San Diego State University
Charles W. Lamden School of Accountancy
ACCTG 431 (Audit)
Spring 2014
Instructor:
Office:
Office Hours:
E-mail:
GA:
Yan Luo
SSE – 2415
Tuesdays and Thursdays, 2:00PM – 3:00PM or by appointment
sdsu.431@gmail.com
Keith Stanfill (email: audit431ga@gmail.com )
COURSE OVERVIEW
This course will focus on the major concepts of assurance services, risk, materiality, and
the accountant’s role in applying these concepts. It introduces students to the audit practice
environment and foundations for audit judgement. Much of what we do in this class will be
based on your prior knowledge of accounting principles, business transactions, financial
reporting, and managerial decision-making. We will also learn how to recognize the
ethical consequences of the choices and decisions that are part of accounting.
BSBA PROGRAM GOALS
BSBA students will graduate being:
 Effective communicators
 Critical thinkers
 Able to analyze ethical problems
 Global in their perspective
 Knowledgeable about the essentials of business
ACCTG 431 – Audit Module contributes to these goals through the following student
learning outcomes.
1. Identify and define major concepts of assurance services, including risk,
materiality, and professional standards.
2. Explain and model the accountants’ role in applying the concepts from (1).
3. Apply judgment and critical thinking to evaluate and communicate the reliability
of financial information.
4. Analyze evidence for competency and relevancy in relation to management’s
assertions.
5. Identify and analyze ethical consequences of choices and decisions made by
management and accountants.
PREREQUISITES:
Finance 323; minimum grade of C in Accountancy 333 and 334. .
TEXTBOOKS
Required: Principles of Auditing & Other Assurance Services, 19th Ed., Whittington &
Pany, McGraw-Hill, 2014.
Whittington Website: http://www.mhhe.com/whittington19e .
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GETTING READY FOR CLASS
The schedule identifies specific problems from each chapter that you should prepare as
you read and study the chapter materials. Use the problems to help you follow the
readings and diagnose where you have questions or are confused. Be ready to discuss
your results and /or questions in class. The solutions are will eventually be posted to
Blackboard, as a tool for you to figure out what you know and, more important, still don’t
know about the subject. If all you do is read the solutions, they will make perfect sense
and you will feel that you “know” the materials. However, being familiar with the
material, which you can get from just reading the solutions, is NOT the same as
understanding the material, which you can only get from lots of hands-on practice.
Professor Martha Doran developed the following guide that will make the textbook
reading process more active and more lasting.
“Here’s my Guide for How to Read and Get Ready for Class. It’s how I think you can
be successful in the course.
 Begin each chapter by starting at the back of the chapter. (Yes, you read right!)
 Read the Chapter Summary, the Key Terms and the Review Questions. Think
about any prior experience or knowledge you have that relates to the chapter. Jot
it down.
 Then take the MC Quiz (online learning center – OLC). Pay attention to concepts
you know and don’t know.
 Now turn to the beginning of the Chapter and read through the Learning
Objectives. Compare these to your own experiences that you jotted down.
 At the same time, turn back to the Practice problems and see which objectives you
are assigned to practice. These are your focus in the chapter. Make a check by the
learning objectives and note the problem you will practice.
 Work a specific problem as you finish with reading the objective(s) that relate to
that problem.
 Compare your results with the posted solutions.
 Make notes of questions you have.
 Then, take the MC Quiz again.
 Bring any questions or items you would like to share to class.
 These steps will get your mind ready to make the new information your own (not
a RUT education, you know….Retain Until Test) and it will help you become a
better reader, by learning to use your critical thinking skills as you read.”
Professionalism/Class participation: Students are expected to treat this course in an
appropriate business manner which consists of two parts:
Being Prepared
 Students are expected to come to class prepared
 Students are expected not just to come to class but to also be prepared to
ask and/or answer questions (including ones I ask you directly).
Acting Professionally
 Observe class room policies
 Observe e-mail policies
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 As far as grading of exams, use appropriate appeals process
 Ask questions if you are not sure, do not assume
Acting professionally includes making appropriate comments, not reading a newspaper,
not text messaging, not using a laptop without permission, not having side conversations,
not e-mailing professor inappropriately, and treating everyone with respect.
ACADEMIC INTEGRITY
The SDSU Standards for Student Conduct (http://www.sa.sdsu.edu/srr/conduct1.html)
states that unacceptable student behavior includes “cheating, plagiarism, or other forms
of academic dishonesty that are intended to gain unfair academic advantage.”
Unprofessional conduct adversely impacts your fellow students, the accounting faculty,
the School of Accountancy, SDSU, and the accounting profession. The School of
Accountancy takes academic honesty very seriously and vigorously enforces university
policy related to any such infractions. As such, any student suspected of academic
dishonesty will be reported to the SDSU Center for Student Rights and Responsibilities;
if found responsible for academic dishonesty, the student will receive an F in ACCTG
431.
