Syllabus
AC 405-FINANCIAL STATEMENT AUDITING
Spring Semester 2014
Class Time:
TH Section 002 12:00 – 1:15 PM
Instructor:
Fred Christensen
Telephone: 426-1472
Office: MBEB 3105
Office Hours: T TH 9:00 – 10:00 AM; 1:30 – 2:30 PM or by appointment
Email: fchriste@boisestate.edu
DEPT. WEBSITE:
http://ac.boisestate.edu;
PREREQUISITES: ACCT 306 Intermediate Accounting II, Admission to COBE
TEXT AND MATERIALS:
Financial Statement Auditing, Special Printing, Nineteenth Edition, Whittington & Pany,
McGraw-Hill Irwin, 2014
BLACKBOARD ON BSU BRONCO WEB:
Blackboard on the BSU Bronco Web will be used for postings of class Powerpoint, assignments,
handouts and changes in course curriculum. Quiz grades and exam scores will also be posted to
Blackboard. There is a 10 day statute of limitations on contacting the instructor about recording errors or
grade omissions. Please check your grades often.
COURSE DESCRIPTION:
This course introduces the student to external auditing concepts. This includes studying the scope and
basic concepts of auditing, including risk analysis, internal control, ethics, basic auditing procedures,
sampling, fraud, and audit reporting Since information is now an indispensable component of productive
power, the course focuses on how auditors provide assurance about the relevance and reliability of
information and information processes.
The course focuses on helping students develop a conceptual framework about the process of providing
information assurance. Underlying this framework is the fact that auditing is a series of professional
judgments, not simply a series of procedures or audit steps. These professional judgments include
understanding the professional responsibilities of auditors, legal implications of the audit process, as well
as information about planning and conducting an audit.
Reminder of Boise State’s Statement of Shared Values:
All members of the campus community are expected to adhere to Boise State’s Statement of Shared
Values (adopted Spring 2007). The common values are Academic Excellence, Caring, Citizenship,
Fairness, Respect, Responsibility, and Trustworthiness. See
http://academics.boisestate.edu/facultyombuds/files/2009/02/sharedvaluesstatement3.pdf
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Desired Educational Outcomes:
Understanding the role of assurance services in the private, NFP, and governmental sectors of
the economy
Identifying assurance engagement objectives.
Developing skills for understanding, analyzing and evaluating business
strategies and processes as they impact financial statement auditing.
Assessing economic and organizational risks related to the engagement.
Evaluating the mitigation of those risks through the use of internal controls.
Using analytical procedures to form judgments about engagement objectives
Designing engagement activities to achieve those objectives.
Applying ethical and professional reasoning to specific circumstances.
COBE Core Goals and Objectives:
This class will provide experience in the following COBE Core Goals:
1.1
1.5
1.7
1.10
2.1
3.1
3.2
3.3
3.3i
3.3ii
5.1
5.2
5.3
Accounting
Information Technology Management
Legal Environment of Business
Mathematics & Statistics
Write messages and documents that are clear, concise and compelling
Identify problems / opportunities
Gather information
Conduct effective analysis
Identify relevant facts and assumptions
Choose and apply appropriate analytical methods
Identify ethical and social responsibility issues
Identify relevant stakeholders
Evaluate possible impact of alternative courses of action on stakeholders
CLASS STRUCTURE:
The primary class format is lecture and discussion. The text and project will supplement the lectures. All
information covered in both lecture and the text may be covered on quizzes and examinations.
A seating chart will be prepared and students are expected to sit in their assigned seats. Participation in
class discussions is a key ingredient to success in this course. Individuals who miss class normally should
expect to receive a low or failing grade.
OUTCOME ASSESSMENT:
Evaluation of the student’s understanding of financial accounting will primarily involve homework,
examinations, and projects using auditing concepts learned in class. Examinations and projects will be
used to evaluate written communications. Discussion of homework will be used to develop oral
communication skills.
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HOMEWORK AND CLASS DISCUSSION:
Auditing is a practical discipline so much of the learning process occurs when concepts are applied to
examples. You are expected to attend and participate in class activities. Homework assignments will be
prepared adequate for class discussion.
CLASS PROJECTS:
Two projects are included in the assignments. These two projects are comprehensive problems designed
to facilitate student understanding of the basic auditing process. The projects will be worked in teams of
two. A paper will be prepared outlining the work done and conclusions reached. Further information will
be distributed later in the semester.
The class projects will require and measure the students’ performance in the following:
Financial Statement Analysis
Problem Identification
Decision Making
CHAPTER QUIZZES AND EXAMINATION:
There will be 9 quizzes worth 12 points each. The students may drop their lowest quiz score. The
objective of the quizzes is to help students focus on important concepts related to the material covered in
the respective chapter(s). Some of the quizzes will be in class, while a couple of the quizzes will be take
home assignments involving research of a topic.
There will be two midterm exams and a final examination. The exams will cover the material covered in
class, text material and class handouts. Test questions may come for any of these sources.
