, this will be a helpful and fun way of joining the business community.
BONUS POINT OPPORTUNITY
As an incentive to improve your communication skills and to help your fellow classmates learn,
you will have an opportunity to gather an extra ten (10) bonus points and it is very easy.
Succeeding in the business world is based largely on developing and maintaining personal
relationships and being able to identify and communicate current business or political events that
might have an impact on your company or your client (see above, KNOW WHAT’S GOING
ON).
For the extra 10 course points, you can volunteer for a 5 minute class presentation. The rules are:
(1) email your request to me, including the article and stated relevance to course material, within
(not more than) 10 calendar days before your presentation; (2) “first-come, first-serve,” based on
my receipt of your email; and (3) your topic should be about a business, accounting, auditing,
economic or political event that could have accounting, reporting or auditing implications and
you should state the relevance to course material in the presentation. No more than two article
presentations per class will be scheduled, time permitting. This bonus opportunity is available
through the November 12th class, assuming our schedule permits.
CLASS FORMAT (including expectations for participation)
I will introduce each topic with a lecture in which I will try my best to explain the business
reasons for the particular subject matter, along with defining key terms. If you understand these,
along with having a good basic foundation in accounting theory, you will be able to master the
subject matter (and you will be well-prepared for the CPA exam). This will be a good time to ask
questions for matters you don’t understand.
I expect that you will have read the material in advance and will be prepared to discuss the topic
– see the last page of this syllabus for a tentative schedule. We will then discuss one or more of
the assigned problems for the topic, usually in the next class. The assigned problems are to be
solved before they are reviewed in class and will be collected periodically. Collected
assignments will be evaluated for effort, not correctness. Occasionally, we will have short
quizzes using i-clickers. Quizzes may or may not be announced beforehand and there is no
make-up provision for quizzes. Homework and quiz grades count equally and together represent
10% of the total class grade.
Active participation in the discussions is a factor in grading. Accounting is as much about
technical ability as it is about knowing how to research problems and how to communicate with
clients and other professionals. I will evaluate participation in the classroom discussions of new
material and homework problems when awarding the course points for classroom participation.
This will be based on the frequency and relevance of participation (not just attendance), as well
as classroom conduct (see below). Periodically, I take notes during the semester to assign the
participation grade. Just coming to class regularly (on time) and not hindering others in their
quest to learn will earn you a C for this component of the grade. Additional points will be
awarded as an incentive to actively participate in discussions – this helps everyone to learn.
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ATTENDANCE and CLASSROOM CONDUCT
Each student is responsible for the material covered and assignments given during each class. If
you are not in attendance, it is your responsibility to determine what was covered in class. At the
end of this syllabus is a tentative schedule to help you plan your time. I will attempt to follow
this closely and I will announce changes, if necessary. A seating chart will not be used; however,
I would appreciate if you take a regular seat.
Think of this course as means to develop as a professional. I commit to doing my best to help
you achieve this objective – I believe that my 30+ years in the “real world” of business,
including 23 years as a partner in a national CPA firm helps qualify me to do this. I believe we
can achieve the objective and have fun at the same time. Your lack of attendance will not directly
lower your grade, but you will not be able to participate if you don’t attend. My opinion is that
you are only hurting yourself, assuming your goal is to be successful in this class. Expectations
concerning classroom behavior are as follows:



Side conversations during class, other than as part of the general classroom discussion, are
considered rude and unprofessional. Success in the business world requires many attributes;
one of which is exercising appropriate conduct to fit the situation. The classroom is the
equivalent to professional meetings that occur every day in the real-world of business. In
these situations, individuals are expected to come prepared, participate when appropriate, and
not to exhibit behavior that is disruptive or disrespectful of others. This includes excessive
talking in class that is not a part of our overall discussion, passing notes to others, and
creating other forms of distractions that are disruptive in the classroom. These behaviors are
strongly discouraged and will be considered in awarding your classroom participation grade.
If a student is notified of this more than once, 50 points will be deducted from your course
total, along with the opportunity for any bonus points. If the behavior continues, additional
points will be deducted. Therefore, the best that can be expected for the course is a “B+”
even if such student scores 100% on all exams and other requirements. I feel very strongly
about this – my concern is that side conversation hurts the chances of others to concentrate
and to learn. For UNCG and Bryan School policies, see http://sa.uncg.edu/handbook/studentcode-of-conduct/ and www.uncg.edu/bae/faculty_student_guidelines.pdf .
Cell phones and smartphones are to be turned off and put away before class and are not to be
used for any reason during class or exams. The same rules apply here as above for other
disruptions.
Please be on time for class – chronic lateness is disruptive to the class and will be considered
in awarding your class participation grade.
COMMUNICATION
Outside of class, I will communicate with you via Canvas and/or email. This syllabus (including
revisions during the semester), as well as other documents, will be posted on Canvas. Prior to
each class, I will post PowerPoint files to be used in lectures. Homework solutions will be posted
after we discuss them in class. I encourage you to check your email and Canvas often for these
communications.
