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: jmceldow@unf.edu)
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:
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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:
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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.
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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.
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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 (drc@unf.edu), 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 mvrc@unf.edu.
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
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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
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T
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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
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T
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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
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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
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CODE OF PROFESSIONAL CONDUCT
3
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FINAL EXAM :
CPA EXAM -- TASK-BASED SIMULATION PROBLEMS OVERVIEW
December 8, 2020 – 3 :00 p.m.