If you will miss an exam and need to make it up, you must contact me prior to date of the exam. The
make-up exam must be completed prior to the date the exam is scheduled to be returned. This is not a
free missed exam policy. The reason for the missed exam must be cleared by the instructor.
CHEATING OR PLAGERISM vs. COLLABORATIVE LEARNING
You are encouraged to study with other students outside of class – cooperative study can be an aid to
learning. You may share ideas, work on homework and projects together, solicit help, and confer with
tutors and others. However, submitting or plagiarizing another student’s work or cheating on quizzes and
exam is not allowed.
Accounting students are preparing to accept professional responsibilities after graduation. A very
important part of that professional responsibility is honesty and trustworthiness. In order to develop these
traits you should make it a priority to identify ethical dilemmas and resolve them ethically. For many
students, the decision to cheat in their classes is their first professional ethical situation.
The Boise State University Student Code of Conduct http://www2.boisestate.edu/studentconduct provides
that any instance of dishonesty in this class will result in a failing grade for THAT ASSIGNMENT.
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GRADING: The schedule of estimated total points available is as follows:
Projects (2)
100
Quizzes (8 @ 12 points)
96
Exam I
100
Exam II
100
Final Exam
154
TOTAL POINTS:
550
Grading Scale:
A+ is 97-100% of total points
A is 93-96% of total points
A- is 90-92% of total points
B+ is 87-89% of total points
B is 83-86% of total points
B- is 80-82% of total points
C+ is 77-79% of total points
C is 73-76% of total points
C- is 70-72% of total points
D+ is 67-69% of total points
D is 63-66% of total points
D- is 60-62% of total points
F is less than 60%
The instructor reserves the right to add or delete problems on this syllabus
IMPORTANT DATES TO REMEMBER:
Last Day to add a class or drop without a "W" and receive a refund (less processing fee) is
Monday, January 26, 2015; last day to drop (with a "W") is Friday, March 20, 2015.
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TENTATIVE DAILY SCHEDULE
Projects
DATE
CHAP
TOPIC
Homework
Quizzes
DUE DATES
DUE DATES
DUE DATES
(Tuesday)
(Every class)
(Thursday)
Tu Jan 13
Intro
Syllabus & Overview, The
Safety Audit
Th Jan 15
1&2
Introduction & Professional
Responsibilities
Tu Jan 20
1&2
Introduction & Professional
Responsibilities
Th Jan 22
3&4
Ethics & Legal Liabilities
3-12, 3-13, 3-27,
3-32, 3-33
Tu Jan 27
3&4
Ethics & Legal Liabilities
4-2, 4-3, 4-4, 4-29,
4-30, 4-32
Th Jan 29
3&4
Ethics & Legal Liabilities
4-36
Tu Feb 3
Exam 1
Chapters 1-4
Th Feb 5
5
Tu Feb 10
Exam 1
Th Feb 12
5
Evidence
Tu Feb 17
5
Evidence
Th Feb 19
6
Planning
Tu Feb 24
6
Planning
Th Feb 26
6
Planning
Tu Mar 3
Class
Handout
Fraud
6-28, 6-36,
Th Mar 5
Class
Handout
Fraud
Handout
1-15, 1-17, 1-27,
1-28, 1-32
2-8, 2-11, 2-16,
2-26, 2-31, 2-32,
2-33, 2-34
Chapter 1& 2 Quiz
Chapter 3 & 4 Quiz
5-1, 5-2, 5-3, 5-12
5-34,
Evidence
Return Midterm Exam I
5-41, 5-45, 5-46
Analytical
Review
Chapter 5 Quiz
6-19, 6-29, 6-30
Handout
Project 1
6-32, 6-39, 6-40
Chapter 6 Quiz
Handout
Fraud Quiz
5
Tu Mar 10
Th Mar 12
7
Internal Control
7
Internal Control
Tu Mar 17
8
Information Technology
& Internal Control
Th Mar 19
9
Information Technology
& Internal Control
Mar 23-29
Project 1 Due
7-1, 7-2, 7-9,
7-19, 7-24, 7-30
7-39, 7-40
Chapter 7 Quiz
8-19, Handout
Handout
Project 2
8-31, 8-32
***Spring Break***
Tu Mar 31
Fraud & Midterm Exam II
Chapters
5 -8
Th Apr 2
9
Audit Sampling
9-9, 9-12, 9-13,
9-19
Tu Apr 7
9
Audit Sampling
9-30,a.,b.,c, 9A-11
Th Apr 9
Return Exam II
Chapter 9 Quiz
Tu Apr 14
11
Accts. Receivable, Notes
Receivable & Revenue
Project 2 Due
Handout
Th Apr 16
14
Accounts Payable, et.al.
Audit Sampling
Handout
Tu Apr 21
16
Completing the Audit
16-31, 16-38
Th Apr 23
16
Completing the Audit
16-40
Tu Apr 28
17
Auditors’ reports
17-26
Th Apr 30
17
Auditors’ reports
17-29
Tu May 5
Final
Exam
12:00 – 1:15, Sec 002
Chapters 11 & 14 Quiz
Chapter 16 Quiz
12:30 PM2:30 PM
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