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MAKE-UP POLICY
If, for what I determine to be good cause, you must miss an exam, provisions can be made for an
early exam, but I must be notified at least 48 hours in advance of the scheduled exam time and
the make-up (early exam) must be taken prior to the regularly scheduled exam. No make-up
exams will be given subsequent to a regularly scheduled exam. Good cause is generally
restricted to death of a family member, severe illness, or similarly acute personal exigency,
impairing your ability to take an exam. Documentation is required in all cases.
If a mid-semester exam is missed, the points for that (those) exam(s) will be assigned to the final
exam, only with my permission given in advance of the scheduled exam date. Permission for
skipping a second exam will be granted only in rare (documented) circumstances and is
dependent on the student’s otherwise active participation in class and completion of homework
assignments.
Late homework assignments, including practice case modules, and make-ups for quizzes will not
be permitted.
UNFORESEEN CANCELLATION OF CLASS
If a class is canceled because of an unforeseen event then all assignments for that class meeting,
including quizzes, carry over to the next class meeting. In the case of inclement weather, I will
make every effort to be in class if UNCG is not closed. You must assess the risks involved in
your situation and decide what you should do. Also you must accept the consequences of your
decision and be responsible for the material covered if you choose to miss class. The University
of North Carolina at Greensboro will remain open during adverse weather conditions unless an
administrative decision on changing work and class schedules is made by the Chancellor.
Students can receive inclement weather details on the UNCG home page (www.uncg.edu), or by
dialing three campus telephone numbers: Adverse Weather Line (336-334-4400); Campus
Switchboard (336-334-5000); and http://police.uncg.edu/ (336-334-5963).
POLICY ON DISABILITIES
UNCG is committed to a policy of equal opportunity and affirmative action in education and
employment and complies with the requirements of the Rehabilitation Act of 1973 and the
American Disabilities Act of 1990. If you require special accommodations, please contact me at
your earliest convenience. Also, I urge you to check the Office of Accessibility Resources &
Services at http://ods.dept.uncg.edu/ to arrange any special accommodations.
CPA EXAM - HELPFUL WEBSITE
If you plan to sit for the CPA exam after this course, you might be interested in the following
website: http://www.cpareviewforfree.com/.
OTHER
Audio or video recording of classes is not permitted, unless a request is supported by approved
authorization from the Office of Accessibility Resources & Services. If permission is granted,
you must sit in the front row of the classroom. For more complete documentation of UNCG
faculty and student guidelines concerning the expectations of all of our learning community
members, see http://bae.uncg.edu/assets/faculty_student_guidelines.pdf.
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1.
2.
3.
ACC 440 –Auditing – Tentative Schedule – Fall 2015
Assignment for Next
Date
Topic & APC due date
Reading
Class*
Aug 20 Introduction
Demand for Audit & Attest Services
Ch 1
1-16 & 17
27 The CPA Profession
Ch 2
2-19 & 21
Auditor Reports
Ch 3
3-28 & 29
Ch 4 rev; Ch 4-22 & 23 from Ch 4
Sept 3 Professional Ethics, Legal liability
5 (pp. 113rev
16; 123-31)
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
Audit Responsibilities & Objectives
10 Audit Evidence
Review
17 EXAM #1 – chapters 1-7
24 Introduce APC; Audit Planning &
Analytic Procedures
Materiality & Risk
Oct 1 Complete Ch 9; APC #1 & 2 due
APC # 3 due (Oct 5 @ 1pm); Internal
Control & Control Risk
8 Overall Audit Plan & Audit Program
APC #4 due & review
15 EXAM #2 – chapters 8-10 & 13
22 Audit Sampling
Sales & Collection Cycle / Accounts
Receivable
29 APC #5 due; Finish A/R; Acquisition
& Payment Cycle
Acquisition & Payment Cycle
Nov 5 APC #6 &7 due; review
EXAM #3 – chapters 14-16 & 18
12 Audit of Cash Balances
Audit Completion
Ch 6
Ch 7
6-28 & 31
7-32 & 35
Ch 13
APC #1 & 2 (due Oct 1)
8-30 & 34 (in class)
APC #3 (due Oct 5 @
1pm)
9-28 (in-class) & 34
10-33 & 34; APC #4
(due Oct 8)
13-24 & 32
Ch 15
Ch 14/16
APC #5 (due Oct 29)
14-26 & 28; 16-27,
Ch 18
APC #6 non-stat (due
Nov 5); 18-22 & 30 (in
class)
APC #7 (due Nov 5)
Ch 8
Ch 9
Ch 10
Ch 23
Ch 24
APC #8 (due Nov 19)
APC #10 (due Nov 20
@ 1pm)
19 APC #8 due; review & catch up
20 APC #10 due @ 1pm
Dec 8 FINAL EXAM 6:30-9:30pm
* Note: For each chapter, I suggest that you attempt the multiple choice questions from prior CPA exams. I will not
always discuss these, but I will be glad to respond to questions and I will furnish solutions. This will be good
preparation for the CPA exam.
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