NEW YORK UNIVERSITY
LEONARD N. STERN SCHOOL OF BUSINESS
B10.3313.01 &
C10.0041.01 Auditing
Spring 2007
T/R 3:30PM– 4:45PM
Room: KMC 4-60
Professor Seymour Jones
Office: KMC 10-95
Phone: (212) 998-0067
Fax:
(212) 995-4004
Office Hours: T/R 1:30PM – 3:30PM or by appointment
Required Text:
O'Reilly, McDonnell, Jaenicke, Montgomery's Auditing, 12th edition, CPE Version; New York:
John Wiley & Sons, 1999.
Course Objectives:
1) To understand the theory, concepts, professional and legal standards and procedures
underlying audits of financial statements by independent public accountants.
2) To understand how to audit specific cycles and accounts.
3) To supplement the course material with practical applications which illustrate the above.
Course Policies:
There are reading and/or problem assignments for each class. Please bring the textbook to class,
as it will be utilized. The problem assignments should be written out in outline form, as you
should be prepared to discuss them in class or hand in your answers if requested. In addition to
the homework assignments, students will be responsible for reviewing all "Review Questions" in
each chapter assigned in the Compendium of Problems.
The grading in this course will be based on a mid-term and final examination, each of which will
count for approximately 50% of your grade. Active participation in class will reflect favorably
on your term grade.
DATE
ASSIGNMENT SCHEDULE
TOPICS/READINGS
COMPENDIUM
OF PROBLEMS
1/16/07
Introduction to Course, Auditing Overview, Recent Professional
and Legal Developments: Chapter 1
None
1/18/07
Organization and Structure of the Auditing Profession: Chapter 2
None
1/23/07
Auditing Standards and Professional Conduct: Chapter 3
3-65
1/25/07
Professional Responsibility and Legal Liability, Effect of
Sarbanes-Oxley Act: Chapters 4 & 5
4-65
1/30/07 &
2/1/07
The Audit Process: Audit Risk and Materiality: Chapter 6
5-61, 5-62
2/6/07 &
2/8/07
Engagement Strategy: Chapter 7
6-60, 6-61
2/13/07
The Internal Control Structure: Chapters 8, 9 and 10
7-62, 7-64
2/15/07
Assessing Inherent and Control Risk: Chapter 11
8-60, 8-64
2/20/07
Controlling Detection Risk: Substantive Tests: Chapter 14
9-61, 9-63
2/22/07 &
2/27/07
The Extent of Testing: Audit Sampling: Chapter 15
3/1/07
Auditing in an EDP Environment: Guest Speaker
3/6/07
MIDTERM
3/8/07
Auditing Accounts Receivable and the Revenue Cycle: Chapters
12 and 16
3/20/07
Review of Midterm
3/22/07
Auditing the Purchasing Cycle: Chapter 13
13-62, 13-65
3/27/07 &
3/29/07
Auditing the Production Cycle, Cost of Sales and Inventory
Balances: Chapter 17
14-61, 14-64
4/3/07
Auditing Cash Balances, Accounts Payable, Income Taxes, Debt
and Equity, and Disclosures: Chapters 16 and 19
15-61. 13-65
10-60, 10-70
None
12-60
4/5/07
Auditing Investments, Prepayments and Accruals; and Property,
Plant and Equipment: Chapter 18
16-61, 15-69
4/10/07 &
4/12/07
Completing the Audit: Chapter 20
17-60, 17-64
4/17/07 &
4/19/07
The Auditor’s Report: Chapter 21
18-60, 18-63
4/24/07 &
4/26/07
Responsibilities in Other Engagements: Chapters 22 and 23 and
Recap of Course Objectives and Course Review
19-62, 19-64