COURSE: INSTRUCTOR: OFFICE PHONE: OFFICE: OFFICE HOURS: ACG 4651 - AUDITING – FALL, 2020 – T/R 3:05-4:20 Dr. J. E. Mc Eldowney 81593 620-1104 Bldg. 42, Room 3214 (e-mail: email@example.com) 9:55-10:50 a.m.; 1:30-3:05 p.m. Tuesdays & Thursdays REQUIRED MATERIALS: 1. Auditing & Assurance Services, 7th Edition 2. Study Guide to Accompany Auditing & Assurance Services 3. Wiley CPA Examination Review, 2020 Edition (optional) 4. Auditing Standards of the Public Company Accounting Oversight Board (PCAOB) at http://pcaobus.org/Standards/Auditing/Pages/default.aspx 5. AICPA Clarity of Auditing Standards Project at AICPA TV -http://www.aicpa.org/research/standards/auditattest/pages/clarifiedsas.aspx PREREQUISITES: You must have completed Accounting Information Systems (ACG 4404) and Intermediate Accounting II (ACG 3113) before enrolling in this class. Students not meeting these prerequisites will be deleted from the final roll and will not receive credit for the Auditing course. COURSE OVERVIEW: Auditing is a diverse discipline encompassing many facets such as: external financial reporting, internal efficiency, governmental compliance, etc. For the purpose of this course, our primary objective will be to investigate and understand auditing from an external financial statement reporting perspective. Coverage will include background material which encompasses audit theory and essential terminology. The course will also address the professional standards under which any external auditor works. Additionally, the class will attempt to acquaint students with a systematic approach to problem-solving and provide them with the analytical skills necessary to perform in the capacity of an auditor. An auxiliary objective will be to help students internalize the basic "body of knowledge" in the auditing area to enable them to pass the CPA exam. Satisfactory completion of this course is required for that examination. The value of this class is readily apparent for those students aspiring to the position of an external auditor. It is equally applicable for students seeking employment in local, regional or international assurance services firms. As stated previously, internalizing the basic body of knowledge incorporated in both U.S. and international auditing standards is essential for not only successful completion of the CPA exam, but also for proficient performance in the external auditing workplace. While the course is oriented to those students wishing to begin their accounting careers with external auditing exposure, the class is also applicable to other accounting and even non-accounting disciplines as well. This course will be beneficial for students wishing to enter the field of internal or compliance auditing. Both internal and governmental auditors essentially use the same critical thinking processes in their work as do external auditors. There is also a substantial overlap in the coverage of auditing-related material tested on the three major national exams in accounting: the CPA, CMA and IIA examinations. The course is also valuable for non-accounting majors, as it will aid in their understanding of the external auditor’s role in the maintenance of both national and international financial markets. Financial analysts, banking professionals and key management personnel will find the course helpful as it will expand their understanding of the impact an external audit can have on financial statement preparation and its dissemination to third-parties. In summary, this course will help students learn how external audit engagements can enhance the credibility of financial statements, reduce perceived risk and concomitant ROI, and add significant value to the capital markets. Each class will begin with a lecture and discussion and then proceed to the assigned problems. The intention is that this be primarily a problems course. To get the most out of your studies, it is essential that you at least attempt all assigned problems prior to each class. A systematic summarization technique (such as note cards, etc.) will prove most beneficial in preparing for your examinations. This class is "rigorous"...plan your time accordingly. COURSE LEARNING OBJECTIVES: The Coggin College of Business and the Department of Accounting and Finance have identified a number of broad-based learning objectives for the BBA in the Accounting degree program. Many of these learning objectives will be incorporated into this course. More specifically, in this course students will be required to both assimilate and demonstrate competency in the following areas: The role played by the external auditor in the governmental regulation of both national and international capital markets. The underlying theory and practical application of professional auditing standards when providing assurance services. The professional standards and pertinent governmental regulations such as the Sarbanes-Oxley Act of 2002, PCAOB pronouncements, ASB pronouncements, the AICPA Clarity Standards Project, and International Standards (IS). The ethical standards that guide the professional auditor’s conduct as well as the possible legal liability which may ensue from failure to maintain these standards. The overall audit process and reporting requirements for both public and non-public entities. The audit of internal control, its impact on the integrated audit process and the resultant reporting requirements that are mandated by both professional and governmental statutes. The requisite auditing techniques applied in an audit and the ability to critically analyze which procedures are most relevant under different circumstances, and more importantly, to understand why those procedures are necessary. The salient differences and application methods for standards that regulate public verse private firms in the U.S. as well as requirements outlined by international standard-setting bodies. COURSE GRADE: 1. There will be three major examinations given during the semester. The grade breakdown is as follows: EXAM I EXAM II EXAM III AUDIT WORKING PAPERS 2. 