BUSINESS ASSURANCE
ACC 8033
Spring 2014
Professor: John T. Rigsby
Office: 300T McCool Hall
E-Mail: jrigsby@cobilan.msstate.edu
Phone: 325-1640
Class Room: McCool 203
Course Meeting Schedule: 11:00 am-12:15 TTh
Office Hours: 9:30-10:45 am TTh and by appointment
Required Materials: 1. Practitioner’s Guide to GAAS-2013, Wiley.
2. CPA Review—Auditing & Attestation, 2013, Bisk
Optional Texts:
3. Contemporary Auditing: Real Issues and Cases, Michel Knapp, West
Publishing Co.
Recommended
A recent auditing textbook is also useful for certain parts of the course,
e.g., ethics, 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.
Texts:
Course
Objectives:
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.
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, 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.
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 (5).................................... 40
Current Topic Write-ups (2)……………………
6
Quizzes (4)………..…….………………………. 60
Debate (1)…………………………………….… . 20
Journals (1)………..………………………..…… 5
Paper……………………………………….…….. 25
Participation………………………………….….. 29
Test 1……...…………………………………… 100
Test 2……………………………………………. 100
Final...................................................................... 150
TOTAL................................................................. 535 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 five 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. It should not be a cut and paste job, but
your interpretation of the events. 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. The first paper is due
February 4, and the second paper is due March 6.
Quizzes:
We have four quizzes over the course of the semester. One is on ethics, a
combination of multiple choice and short answer. Sample MC are in the reserve
room of the library. The second one is on the Statement on Auditing Standards through AU 508. Sample
questions are in Bisk. The third one is on the Statement on Auditing Standards from 550 to 333. The last
quiz is on statistical sampling and is a combination of multiple choice and brief exercises.
.
Debates:
Each student is to sign up from a list of topics for a short presentation of five to
seven minutes on one or another side of matters of current controversy in the
auditing profession., e.g., whether audit firms should be required to rotate from their clients periodically or
the need to pass legislation reducing auditor’s legal liabilities for lawsuits. The presentations will be made
at the beginning of class using Power Point slides; normally a pro and a con will be presented. You are to
dress well when you give your presentation but it does not have to be professional, e.g., khakis and polo
shirt is ok, shorts or tank top is not.
You are to give me a copy of your Power Point slides for the debate after completing it. I will provide you
with an example of debate notes at the beginning of the semester. You are to research several articles
discussing the topic and develop arguments (points) supporting your side of the case.
Journal:
You are to turn in a journal write-up on the second Tuesday, January 21. Its
purpose is for me to get to know you. It is to be one-page, typed and may be
e-mailed if that is more convenient.
Paper:
You are to prepare and turn in a seven page (excluding title page and reference
page), double-spaced, typed paper on some aspect of the auditing profession
incorporating the two Zeff articles that we covered in class and at least three other
articles. All sources are to be properly referenced, and a minimum of five sources are required. Footnotes
in the paper are required referencing materials you have either drawn from or for direct quotes included
in paper and are to be included at the bottom of each page. I will hand out to the class in the second week
of classes or so 1) a list of topics used in previous papers and 2) an example of a properly formatted paper.
Points will be deducted if the paper is not properly formatted and if it is late. You are not limited to the list
of topics previously used; I am handing it out just to help you develop an acceptable topic. Topics dealing
with tax or with financial accounting are not acceptable. You should see me to get the specific topic
approved, which should deal with some aspect of the audit profession.
Points will be allocated as follows: 5 pts length, 5 pts references, 5 pts footnotes, 5 pts grammar, 5 pts
development. Papers turned in that are less than seven pages long will loss points. A font of 12 is required
and too much spacing could be penalized. Something over 7 pages is what you should aim for. References
and footnotes deal with the required format of the paper. The example of a properly formatted paper
should be followed. Grammar deals with using spell check and use of the English language. Generally it is
helpful to have someone else read the paper before you turn it in: writers sometimes read something into
the paper that is not there and don’t see other things that may need correction. Development means that the
topic of the paper and why it is important are introduced at the beginning of the paper, that there should be
development of the topic in a particular direction, and some kind of conclusion should be reached. The due
date of the paper is April 8.
