BUSINESS ASSURANCE
ACC 8033
Summer 2015-2th Term
Section 51
Instructor:
Office:
Office Phone:
E-Mail:
John T. Rigsby
300T McCool Hall
325-1640
jrigsby@business.msstate.edu
Office Hours: 12:00-12:50 pm (M-F)
Class Room: 203 McCool Hall
Class Hours: Sec. 51: 10:00-11:50 am (M-F)
Required Texts:
1. Practitioner’s Guide to GAAS, 2015, Wiley
2. Bisk CPA Review—Auditing & Attestation, Bisk, 2015. 44th Ed, Thomson
Reuters
Optional Texts:
3. Comtemporary Auditing: Real Issues and Cases, Michel Knapp, West
Publishing Co.
Recommended
Texts:
A recent auditing textbook is also useful for certain parts of the course,
e.g., ethics, legal liabilities, and audit report modifications and special
reports. A copy of a recent textbook will be made available in the reserve
room of the library if you don’t have one.
This course is designed to be an in-depth study of the auditor’s
professional responsibilities, ethics, audit reporting, and other current
topics in the practice of auditing. Its purpose is to expose you to current
issues and developments in the auditing profession and in the process enhance your understanding of the
technical, ethical, social, and political issues with which you will be dealing and also develop oral and
written communication skills. Over the course of the term we will have an outside speaker dealing with
external auditing.
Course
Objectives:
Students should develop and exhibit a working knowledge of the professional
auditing standards, which will be applied in several cases. The cases, class room discussions, and oral and
written exercises are used to allow you to develop your professional judgment, critical thinking, and
communication skills. Areas that we spend additional time on are ethics, internal controls, statistics,
analytical review, effects of globalization and diversity on accounting, and audit reports. In addition,
current events affecting the auditing profession are emphasized in understanding the social and economic
role that audits play and the significant pressures and expectations that are placed on auditors, both within
the larger society by users, regulators and others, and within the CPA firm.
Course
Requirements:
1. The level of difficulty and rigor of the course material covered in
class will require you to be present. There is a direct correlation between
class attendance and performance on exams. You are preparing for a
professional career; therefore, you should view this class as a professional job assignment. Attendance is
expected, especially as fast as the summer term goes!
2. A key ingredient for success is self-study. Classroom lectures and activities are
designed to guide you and direct your learning experience. Much of your learning occurs outside the
classroom; therefore it is your responsibility to diligently study the assigned course materials. Considerable
effort on your part is required and is a long-term investment in yourself.
3. You need to apply concepts, not just memorize them, as this course is aimed
at developing and internalizing a model for making audit judgments.
4. You are encouraged to work with others in your study group to go over the
course material, as auditing is a process of developing judgment. The more you can verbalize the concepts,
the better prepared you are for concept application. It is important to develop the professional habit of both
developing your own mind and listening to and learning from those around you. You should value the views
and perceptions of others and also remember that you have the right and freedom to challenge their thinking
as well. Everyone should be dealt with in a professional manner.
Assumptions:
I am operating on the assumption that you want to gain the most you can
from your studies and will therefore invest yourself in readings and
assignments and come to every class prepared to engage fully. Therefore, learning is student-centered,
active, integrated, cumulative, and connected. I assume you will take responsibility for your own learning
and will also contribute to the learning of others. What you gain from this experience is in direct
correlation to what you invest in it. You may assume that I care about your success—personally,
academically, and professionally. I trust you will work to balance effectively your personal, academic, and
professional commitments. I want you to gain the most possible from this experience and I am committed to
my facilitator role in this venture. I want to hear your experiences, ideas, and feedback; and will hold you
accountable to high academic standards.
Grades:
Grades will be assigned on the following basis:
Activity
Maximum Points
Knapp Case Write-ups (4)...................................... 28
Current Topic Write-ups (2)………………….…
6
Quizzes (3)………………………………………. 45
Debate ….………….……………………………
20
Journal (1)..…….………………………………
5
Paper…………………………………………….. 25
Participation……………………………………… 21
Test 1……………………………..……………. 100
Test 2………………………………………….
100
Final..................................................................... 150
TOTAL............................................................... 500 pts.
The 90-80-70-60 grade scale will be used.
Knapp Case
Write-ups:
Each student will be assigned to a team which is responsible for a typed write-up
of the four Knapp cases assigned, which are due on the day the cases are to be
presented. Points will be deducted for each day the case write-up is late. All team
members will receive the same grade, which will be based upon whether (1) the answers address the
questions asked and (2) the clearness and correctness with which ideas are presented.
Current Topic
Each student is to prepare two one-page summaries of current events
occurring in the auditing profession or the business world. The one-page
summaries are to be typed, single space, with a single blank line between paragraphs. They may discuss
multiple events or a single event. Your name, the course title, and current event 1 or 2 is to be indicated on
the back of the page, which is to be folded when turn in. Due dates are indicted in assignments.
Quizzes
We have three quizzes over the course of the summer. One is on ethics, one is on
Statements on Auditing Standards, and one is on Audit Sampling.
Debates:
Each student is to sign up from a list of topics for a short Power Point presentation
of five to seven minutes on one or another side of matters of current interest in the
auditing profession., e.g., whether audit firms should be required to rotate off from their clients periodically
or if SARBOX goes too far. Its purpose is to expose you to several areas of controversy and continuing
change in auditing and the elements that make up a persuasive argument. The presentations will be made at
the beginning of class; a pro and a con will be presented. You are to dress well when you give your presentaion but it does not have to be professionally, e.g., khakis and polo shirt is ok, shorts or tank top is not.