It is the responsibility of the student to sign the Honor Code pledge and turn it in to the
instructor by the third day of class. The student must write in full and sign the statement,
“I have neither given or received, nor will I give or receive, unauthorized aid on any
quizzes, assignments and examinations of ACCTG 431.” It is your responsibility to get
this into me, hard copy, with your signature on it. Failure to do so by the end of the
third class session will result in a 5 point deduction to your module grade. An
additional 5 points will be deducted from your module grade for every week that
you fail to do this.
COURSE ACTIVITIES
Being prepared and actively participating are key ingredients to your success in this class.
Your grade of this class will be determined based on your performance on exams and
group project.
Exams: Three exams (each worth 25%), as noted on schedule. All exams are closedbook, closed-notes. For the objective portions of the exams, you will need to have
Scantron Form No. 882-E (the small green ones). No Make-up Exams.
Group Project: One out of class group project which your group will present in the last
two classes, as noted on schedule. Your written report is due on December 12, 2014. The
project guidelines and example materials will be posted to BlackBoard by September 30,
2014.
GRADED EXAMS REVIEW POLICY
Graded exams will be posted on the Blackboard. If you have questions or disputes over
the score you received, you are required to promptly raise the question or dispute within 5
calendar days of the posting of the score. Exams can be reviewed during office hours,
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but will not be returned. Unclaimed work will be disposed of on the last day of the
semester.
GRADE DETERMINATION
Category
Exam 1
Exam 2
Exam 3
Group Project (10% presentation + 15% written report)
Total
Percent
25%
25%
25%
25%
100%
SYLLABUS
This course syllabus is an important document to you. It is your responsibility to obtain a
copy of course syllabus and to understand all the information in it. The instructor
reserves the right to make changes on the syllabus as the session proceeds.
E-MAIL POLICY
If you need to contact me through e-mail, please follow the following guidelines.
1) All inquiries should be sent to audit431ga@gmail.com (cc:
sdsu.431@gmail.com). My GA and I will only reply emails sent to these email
accounts.
2) Include your full name, section and subject information. I will no reply email
without your full name, section and subject information. An example for the first
exam is as follows: Joe Johnston Section 01 Exam#1.
3) For help with questions and problems, before e-mailing me you should:
 Check the syllabus, lecture PowerPoint slides and Blackboard
 Check with your study partners
4) The expected turnaround time for emails sent between 9am to 8 pm, MondayFriday is within 24 hours. If you have not received any reply after that, please
assume that I have not received your email and resend your previous email.
Student with Disabilities
If you are a student with a disability and believe you will need accommodations for this
class, it is your responsibility to contact Student Disability Services at (619) 594-6473.
To avoid any delay in the receipt of your accommodations, you should contact Student
Disability Services as soon as possible. Please note that accommodations are not
retroactive, and that I cannot provide accommodations based upon disability until I have
received an accommodation letter from Student Disability Services. Your cooperation is
appreciated.
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ACCTG 431 AUDITING Schedule
Fall 2014
The following is the schedule for required readings and suggested practice problems and graded assignments. I reserve
the right to change or modify this schedule, based on my on-going analysis of the needs of the class. Any changes will
be announced in class and posted to Blackboard.
Class
Meeting &
Dates
1.Tuesday
8/26/2014
2. Thursday
8/28/14
Required Readings & Suggested Practice
