UNIVERSITY OF SOUTHERN CALIFORNIA
ACCT 373
INTRODUCTION TO ASSURANCE SERVICES
SPRING 2012
PROFESSOR ROSE LAYTON
GENERAL INFORMATION
Faculty:
Professor Rose Layton
Office Location:
ACC 112
Office Phone:
213/740-5022
E-mail Address:
rlayton@marshall.usc.edu
Office Hours:
T/Th 2:00-4:00 pm; or by appointment.
USC Emergencies:
213/740-4321
USC Emergency Information
Line:
213/740-9233
USC Information:
213/740-2311 and 91.5 KUSC FM Radio
Course Section:
431-14055D, 14056D, 18057D, Lab 431-14058D
Course Prerequisites:
ACCT 370, 371a
Co-Requisites:
None
AICPA. Codification of Statements on Auditing Standards;
PCAOB standards, and other documents (Available on line
through the AICPA, PCAOB and other website and
Blackboard).
Read a business periodical.
COURSE OBJECTIVES AND DESCRIPTION
Assurance issues will be discussed from the perspectives of management and other users
of the financial statements and other reports, as well as, the external auditor and
assurance profession. The objectives of this course are for you:
1. To comprehend our role as professionals through understanding the value our
assurance, attest, and audit services have on our economy and the importance
integrity and ethical behavior have on our performance of this role.
2. To commence an understanding of planning a financial audit.
3. To develop the ability to question and apply critical thinking skills to real
world situations involving risk.
4. To gain an understanding of the business environment that you will be
working in by presenting you with some of the types of conditions, events,
and situations that you will encounter.
5. To further develop your communications skills. These skills are essential to
your professional development.
6. Finally, I hope to share my enthusiasm and excitement for our profession.
Our profession is continually evolving and developing. Our training allows us
to make career choices that we may never have dreamed. The learning never
stops, nor does the opportunities.
PERFORMANCE EVALUATION
“If you do something long enough, with as much variety as possible, you will
begin to learn it”. Unknown.
I believe that a variety of skills are necessary to be an excellent professional. Therefore,
there are several components to your overall grade.
Component
Weekly Quizzes
Cumulative Quiz
Homework Assignments/Participation
Group Project-Enforcement Case
Mini-Audit Workshop
Group Member evaluations
Assurance Workshop
PCAOB Workshop
Final Exam
Total
Points
40
125
10
60
20
10
10
10
250
535
Please see the Leventhal School of Accounting grading policy attached. All of the
sections of ACC 373 will be curved together. Historically, accounting electives’ mean
GPA target is a 3.3.
The grade of W is allowed only if a student withdraws by approved date. The grade of
IN is reserved for highly unusual cases where the student is unable to complete a single
item of the course requirements. See the attached policies for further information.
After each grade is posted or returned, you will have one week to challenge your grade
in writing. After this time, the grades will become final.
Weekly Quizzes
There is a weekly quiz on the reading material or the material that has been cover in
prior classes. The lowest quiz will be dropped. If you are not present, you cannot take
a make-up quiz.
Cumulative Quiz
This quiz will cover the material that has been covered through the last class prior to the
cumulative quiz. It is a way of testing your understanding of the concepts that have been
covered. The cumulative quiz must be taken at the time designated.
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Final Exam:
The final will be given during your class time during finals week for first half courses.
The test format and topics will be discussed in class. The final exam must be taken at the
time designated on the schedule. IF you have a conflict, please notify me
immediately, so we can appropriately resolve the conflict.
Group Research Project-Enforcement Case:
You will be assigned to a group on the first day of classes. Each group will consist of
approximately 3 members (my choice). All members of the group will receive the same
grade unless their level of participation is not the same as the other group members. Each
group member will sign their name indicating their level of participation in each project.
Please note that it is an honor code violation to indicate that you have participated, when
in fact you have not participated in the project. Additionally, each group member is held
responsible for the level of participation of the group members. The details of the project
will be given in class. No late papers or presentations will be accepted.
Group Evaluations:
You will be allowed to evaluate your group members.
PCAOB, Mini-Audit Workshops and Assurance Presentation:
Each of these will take place during a Friday lab period. More details relating these
events will be given during class. You are expected to attend and participate in the
workshops and presentations.
ACADEMIC INTEGRITY
Ethics and values are very important in accounting and the world of business, nonprofit
and government organizations. We will consider ethical issues throughout this semester.
Throughout the syllabus, the student's ethical standards are listed. It is expected that each
student follow these expectations. If there is a situation that results in an academic
integrity violation, the Leventhal School of Accounting Student Honor Code will be
followed.
LEVENTHAL SCHOOL OF ACCOUNTING GRADING AND ACADEMIC
STANDARDS
See the attached summary of the most important grading and academic standards of the
Leventhal School of Accounting.
RETENTION OF GRADED PAPERS
I will retain all graded material that has not been returned to the student for one semester.
After that time, I will discard all materials. E-mails and other digitally submitted
assignments will be viewed on line and then deleted after viewed.