Journal:
You are to turn in a journal write-up on Tuesday of the first full week, July 14.
Its purpose is for me to get to know you. It is to be one page, typed and may be emailed in if that is more convenient.
Paper:
Each student will be assigned to a team that is to prepare and turn in a eight to
twelve page (excluding title page and reference page), single-spaced, typed (12
type) paper on some aspect of the development of the auditing profession
incorporating the two Zeff articles that we covered in class and a number of other articles. All sources are to
be properly referenced using the APA method. Possible points will be allocated between the development
of the topic, length, references, and grammar. The due date is July 22. The paper should have an
introduction, development and a conclusion.
Participation
Participation and attendance in class is critical to your success in this class.
Exams/
Final:
The exams consists of a combination of multiple-choice questions and
essays/exercises. The final is comprehensive, with the material covered by the
multiple choice questions equally weighted. It also includes essays/exercises on
material covered since the last test.
ADA Statement:
If you need academic accommodations based on a disability, contact the
office of Student Support Services in Room 01, Montgomery Hall (3253335) or email Julie Betty at jberry@saffairs.msstate.edu
Title IX:
MSU is committed to complying with Title IX, a federal law that prohibits
discrimination, including violence and harassment, based on sex. This means that
MSU’s educational programs and activities must be free from sex discrimination, sexual
harassment, and other forms of sexual misconduct. If you or someone you know has experienced
sex discrimination, sexual violence and/or harassment by any member of the University
community, you are encouraged to report the conduct to MSU’s Director of Title IX/EEO
Programs at 325-8124 or by e-mail to titleix@msstate.edu. Additional resources are available at
http://www.msstate.edu/web/security, or at http://students.msstate.edu/sexualmisconduct/.
Academic
Integrity:
Accounting is a profession, the basis of which is our character and
integrity. Since you are training to be professionals, you are expected to act
as such. Also all MSU students are to abide by the honor code of the University:
“As a Mississippi State University student I will conduct myself with honor and integrity at all times. I will
not lie, cheat, or steal, nor will I accept the actions of those who do.” All occurrences of academic
misconduct will be handled in accordance with the Academic Misconduct Policy
(www.msstate.edu/web/security.html).
Cellular Phones:
To avoid class disruptions, cellular phones and pagers must be placed in the mute
or off mode during class. Cellular phones and pages must be turned off during
all examinations and are not to be used. If I see a cell phone during a test then the
exam will be confiscated and you will get zero points.
Important Dates:
July 7 – Last day for dropping a course without a grade.
July 8 – Last day for registration or adding a course.
July 24 – Last day to drop a course with a “W”.
Date
July
Assignments
Introduction
Code of Professional Conduct
ET 101, 102, 201, 203, 301, 302
Sarbanes-Oxley Act
7 (T)
Other
8 (W)
Leigh Ann Walker
Code of Professional Conduct
ET 501, 502, 503, 505
9(Th)
“How the U.S. Accounting Profession Got
Where It Is Today: Part I” –S. Zeff
Subsequent Events
AU 560, 570, 580, 585
Cases 13, 14
10(F)
“How the U.S. Accounting Profession Got
Where It Is Today: Part II” –S. Zeff
Group Financial Statements
AU 600, 610, 620, PCAOB 10
Case 15, 16, 39
13(M)
Reporting on Financial Statements
AU 700, 705, 706, PCAOB 1, 14
Case 17, 31, 43
Ethics quiz
14(T)
Crazy Eddie
Consistency of Financial Statements
AU 708, 720, 725, 730, PCAOB 6, 17
Cases 18, 35, 46
Journal #1 due
Current topic write-up
15(W)
Special Purpose Frameworks
AU 800, 805, 806, 810, 905, 910
Cases 19, 20
SAS quiz
16(Th)
Debate1:
Reporting on Application
AU 915, 920, 925, 930
Cases 21, 22, 23
Current topic write-up
17(F)
Debate2:
Debate3:
Fieldwork Standards
AU 200, 210, 220, 230, 240, PCAOB 3, 7
Case 1, 2, 3, 32, 36
20(M)
Test I (ETs, AU 560-930)
21(T)
Kansayaku
Audit Sampling
AU 530
22(W)
Debate 4:
Debate5:
Audit Sampling
AU530
Speaker: Keith Winfield, Watkins, Ward & Stafford (10:50-11:50 am)
23(Th)
Debate6:
Debate7:
Stat sampling quiz
Laws and Regulations
AU 250, 260, 265, 300, 315, 320, PCAOB 4, 5, 8, 9, 16
Cases 4, 5, 6, 33, 34, 37, 38, 45
24(F)
Response to Assessed Risk
AU 330, 402, 450, 500. 501, PCAOB 11, 12, 15
Cases 7, 8, 9, 40, 41, 44
27(M)
Debate8:
Debate9:
External Confirmations
AU 505, 510, 520, 540, 550
Cases 10, 11, 12
28(T)
Test 2 (AU 200-501 and PCAOBs)
29 (W)
Debate10:
Debate11:
Attestation Standards
AT 20, 50, 101, 201, 301, 401
Case 24, 25
Paper
30(Th)
Debate12:
Registered Auditors, South Africa
Attestation Standards
AT 501, 601, 701, 801, AR 60-90
Cases 26, 27
31 (F)
Compilations and Reviews
AR 200, 300, 400, 600
Cases 28, 29
August 3 (M)
6(Th)
Catch-up and Review
Final Exam (8-11 am)
Note: Assignments are subject to change.