3. Tuesday
9/2/14
Chapter 3: Professional Ethics
4.Thursday
9/4/14
5. Tuesday
9/9/14
6.Thursday
9/11/14
7. Tuesday
9/16/14
8. Thursday
9/18/14
Chapter 4: Legal Liability
9. Tuesday
9/23/14
10. Thursday
9/25/14
11. Tuesday
9/30/14
12. Thursday
10/2/2014
13. Tuesday
10/7/2014
14. Friday
10/10/2014
15. Tuesday
10/14/2014
16.Thursday
10/16/2014
17. Tuesday
10/21/2014
18.Thursday
10/23/2014
(Principles of Auditing & Assurance Services,
Whittington & Pany, 19th edition)
Chapter 1: Role of the Public Accountant
Chapter 2: Professional Standards
Chapter 5: Audit Evidence and
Documentation
Chapter 5: (continue)
Audit Evidence and Documentation
Chapter 6: Audit Planning, Understanding
the Client, Assessing Risk, and Responding
Chapter 6: (Continue)
Audit Planning, Understanding the Client,
Assessing Risk, and Responding
Chapter 7: Internal Control
Chapter 7: (Continue) Internal Control
Chapter 9: Audit Sampling
Chapter 9: (Continue) Audit Sampling
& Review 1-7,9
Chapter 10: Cash and Financial Investments
Chapter 10: (Continue)
Cash and Financial Investments
Exam 1(Chapters 1-7,9), 90 minutes
Chapter 11: Accounts Receivables, Notes
Receivable, and Revenues
Chapter 11: (continue)
Accounts Receivables, Notes Receivable,
and Revenues
Chapter 12: Inventories and Cost of Goods
Sold
Chapter 12: (Continue)
Inventories and Cost of Goods Sold
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Suggested Problem Sets
Tentative
1-2, 1-4, 1-5, 1-7, 1-24, 1-28,
1-32, 1-33, 1-34, 1-36
2-1, 2-2, 2-5, 2-8, 2-15, 2-16,
2-19, 2-22, 2-30, 2-31, 2-32,
2-33, 2-34
3-2, 3-5, 3-7, 3-9, 3-12, 3-24,
3-26, 3-27, 3-29, 3-32, 3-33,
3-35, 3-38, 3-43, 3-45
4-2, 4-5, 4-6, 4-12, 4-18, 4-28,
4-34, 4-37
5-8, 5-10, 5-11, 5-14, 5-17,
5-20, 5-33, 5-35, 5-38, 5-39,
5-41, 5-43, 5-47, 5-53
6-1, 6-3, 6-6, 6-8, 6-13, 6-18,
6-19, 6-20, 6-21 6-24, 6-31,
6-32, 6-38, 6-39, 6-43
7-1, 7-4, 7-8, 7-13, 7-17, 7-18,
7-19, 7-22, 7-24, 7-29, 7-33,
7-35, 7-36, 7-40, 7-42
9-1, 9-2, 9-13, 9-26, 9-28,
9-29, 9-37
10-2, 10-7, 10-12, 10-13,
10-16, 10-23, 10-26, 10-27,
10-31, 10-35, 10-37, 10-40,
10-43
11-2, 11-9, 11-13, 11-17,
11-18, 11-27, 11-34, 11-35,
11-36, 11-37, 11-39, 11-40
12-2, 12-6, 12-7, 12-9, 12-10,
12-17, 12-21, 12-23, 12-29,
12-30, 12-33, 12-34, 12-37,
12-39
Class
Meeting &
Dates
19. Tuesday
10/28/2014
20.Thursday
10/30/2014
21.Tuesday
11/4 /2014
Required Readings & Suggested Practice
(Principles of Auditing & Assurance Services,
Whittington & Pany, 19th edition)
Chapter 13: Property, Plant, and Equipment: 13-1, 13-4, 13-7, 13-15, 13-17,
Depreciation and Depletion
13-19, 13-32, 13-33, 13-34,
13-35, 13-37
Chapter 13: (Continue)
Property, Plant, and Equipment: Depreciation
and Depletion
Chapter 14: Accounts Payable and Other
Liabilities
Chapter 14: (Continue)
Accounts Payable and Other Liabilities
Review 10-13
22.Friday
11/7/2014
23.Thursday
11/13/2014
24. Tuesday
11/18/2014
25.Thursday
11/20/2014
26. Tuesday
11/25/2014
27.Tuesday
12/2/2014
28.Thursday
12/4/2014
29.Friday
12/5/2014
12/12/2014
Suggested Problem Sets
Tentative
14-1, 14-4, 14-5, 14-7, 14-8,
14-9, 14-15, 14-17, 14-21,
14-22, 14-23, 14-24, 14-27,
14-28, 14-29, 14-33, 14-37,
14-39, 14-40
EXAM 2 (Chapters 10-13), 90 minutes
Tuesday 11/11/2014 Veterans Day (NO CLASS)
Chapter 15: Debt and Equity Capital
15-2, 15-5, 15-13, 15-14,
15-18, 15-32,
Chapter 16: Auditing Operations and
16-1, 16-3, 16-4, 16-9, 16-14,
Completing the Audit
16-15, 16-16, 16-17, 16-18,
16-22, 16-23, 16-25, 16-28,
16-31, 16-33, 16-36, 16-38,
16-39, 16-41, 16-43
Chapter 17:Auditors’ Reports
17-1, 17-3, 17-5, 17-7, 17-8,
17-10, 17-12, 17-13, 17-24,
17-25, 17-26, 17-27, 17-28,
17-29, 17-30, 17-36
Chapter 18: Integrated Audits of Public
18-1, 18-2, 18-3, 18-4, 18-5,
Companies
18-6, 18-9, 18-11, 18-13,
18-15, 18-16, 18-18, 18-20,
Review Chapter 14-18
18-21, 18-24, 18-25, 18-27,
18-28, 18-31, 18-32, 18-35,
18-36
Thursday 11/27/2014 Thanksgiving (NO CLASS)
Presentations in class
Presentations in class;
EXAM 3 (Chapters 14-18), 90 minutes
Written report of group projects due
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