DSP
Any student requesting academic accommodations based on a disability is required to
register with Disability Services and Programs (DSP) each semester. A letter of
verification for approved accommodations can be obtained from DSP. Please be sure the
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letter is delivered to me as early in the semester as possible. The phone number for DSP
is (213) 740-0776.
SKILL ENHANCEMENT ACTIVITIES
Throughout this course students will be challenged to develop skills that are critical to
professional success. The principal skills and related activities that will be employed in
pursuit of your development during this semester include:
Communication Skills:
Oral communication skills will be enhanced through active class participation and
presentation of cases and the group project. The participation in Accounting Firm
workshop will also provide the opportunity to enhance communication skills.
Written skills will be practiced in group projects and written examination.
Research Skills:
The project will require Internet and database research.
Critical Thinking and Reasoning:
Workshops and projects will challenge the student’s critical thinking and
reasoning skills through the use of thought provoking questions and actual cases.
Analytical Skills:
Exams will analyze and evaluate financial information. Many answers are
subjective.
Ethics:
Cases and class discussions will discuss ethical issues faced by today’s auditors.
There are several presentations of ethical cases throughout the class.
Information Technology
Cases and projects will be prepared using word-processing and/or spreadsheet
programs. Research of databases and the Internet will be utilized.
These skill-enhancing activities are designed to replicate those that are necessary and
commonly used in practice. Students are urged to work diligently in developing these
and other skills that form an important part of a successful professional.
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INDIVIDUAL CLASS TOPICS AND ASSIGNMENTS
Class
T
Th
F
Discussion
Readings
Quizzes/
Presentations
Week 1
1
1/10
2
1/12
1/13
3
1/17
4
1/19
5
6
7
8
1/20
1/24
1/26
1/27
Introduction
Auditing and
Assurance
Services
AICPA:
http://www.aicpa.org/Research/Standar
ds/Pages/default.aspx
PCAOB:
http://pcaobus.org/Standards/Auditing/
Pages/default.aspx
IFAC
http://www.ifac.org/About/
Auditing and
Assurance
Services
Guide to Clarified and Converged
Standards:
http://www.aicpa.org/InterestAreas/FR
C/AuditAttest/DownloadableDocument
s/FRCWhitePaper_Guide%20to%20Cl
arity.PDF
Assurance
http://www.aicpa.org/interestareas/frc/a
ssuranceadvisoryservices/pages/asec.as
px
Attestation
AT Sec 101
No Lab
Week 2
Enjoy!!
Accountant
Ethics
AICPA Professional Code of Conduct
http://www.aicpa.org/Research/Standar
ds/CodeofConduct/Pages/default.aspx
Sarbanes-Oxley Act (skim & will
reference through class)
http://www.soxlaw.com/index.htm
Ethics
In Class Exercise
PCAOB Lab
Week 3
Hoffman - Edison
Key Concepts
AU 110, 150, 326,
AS 15
Quiz 2
Group 1
Key Concepts
AU 312
AS 8, 11
Groups 2, 3
Assurance
Lab
Hoffman – Edison
Quiz 1
5
Class
T
Th
F
Discussion
Readings
Quizzes/
Presentations
Managing
Risk
AU 316, 317, 334
Quiz 3
Group 4
Managing
Risk
AU 314, 325
AS 5; AU 334
New COSO proposal
Groups 5,6
“Mini Audit”
Lab
Week 5
To be determined – one at USC/ one
at firm office
Cumulative
Quiz
Topics through 2/2
Reporting
AU 508
AS1
http://www.andrewskurth.com/assets/p
df/article_806.pdf
“Mini Audit”
Lab
Week 6
To be determined – one at USC/ one
at firm office
Legal Liability
FCPA
Week 4
9
1/31
10
2/2
11
12
2/3
2/7
13
2/9
14
15
2/10
2/14
http://www.fcpa.us/
16
2/16
Types of
Assurance and
other services
2/17
Groups 7,8
Quiz 4
Groups 9,13
Attestation
Compilation and Reviews
Consulting
http://www.aicpa.org/Research/Standar
ds/Pages/default.aspx
AT 201
AT 301
Group 10, 14
Audit Firm Rotation; Auditor
Independence; Audit Documentation
Articles will be posted one week prior
to class (for most current knowledge)
Quiz 5
No Lab
Week 7
17
2/21
18
Hot Topics
2/23
19
20
Wrap -up
2/24
2/28
3/1
Optional Lab
Final Week
Final
Group 11, 12
Hoffman Edison
Hoffman 415 – during regular class
times
NO CLASS
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The Leventhal School of Accounting adheres strictly to the grading standards of the University and the
Marshall School of Business Administration. Additionally, the Leventhal School of Accounting has
supplemented those standards with certain others. For students' convenience, and to prevent
misunderstanding, these additional standards are summarized below.
GRADING STANDARDS
The following grades are used: A - excellent; B - good; C - fair; D - minimum passing; F - failure. The
grade of F is awarded for failing work at the end of the semester. The assignment of minuses and pluses
when earned is required.
