Date Approved:
Date Revised: 08/12
COURSE SYLLABUS
Syllabus for: ACCT 2810 AUDITING
Former Quarter Course(s): ACT 2810
Catalog
Description:
This course is a study of auditing theory and procedures with emphasis on
areas of deviation from acceptable accounting principles and on problems that
auditors encounter in preparing an audit report. Topics discussed include
verifying accounting data, preparing reports, and examining auditor liability
in the preparation of financial statements.
Credit Hours: 3
Contact Hours: 3
Lab Hours: 0
Prerequisite(s): ACCT 1020 or permission of the Business & Technology Department Chair
Required
Text(s):
Auditing: A Business Risk Approach, 8th edition, Rittenberg, Johnstone, & Gramling, SouthWestern
Required Supplies/Material(s):
Recommended Supplementary Material(s): none
Student Group for Whom Course is Required/Intended: Students majoring in Business Technology
with a concentration in Accounting are required to complete the course.
ACCT 2810 AUDITING
STUDENT LEARNING OUTCOMES
1. Define the objective of auditing and describe the role of auditing in meeting society’s demands for
unbiased financial and internal control information.
2. List the types of audit services providers and the knowledge needed by professionals entering the
public accounting profession.
3. Identify organizations that affect the public accounting profession and the nature of their effects.
4. Identify the various auditing standards that affect the public accounting profession and compare
these auditing standards on relevant dimensions.
5. Describe the audit opinion formation process and list key steps in that process.
6. Identify and describe non-audit assurance and attestation services provided by external auditors and
discuss the relevant professional standards.
7. Describe the unique roles of internal auditors and governmental auditors.
8. Describe why ethical behavior by auditors is required to justify the public’s trust.
9. Describe ethical theories that can be used in addressing ethical problems.
10. Describe and apply the AICPA’s Code of Professional Conduct.
11. Discuss the importance of independence to the public accounting profession.
12. Discuss the major threats to independence and approaches to mitigate those threats.
13. Identify the various types of risk relevant to conducting an audit.
14. Describe how audit firms manage engagement risk by making high-quality client acceptance and
retention decisions.
15. Discuss the relevance of materiality in an audit context, and articulate the relationship between
materiality and audit risk.
16. Describe the audit risk model and its components.
17. Use the audit risk model to plan the nature of procedures to be performed on an audit engagement.
18. Use preliminary analytical techniques to identify areas of heightened risk of misstatement.
19. Articulate the underlying principles of an effective control environment.
20. Identify common internal control activities found in many organizations.
21. Describe components contained in management reports on internal control over financial reporting.
22. Describe the process that external auditors use to assess internal controls.
23. Describe the nature of documentation the auditor develops to support the understanding and
assessment of internal control.
24. Discuss the requirements of the professional auditing standards related to the performance of
integrated audits of internal control over financial reporting and audits of financial statements.
25. Describe external audit reports on internal control over financial reporting.
26. Describe the steps in performing an integrated audit.
27. Identify the potential outcomes concerning the results of control testing and their implications for
subsequent substantive tests of account balances.
28. Identify the overall framework by which audit evidence is identified, gathered, evaluated, and
documents.
29. Describe financial statement assertions and how the assertions drive the choice of evidence to be
gathered.
30. Describe factors that affect the appropriateness and sufficiency of audit evidence.
31. Identify basic audit procedures and they relate to evaluating underlying financial statement
assertions.
32. Explain the nature, design, and purposes of audit programs.
33. List and describe the tools used by auditors to gather and evaluate audit evidence.
34. Explain the risks associated with sampling procedures and the nature of inferences required of all
audit procedures.
35. Describe attribute sampling and use it to test controls.
36. Discuss the use of, and apply, analytical procedures as a substantive test of account balances
and describe how analytical procedures complement and affect other approaches to gathering
audit evidence.
37. Define the various types of fraud that affect organizations.
38. Describe the auditor’s evolving responsibility for fraud detection and high-profile frauds that have
affected the design and execution of audits.
39. Describe auditing standards and procedures that reflect a responsibility to detect fraud.
40. Describe the auditor’s responsibility to report fraud and illegal activities.
41. Distinguish between forensic accounting and auditing.
42. Explain the concept of accounting cycles or processes and their impact on audit approaches and
identify the accounts and relevant assertions in the revenue cycle.
43. Identify risks to reliable financial reporting in the revenue cycle, including fraud risks and other risks
related to proper revenue recognition.
44. Describe how to use preliminary analytical procedures to identify possible misstatements in the
revenue cycle.
45. Articulate and apply standard substantive audit procedures applicable to testing revenue balances
and accounts receivable balances and explain how these procedures will be impacted by the results
of the tests of controls.
