R150300 Advanced Auditing
The mission of the Department of Accountancy is to explore and advance theories and practices in accounting to cultivate competitive professionals with ethical integrity, innovative capabilities and international perspective to meet business and social needs in the global economy.
General Program Learning Goals (goals covered by this course are indicated):
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1 Graduates should be able to communicate effectively verbally and in writing.
2 Graduates should be able to solve problems strategically and should be creative and innovative in their approach to solving problems
3 Graduates should be proficient in the use of Information Technology
4 Graduates should possess knowledge and computational skills that will enable them to think critically and analytically
5 Graduates should possess necessary skills and values required of a true professional
Instructor:
Dr. Yu-Chen Lin
Phone: +886-6-2757575 ext.53442
E-mail: yclin@mail.ncku.edu.tw
Office: 63414
Office hour: Thursday 13:00-17:00 and available other times by appointment.
Prerequisite: Auditing
Course Description and Course Objectives:
This is one semester class for graduate students. This course will introduce the audit market structure, environment change, audit cases, fraud examination, and some main issue about audit research.
The objectives of this course include: (1) To prepare students for the real world audit environment; (2) To expose students to fraud assessment procedures; (3) To help students
“bridge” into the professional auditing world; (4)To let students get familiar to the audit related research literature.

Content Summary:
7 Text Ch.4
Paper
Case
8 Text Ch.5
Paper
Case
9 Text Ch.6
Paper
3 Audit environment
Audit Research
Text Ch.1
4 10/10 Holiday
5 Text Ch.2
Paper
Case
6 Text Ch.3
Paper
Case
Class Schedule
Week Chapter number or Unit
1
2 Audit environment
Contents course introduction
The rapid change in audit environment and related requirements
Sarbanes-Oxley Act (SOX); Audit Market
Environment in Taiwan
Introduction
Introduction
Skimming
Wallace, W. 1987. The economic role of the audit in free and regulated market: A review, Research in
Accounting Regulation 1: 7-34.
Case 1
Cash Larceny
Chow, C.1982. The demand for external auditing services: size, debt, and ownership influence, The
Accounting Review (April): 272-91.
Case 2
Billing Schemes
Yardley, J. A., N. L. Kauffman, T. D.
Cairney,and W. D. Albrecht. 1992. Supplier behavior in the U. S. audit market, Journal of
Accounting Literature 11: 151-184.
Case 3
Check Tampering
Kinney, William R., “25 Years of audit deregulation and re-regulation: What does it mean for 2005 and beyond?” Auditing: A Journal of Practice and Theory , V. 24, Supplement 2005.
Case 4
Payroll Schemes
Defond, Mark L., and Jere R. Francis, “Audit research after Sarbanes-Oxley,” Auditing: A
Journal of Practice and Theory, V. 24,
Supplement 2005, pp. 5-30. group

Case
10 Text Ch.7
Paper
Case
11 Text Ch.8
Paper
Case
12 Text Ch.9
Paper
Case
13 Text Ch.10
Paper
Case
14 Text Ch.11
Paper
Case
15 Text Ch.12
16 Text Ch.13
17 Text Ch.14
18 Text Ch.15
Case 5
Expense Reimbursement Schemes
Carey, Peter and Roger Simnet, “Audit partner tenure and audit quality,” The Accounting
Review, May 2006, pp. 653-676.
Case 6
Register Disbursements Schemes
Chen C. Y., C. J. Lin, and Y. C. Lin, 2008, Audit partner tenure, audit firm tenure, and discretionary accruals: Does long tenure impair earnings quality? Contemporary Accounting
Research, Vol. 25 No. 2 pp.415-45
Case7
Noncash Assets
Jagan Krishnan, Dasaratha Rama, and Yinghong
Zhang, Costs to Comply with SOX Section 404.
AUDITING: A JOURNAL OF PRACTICE & THEORY
, May 2008 Vol. 27, No. 1, pp. 169-186.
Case 8
Corruption
Abbott, Lawrence J., Susan Parker, Gary F.
Peters, and Dasaratha V. Rama, “Corporate governance, audit quality and the
Sarbanes-Oxley Act: evidence from internal audit outsourcing,” The Accounting Review, July
2007, pp. 803-835.
Case 9
Accounting Principles and Fraud
Rani Hoitash, Udi Hoitash, and Jean C.,
Bedard, Internal Control Quality and Audit
Pricing under the Sarbanes-Oxley Act.
AUDITING:
A JOURNAL OF PRACTICE & THEORY
, May 2008 Vol. 27, No. 1, pp. 105-126.
Case 10
Fraudulent Financial Statement Schemes
Interviewing Witnesses
Conducting Investigations and Writing Reports
Occupational Fraud and Abuse: The Big Picture