The grade of W (Withdraw) is assigned if the student officially withdraws after the third week but before
the end of the twelfth week of the semester. No withdrawals will be permitted after the end of the twelfth
week except by student petition to the University's Committee on Academic Policies and Procedures.
Students may elect to audit courses during the first three weeks of the semester. A course taken for audit
(V) will be assessed at the current tuition rate. A course taken for audit (V) will not receive credit and will
not appear on the USC transcript or grade report. Under no circumstances will the University allow a
change in the registration status of a course from letter grade or credit to audit (V) or vice versa after the
third week of a given semester.
The grade of IN (Incomplete, i.e., work not completed because of documented illness or some other
emergency occurring after the twelfth week of the semester) is reserved for those highly unusual cases
where, due to circumstances judged fit by the Dean of the Leventhal School of Accounting, the student is
unable to complete a specified single item of the course requirements by the time final grades are
submitted.
IN grades can be removed only by the student completing the missing requirements of the course to the
satisfaction of the instructor.
Marks of IN in courses numbered below 500 must be removed by the end of the semester following the one
in which the mark of IN was assigned. If not removed within the specified time limit, marks of IN
automatically become marks of IX (expired incomplete), with the exception of thesis and dissertation, and
compute in the GPA as an F. A student may remove the IN only by completing the work not finished as a
result of illness or emergency. It is not possible to remove an incomplete by re-registering for the course.
Previously graded work may not be repeated for credit.
G.P.A. PREREQUISITES FOR UNDERGRADUATE ACCOUNTING COURSES
The grade point average prerequisites for any undergraduate student enrolled in any accounting course is a
minimum 2.5 GPA for all completed accounting courses. In computing grade point average prerequisites,
BUAD 250ab, BUAD 280/281, 305 and 302T are considered accounting courses.
Grades in accounting courses taken at other institutions will not be included in the computation of the
cumulative accounting grade point average.
When a student's cumulative accounting grade point average falls below 2.5, the student is placed on
probation. If a student on probation does not regain a minimum accounting cumulative GPA of 2.5 after
completing the next 12 semester hours in all courses (including accounting courses) attempted within the
University, that student will not be permitted to continue as an accounting major in the Leventhal School of
Accounting. Exceptions to this policy may be granted only in unusual circumstances by the Academic
Standards Committee of the Leventhal School of Accounting. Decisions of the Academic Standards
Committee are final.
To be removed from probationary status, a student may elect either to take another accounting course or
courses for which prerequisites are met or to repeat an accounting course or courses in an attempt to earn a
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higher grade. Regardless of the course of action taken, all courses completed will be counted in computing
the cumulative accounting grade point average.
The grade of "W" in an accounting course taken while a student is on probation will not extend probation.
The probation period ends at the end of that semester during which the student completes a cumulative total
of 12 semester hours of courses in any subject(s) at the university. Under no conditions will the student be
permitted more than two successive semesters, including the summer semester, to complete the 12 semester
hours of courses.
Students must attain a minimum 2.5 cumulative accounting grade point average to graduate with a
Bachelor of Science in Accounting degree.
See the USC Catalogue for further restrictions on including grades in repeated classes in the overall grade
point average computation.
OTHER ACADEMIC STANDARDS
1.
Students enrolled in any class offered by the Leventhal School of Accounting are expected to
uphold and adhere to the standards of academic integrity established by the Leventhal School of
Accounting Student Honor Code. Students are responsible for obtaining, reading, and
understanding the Honor Code System handbook. Students who are found to have violated the
Code will be subject to disciplinary action as described in the handbook. For more specific
information, please refer to the Student Honor Code System handbook, available in class or from
the receptionist in ACC 101.
2.
The ability of students to write clearly and concisely is a necessary prerequisite to success in
accounting work. Accordingly, students will be required to demonstrate writing capability in all
accounting courses. This may be accomplished primarily through the inclusion of essay-type
questions on course examinations.
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Leventhal School of Accounting
Important Dates
Spring 2012
First Day of Class
Monday, January 9
New Student Orientation – ACCT-370a lab time
Friday, January 13, 10am
Martin Luther King Jr. Birthday, University Holiday
Monday, January 16
Last Day to Add or Drop w/out a “W” (Session 431)
Tuesday, January 17
Resumes for Spring Resume Book due
Wednesday, January 25 at 5pm
Last Day to Add or Drop w/out a “W” (Regular Session)
Friday, January 27
USC Career Fest
Monday, January 30 - Friday, February 3
Summer Leadership Info Session (Beta Alpha Psi)
Thursday, February 2, 6-9pm
Meet the Firms – California Science Center (Accounting Society)
Tuesday, February 7, 6-9pm
USC Career Day
Thursday, February 9
ACCT courses with session 431, Last Day to Drop with a “W”
Monday, February 13
Presidents' Day, University Holiday
Monday, February 20
LSOA Scholarship Applications Due
Friday, February 24
Final Exams for ACCT courses with session 431
February 27 - March 3
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