25% 25% 25% 25% 100% Final grades will NOT be curved. There are no make up exams. Failure to take an exam will result in a zero for that test. There are no exceptions to this policy. No grades will be given over the phone or sent via the internet. There will be no plus (+) or minus (-) final grades administered. The exam dates are indicated on the class schedule. All exams and final grades will be based on the following scale: A = 90-100 C = 70-79 F = 0-59 B = 80-89 D = 60-69 3. Additional material will be incorporated into the course throughout the semester. This materials will include, but are not limited to, coverage of AICPA Professional Standards for Auditing (SAS), PCAOB standards (AS), International Standards of Auditing (ISA), the AICPA Code of Professional Conduct and the AICPA Clarity Standards Project. Class lectures will draw heavily from these sources, and will be incorporated into each of the three exams for the course. Failure to attend class could adversely affect your grade. 4. All Review Checkpoints, and Multiple Choice Questions at the end of each chapter are assigned but are not required for in-class participation. It is probable that a number of these questions will show up on examinations throughout the course. The assigned Exercises and Problems will be covered in class, but do not have to be turned in. However, if the class as a whole is repetitively unprepared, written assignments will become mandatory. (Failure to turn in these problems will then result in the lowering of the student's overall grade in the course by 2 percentage points per test for each problem not turned in.) 5. The drop date for this term is indicated on the “Assignments” section of your syllabus. Dropping the class after this date involves an extensive petition process. Your instructor neither approves nor disapproves this petition; he merely assigns a grade of "WP" or "WF". ATTENDANCE: Experience has shown that there is a direct correlation between a student's class attendance and his/her overall level of performance. Your class attendance and the quality of your class participation will be assessed on a daily basis to aid in assigning "borderline" grades at the end of the semester. Additionally, because lectures will include material not readily obtainable from other sources, failure to attend class places the student at a distinct disadvantage with regards to his or her peers. The normal class meeting times will be allocated to covering the chapter material, reviewing solutions to selected homework problems, and various other learning activities. PLEASE NOTE: All students must attend the first class of all registered courses in the Coggin College of Business. If you are going to be unable to attend the first or second class of the semester, send me an e-mail BEFORE the first day of class explaining to me why you cannot attend. Failure to do so may lead to you being administratively dropped from the course. Students on wait lists should attend the first class to notify the instructor that they are on the wait list. In the event that positions are forfeited due to non-attendance of the first class, wait listed students may receive a seat. RESEARCH PROJECT: The student Research Project this term is equivalent to one test grade. As such, it should be completed with a high standard of rigor and be of professional quality. Students are expected to develop a set of audit working papers related to an area normally assigned to a first year auditor in a CPA firm. Students are expected to contact a local CPA firm to help them with their area of interest and decide upon an audit area of their choice by the third week of classes this semester. Additional research from professional journals, practice-oriented textbooks, and other sources is expected to be used in this project. While a research paper, per se is not required, a bibliography of sources will be required to help gauge the student’s effort on the project. Additional guidance on this project will be addressed the second week of classes. ASSURANCE OF LEARNING: Grades and/or test results may be used for program accountability (e.g., AACSB Accreditation) and research. Individual students’ work and grades will not be used or published for research. Only aggregate data will be utilized for purposes of research; there will be no intervention or interaction with individuals, and the information will not be individually identifiable. CONTINUITY OF INSTRUCTION: In the event of disruption of normal classroom activities due to an emergency such as hurricane, pandemic or other unforeseen event or combination of