46. Describe audit procedures for the revenue cycle that address fraud risk.
47. Describe the activities, accounts, and assertions included in the payment and acquisition cycle.
48. Identify risks to reliable financial reporting in the acquisition and payment cycle and discuss relevant
fraud considerations in the acquisition and payment cycle.
49. Describe how to use preliminary analytical procedures to identify possible misstatements in the
accounts and assertions related to the acquisition and payment cycle.
50. Describe why it is important for the auditor to develop an understanding of internal controls, identify
controls typically present in the acquisition and payment cycle, and identify tests of controls used to
test the effectiveness of controls in this cycle.
51. Describe the substantive audit procedures that should be used to test accounts payable and related
expense accounts and assertions in the acquisition and payment cycle.
52. Describe the substantive audit procedures that should be used to test inventory and cost of goods
sold.
53. Summarize and resolve detected misstatements.
54. Describe the process by which audit firms make client continuance decisions.
55. Review the adequacy of disclosures.
56. Conduct a final analytical review of the financial statements.
57. Review subsequent events that occur after the balance sheet date and assess proper treatment.
58. List and apply the steps involved in assessing the going-concern assumption.
59. Identify issues to communicate to the audit committee.
60. Identify issues to communicate to management via a management letter.
61. Describe the levels of assurance that an auditor may provide when associated with various auditor
services and auditor reports.
62. Describe the information that is included in an audit report.
63. Identify the types of audit opinions and the circumstances in which each type is appropriate.
64. Explain the differences among audit, review, and compilation engagements in terms of procedures
performed, degree of responsibility taken by the accountant, and reports rendered.
65. Describe various attestation engagements and the types of reports that will be issued for these
engagements.
66. Discuss the liability environment in which auditors operate, the factors that have led to increased
litigation against auditors, and the effects of lawsuits on audit firms.
67. Explain the impact of key court cases on the public accounting profession.
68. Discuss emerging and unsettled liability issues of concern to auditors.
69. Identify professional requirements that help assure audit quality and minimize auditor exposure to
liability suits.
SUGGESTED EVALUATION PLAN
ACCT 2810 AUDITING
Task
Weight
SLOs
Exam #1 (Chapters 1, 3, 17)
18%
1 through 12
66 through 69
Exam # 2 (Chapters 4-6)
18%
13 through 27
Exam #3 (Chapters 7-9)
18%
28 through 41
Exam #4 (Chapters 10, 11, 15, 16)
18%
42 through 65
Discussions
10%
1 through 69
Quizzes
10%
1 through 69
Cases
8%
1 through 69
FINAL GRADING PLAN
ACT 2810 AUDITING
Based Upon Percentages
A = 90 - 100
B = 80 - 89
C = 70 - 79
D = 60 - 69
F = Below 60
Additional Comments: Case assignments are based on recent lawsuits filed due to audit failures.
INSTRUCTIONAL SCHEDULE
ACCT 2810 AUDITING
Week
Objective
1
Content to be Covered
Student Assignments/
Supplementary Material(s)
Introduction to the course
Post introduction to discussion
board
2
1 through 7
Chapter 1
Read Chapter 1
Homework & Quiz as
assigned
3
8 through 12
Chapter 3
Read Chapter 3
Homework & Quiz as
assigned
4
66 through 69
Chapter 17
Read Chapter 17
Homework & Quiz as
assigned
5
1 through 12;
66 through 69
Exam 1 (Ch. 1, 3, 17)
Chapter 4
13 through 18
Read Chapter 4
Homework & Quiz as
assigned
6
19 through 23
Chapter 5
Read Chapter 5
Homework & Quiz as
assigned
7
24 through 27
Chapter 6
Read Chapter 6
Homework & Quiz as
assigned
13 through 27
Exam 2 (Ch. 4-6)
Chapter 7
8
28 through 32
Read Chapter 7
Homework & Quiz as
assigned
9
33 through 36
Chapter 8
Read Chapter 8
Homework & Quiz as
assigned
10
37 through 41
Chapter 9
Read Chapter 9
Homework & Quiz as
assigned
Exam 3 (Ch. 7-9)
Chapter 10
Read Chapter 10
Homework & Quiz as
assigned
28 through 41
11
42 through 46
INSTRUCTIONAL SCHEDULE
ACCT 2810 AUDITING (con't)
12
47 through 52
Chapter 11
Read Chapter 11
Homework & Quiz as
assigned
13
53 through 60
Chapter 15
Read Chapter 15
Homework & Quiz as
assigned
14
61 through 65
Chapter 16
Read Chapter 16
Homework & Quiz as
assigned
15
42 through 65
Final Exam (Ch. 10, 11, 15, 16)