TEXTS AND MATERIALS:
A. Required
Joseph T. Wells, Principles of Fraud Examination, 2 nd
2007.
（指南書局代理）
edition, John Wiley & Sons, Inc.,
Papers assigned in syllabus.
Michael C. Knapp, Auditing Case, 6 th
理）
edition, Thomson South-Western
（滄海書局代
B.
Recommended
Elder, Beasley, and Arens, 2008, Auditing and Assurance Services: An Integrated
Approach, 12th ed. Pearson Prentice Hall.
Albrecht/ Albrecht/ Albrecht, Fraud Examination 2 nd
edition Thomson South-Western
Statement of Auditing Standards, Accounting Research and Development Foundation
(R.O.C.) http://www.ardf.org.tw/html/center3.htm#
審計準則公報
Code of Professional Ethics, National Federation of Public Accountants Association
(R.O.C.) http://www.roccpa.org.tw/Download.php
Course Requirement:
All students must have read the text materials before class, and try to take the initiative to raise questions on materials that you do not understand.
ASSIGNMENTS
A. Most assignments will be shown on the assignment sheet distributed to you, but some assignments only will be announced in class.
B. Assignments must be submitted on or before the due date to receive full credit.
Class Participation: This class will not only be ‘straight lecture’, but will need your active participation in paper and case report and discussion. Your preparation is critical to success in this course. You need to preview the text book, paper, and case. To make sure you have done this, you need to hand in 1-2 pages summarize for text, 1-2 pages for case, and 2-4 pages about the paper before class. During the middle of the course, and again at the end of this course please complete the following evaluation of your class participation. Your self-evaluation is non-binding, but I will consider it in determining your participation points for the class.

CLASS PARTICIPATION SELF-EVALUATION
Never Always
Attends class and arrives on time 0 1 2 3 4 5
Reads assigned material prior to class 0 1 2 3 4 5
Completes assigned cases prior to class 0 1 2 3 4 5
Contributes quality to in class discussions 0 1 2 3 4 5
What do you think the three most valuable and/or interesting topics we have discussed in class have been?
What suggestions do you have to make the class more beneficial to you?
Case Assignments : Cases provide an opportunity for in-depth application of concepts learned in class. Each case should be completed in 2-3 person teams.
Grading policy:
Participation
Cases presentations
Paper presentations
Final Exam or Term paper
20%
25%
25%
30%
Participation
20%
Cases presentations presentations
25%
Paper
25%
COMMU
CPSI
LEAD
GLOB
VSP
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Oral Commu./ Presentation 20%
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Written Communication
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Creativity and Innovation

Problem Solving
10%
20%
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Analytical Skills
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Leadership & Ethic

Social responsibility
10%
10%
10%
 Global Awareness
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Values, Skills & Profess.

Information Technology
 Management Skills
10%
10%
25%
15%
10%
10%
10%
10%
10%
10%
20%
20%
10%
10%
20%
20%
Final Exam or Term paper
30%
20%
20%
20%
10%
10%
20%

Title Date
Author Name
A.
Describe the research problem or question. Evaluate the unportance of the research question to audit practice.
B.
Explain the author’s approach to solving the problem.
C.
Describe the major findings of the research.
D.
Evaluate whether the research methodology was sound.
E.
Evaluate whether the research conclusions are valid and relevant.
F.
Identify major strengths and weaknesses of the research.
G. Suggest an alternative approach to solving the problem, or a related research issue you believe to be important. Relate the research to other research we have discussed.