events, the format of this course may be modified to enable completion of the course requirements. In that event, you will be provided an addendum to this syllabus that will supersede this version. It is your responsibility as a student participant to be proactive during any emergency to find instructions that I will send through your UNF email account which should be checked daily. WRITTEN AND ORAL COMMUNICATION: This course requires written solutions to several textbook exercises and cases. Oral communication skills will be demonstrated through class participation, discussion of home assignments, various group activities and presentation of the assigned research project during the semester. Students are encouraged to secure Email addresses through the Department of Computer Science at the University. This will greatly assist the communication process among students and the instructor. Take steps to ensure that, if you have a personal e-mail address, all of your UNF mail gets forwarded to your personal address. Numerous times during the semester, the instructor will send projects, journal articles, cases, etc. for your review. Failure to have these items forwarded to your home e-mail address could seriously impact your grade. ETHICS COVERAGE: Ethics will be covered throughout this course as it relates to the collection and reporting of accounting information, as well as the ethical conduct of accounting professionals. Additionally, specific businessrelated vignettes which deal with ethical issues will be presented for class discussion. ACADEMIC INTEGRITY: In today's business environment ethics has become an extremely important topic. An auditor’s only product is her/his services which are measured in terms of integrity and professionalism. These characteristics are not bestowed upon you at graduation, but rather are developed over time. While ethical standards can only be incorporated into your lifestyle through your own efforts, acceptable levels of conduct as well as concomitant ramifications will be imposed upon you throughout your lifetime. The Coggin College of Business has published an undergraduate handbook which includes a Code of Conduct. All items listed will be strictly enforced. Any student violating any aspect of the code of conduct, including instructor interpretations below or variations thereof, will receive academic punishment which may include an unforgivable "F" for the course and referral to the proper authorities for expulsion from the University. Ignorance is no excuse. If you do not understand, ask. Cheating in any venue will not be tolerated in this class. These violations of the Code include, but are not limited to the following: Any and all course projects, computer assignments, quizzes, take home portions of tests, bonus opportunities, etc. must be done independently unless your instructor specifically considers any of these "group" assignments. Both providing and receiving assistance is considered cheating. Each student is responsible for the security of his or her own work, ensuring that no other student has access to any work whether hardcopy or electronic. The submission of any portion of the same academic work for credit more than once without authorization is considered cheating. This includes submitting computer-generated assignments, take-home exams or any other course assignment using any portion of another student's files or submitting assignments that are copies of another student's work whether electronic or hard copy. Note that both using files created by another student or allowing another student to 'look at' your work is considered cheating. Use of a cell phone during class is a disruptive act. Any disruptive act is a violation of the Code of Conduct for the Coggin College of Business. Simple rule – TURN IT OFF. CLASSROOM PROTOCOL: Upon graduation and entering the job market, you will quickly find that success in business requires much more than adequate technical training. Some of the professional characteristics that you should begin to develop now include: Dependability: (e.g., attend class regularly) Punctuality: (e.g., class starts on time, BE THERE) Courtesy: (e.g., pay attention, don’t pack up early, DO NOT TALK when others are talking.) Motivation: (e.g., be adequately prepared for class) Common Sense: (turn off all phones/beepers before entering the classroom.) Any disruptive behavior in the classroom will be immediately addressed. Ensure that you review your Student Handbook for repercussions such as permanent dismissal from the class, assignment of a failing grade, and expulsion from the university. Students will be given one verbal warning. If a second warning is necessary, students will be asked to leave the class and a written reprimand will be issued. Upon the issuance of a second written reprimand, per the Student Handbook, at the professor’s discretion, you may be dropped from the class for the semester. Plan your actions accordingly. For each class, all cell phones must be turned off. Tweeting, text messaging, or any other electronic communications will not be tolerated during any class. Please note: I personally find talking to someone else, writing notes to another member of the class or text messaging while I am lecturing is not only disruptive classroom behavior, but is also quite sophomoric