Participation
This score depends upon attendance and participation in class, particularly for the
Knapp cases and the articles that we cover in class. You cannot get points for
Knapp participation if you are not present. For the Knapp cases and the
articles that we cover in class, we will treat them using the Harvard case review method. I will present you
with a list of questions concerning the cases that you should consider in reading them and at the beginning
of class when we meet I will discuss the facts of the case and the questions some. Then the class will go
into break-out groups to compare and discuss their solutions to the questions, after which the class will
reconvene and each of you individually are responsible to participate and contribute to the class discussion.
We also will use a similar approach for the cases covering the SASs in that I will give you a list of
questions to consider for each SAS that is discussed in class. We usually will not have break out periods
for SAS cases, though, but go directly into them.
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 (325-3335) or email
Julie Betty at jberry@saffairs.msstate.edu
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. You
are expected 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, nor will I accept the actions of those that do.” The honor code may be accessed at:
www.msstate.edu/dept/audit/PDF/1207.pdf. 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. The use of cellular phones during exams is not
allowed. You could get a zero on an exam if you are observed using a cell phone
during the exam process.
Important Dates:
Jan 17 – Last day for dropping a course without a grade.
Jan 21 – Last day for registration or adding a course.
Feb 24 – Last day to drop a course with a “W”.
Date
Jan
Feb
14(T)
Assignments
Introduction
16(Th)
AICPA Code of Professional Conduct
ET 101, 102, 201, 203
Case: Leigh Ann Walker
21(T)
AICPA Code of Professional Conduct
ET 301, 302, 501, 502, 503, 505
Sarbanes-Oxley Act
23(Th)
“How the U.S. Accounting Profession Got
Where It Is Today: Part I”- -Stephen Zeff
28 (T)
“How the U.S. Accounting Profession Got
Where It Is Today: Part II”- -Stephen Zeff
30(Th)
Communicating with Audit Committee
AU 380, 390, 410, 411, 420, 431
Cases 17, 18
4(T)
Debate1:Daun Jang and Morganne Grimes
Audit Reports
AU 504, 508
Cases 19, 20
6(Th)
Debate2: Eric Phyfer and James Bellipanni
Audit Reports
AU 508
11(T)
Case: Crazy Eddie
Audit Reports
AU 508
13(Th)
Dating of the Independent Auditor’s Report
AU 530, 532, 534, 543, 544
Cases 21, 22
18(T)
Other Information
AU 550, 551, 552, 558
Cases 23, 24
20(Th)
Test 1 (ETs, AUs 380-544)
Journal Due
Quiz 1-Ethics
Current Topic #1
Quiz 2-AU 380-508
Mar
Mar
Apr
25(T)
Case: ZZZZ Best
Subsequent Events
AU 560, 561, 623, 625, 634
Cases 25, 26, 27
27(Th)
Debate3:Meghan Zito and Mery Ellen Crossett
Letters for Underwriters
AU 711, 722, 801, 901
Cases 28, 29
4(T)
Consideration of Fraud
AU 316, Case 6
Case: Leslie Fay Companies
6(Th)
Standards & Related Topics
AU 110-230, 311, 312, 314, 315, 317, 318
Cases 1, 2, 3, 4, 5, 7, 8
11(T)
SPRING BREAK
13(Th)
SPRING BREAK
18(T)
Debate4:Lihong Sun and Catherine Waddell
AU 322, 324, 325, 326
Cases 9, 10
20(Th)
Speaker: Career Chats
25(T)
Case: Enron
Internal Audit
AU 328, 329, 330, 331, 332, 333
Cases 11, 12, 13
27(Th)
Investments in Securities
AU 334, 336, 337, 339, 341, 342
Cases 14, 15, 16
1(T)
Debate5: Andrew Scolar
Audit Sampling
AU 350
3(Th)
Speaker: Keith Winfield of Watkins, Ward & Stafford
8(T)
Audit Sampling
AU 350
Current Topic #2
Quiz 3-AU 550-333
May
10(Th)
Audit Sampling
AU 350
15(T)
Audit Sampling
AU 350
17(Th)
Test 2 (AUs 110-342, 550-901)
22(T)
Other Professional Services
AU 2101, 2201, 2301, 2401
Cases 30, 31
Paper Due
24(Th)
Other Professional Services
AU 2501, 2601, 2701, 2800, 3100
Cases 32, 33
Quiz 4-Stat Sampling
29(T)
Other Professional Services
AU 3200, 3300, 3400, 3600
Cases 34, 35
7(W)
Final
12:00-3:00 pm