and rude. Refrain from doing any of these things in my classroom. ADA STATEMENT: Students with disabilities who seek reasonable accommodations in the classroom or other aspects of performing their coursework must first register with the UNF Disability Resource Center (DRC) located in Building 57, Room 1500. DRC staff members work with students to obtain required documentation of disability and to identify appropriate accommodations as required by applicable disability laws including the Americans with Disabilities Act (ADA). After receiving all necessary documentation, the DRC staff determines whether a student qualifies for services with the DRC and if so, the accommodations the student requires will be provided. DRC staff then prepares a letter for the student to provide faculty advising them of approved accommodations. For further information, contact the DRC by phone (904) 620-2769, email (firstname.lastname@example.org), or visit the DRC website (http://www.unf.edu/drc/). Military and veteran students who return from combat exposure may be utilizing the post 9/11 GI bill to continue postsecondary education goals and may need both physical and academic accommodations. Contact the Military and Veterans’ Resource Center by phone (904) 620-5131 or email email@example.com. INTERNATIONAL ISSUES: Technology, e-commerce and the Internet have altered the way business is done internationally. Because of these factors, business activities in the global environment require managers to shift their operational perspective. These issues are discussed throughout the course utilizing the Wall Street Journal. The Internet will also be used to research current issues on the subject of international business. As time permits, common business practices and cultural perspectives from a number of countries around the world will be discussed. WITHDRAWALS: The University policy for withdrawing from a course is outlined in the 2020 UNF Undergraduate Catalog. The withdrawal deadline for classes this term is listed on your syllabus. Since an instructor's signature is NOT required to withdraw prior to this deadline, you may withdraw through your MyWings account. To withdraw after this date, you will need to visit the registrar's office for a petition form for late withdrawal. The instructor will assign a WP or WF grade. If your overall grade in the class at the date you drop the course is a minimum of 60%, a “Withdrawal Passing” grade will be assigned. If your overall grade is less than a 60%, a “Withdrawal Failing” will be awarded. STUDENT HEALTH AND WELLBEING: The UNF counseling center can help students who are having difficulties managing stress, adjusting to college, or who are feeling sad and hopeless. You can reach the UNF counseling center at http://www.unf.edu/counseling-center/ or by calling (904)-620-2602 during and after business hours for routine appointments or if you or someone you know is in crisis. Walk-in hours are 10-2 PM Monday-Friday. Crisis appointments available. The Victim Advocacy Program provides confidential crisis intervention services to anyone in the UNF community impacted by crime or victimization. Services offered range from emotional support to assistance navigating the criminal justice system. The Victim Advocacy Program is located in Founders Hall, Building 2, Suite 2100. Students may contact the 24-hour Crisis Helpline at (904) 620-1010. For more information visit http://www.unf.edu/womens-center/Victim_Advocacy.aspx WALL STREET JOURNAL REQUIREMENT: The University of North Florida is proud to have joined the prestigious group of universities that have become Wall Street Journal (WSJ) partners. Students, faculty and staff now have access to read this top publication at no cost. Students can access the WSJ through the UNF MyWings portal. For more information on accessing the WSJ, as well as more information about UNF and the Coggin College’s partnership with the WSJ, please visit http://www.unf.edu/coggin/advising/Wall_Street_Journal.aspx. Note: All appendices in the text are also assigned reading for purposes of exam material. Note: The schedule presented below is a guide and changes to it may become necessary during the semester. DATE AUDIT -- ASSIGNMENTS – FALL, 2020 Aug. 18 20 25 27 T R T R Introduction, Solutions Approach, and Test Strategies. Chapter #1: Chapter #1: 57, 61, 63 Chapter #2: 54, 55 Sep. 1 3 8 10 15 17 22 24 29 T R T R T R T R T Chapter #2: 59, 63 Chapter #3: 54, 55 Chapter #3: 57, 58 Chapter #4: 51, 57 Chapter #4: 60 Review EXAMINATION #1 (Chapters 1,2,3,4, Lectures and Professional Standards) Chapter #5: 61, 64 Chapter #5: 65, 66 Oct. 1 6 8 13 15 20 22 27 29 R T R T R T R T R Chapter #7: 67 Chapter #7: 68, 70 Chapter #8: 48, 49 Chapter #8: 50, 55 Review EXAMINATION #2 (Chapters 5,7,8, Lectures and Professional Standards) Chapter #10: 48, 51 Research Project Compilation – AUDIT WORKING PAPERS Research Project Compilation – AUDIT WORKING PAPERS Nov. 3 5 6 10 12 17 19 24 26 T R F T R T R T R Chapter #10: 52, 56 Chapter #11: 52, 54 LAST DAY TO WITHDRAW FROM FALL TERM, 2020 -- No Refund Chapter #11: 57, 64 Chapter #12: 45, 47 Chapter #12: 50, 51 Review THANKSGIVING – NO CLASS THANKSGIVING – NO CLASS Dec. 1 T CODE OF PROFESSIONAL CONDUCT 3 R FINAL EXAM : CPA EXAM -- TASK-BASED SIMULATION PROBLEMS OVERVIEW December 8, 2020 – 3 :00 p.m.