Syllabus for Advanced Auditing, 2007 Spring
EMBA Program, Fu Jen Catholic University
Instructor: Jia-xun Jiang
Office: SL207
Phone no: (02) 2905- 2655
Office hour: Mon. 10:00~12:00, Tue. 10:00~12:00; 14:00~16:00
E-mail: 054258@mail.fju.edu.tw
I. Course Objectives
Quality financial statement audits underlie the well functioning of capital
market. This course aims to investigate the demand for and the supply of quality
financial statement audits. A quality financial statement audit depends upon three
factors: (1) the incentives of auditors which are largely determined by the
client-auditor relationship, the structure of audit market, and the governance
structure of audit profession (e.g., self-regulation, government oversight and legal
system); (2) the expertise of auditors which they have obtained from education,
training and practicing experience. The professional rules (e.g., GAAP and GAAS)
also constitute a standard set of requirements for audit expertise; (3) the ethical
value of auditors which reflecting the outcome of socialization process of auditors
through culture, education and the organizational influences of audit firms.
By demonstrating how these three factors interact and determine the outcome
of audit process, this course provides a framework to help students understand and
interpret audit phenomenon in practice. Besides, it helps students develop the
abilities to undertake an auditing research by exposing them to dimensions of
contemporary research in auditing.
II. Case Discussion
Case 1: Enron
 Movie: “Enron: The Smartest Guys in the Room”



Thibodeau, J. C. and D. Freier. 2007. Auditing After Sarbanes-Oxley:
Illustrative Cases. McGraw-Hill Irwin. Case 1.1, Case 2.1, Case 3.1, Case 4.1,
Case 4.3.
Brody, R. G., D. J. Lowe, and K. Pany. 2003. Could $51 Million Be
Immaterial When Enron Reports Income of $151 Million. Accounting
Horizons 17 (June): 153-160.
Powers, W. C., R. S. Troubh, H. S. Winokur. 2002. Report of Investigation by
the Special Investigative Committee of the Board of Directors of Enron Corp.
Case 2: 博達


葉銀華，2005，蒸發的股王，商智文化
黃培琳與陳惠玲，2005，虛偽交易第一好手─博達，貨幣觀測與信用評
等第56期：88-99
Case 3: 陞技
 方順逸與陳惠玲，2005，虛偽交易第二把交椅─陞技，貨幣觀測與信用
評等第56期：100-111
III. Paper Reading, Presentation and Discussion
1.
Muzatko, S. R., K. M. Johnstone, B. W. Mayhew, and L. E. Rittenberg.
2004. An empirical investigation of IPO under-pricing and the change to
the LLP organization of audit firms. Auditing: A Journal of Practice &
Theory 23 (March): 53-67.
2.
劉嘉雯，2004，匯豐事件對審計客戶影響之實證研究，會計評論，第39
期：25-53
3.
DeAngelo, L.E. 1981. Auditor independence, low balling, and disclosure
regulation. Journal of Accounting and Economics (August): 113-127.
4.
Frankel, R., M. Johnson, and K. Nelson. 2002. The relation between
auditors’ fees for non-audit services and earnings quality. The Accounting
Review 77: 71-105.
5.
Chung, H. and S. Kallapur. 2003. Client Importance, Non-Audit Services,
and Abnormal Accruals. The Accounting Review 78: 931-955.
6.
Ronen, J. 2002. Post-Enron Reform: Financial Statement Insurance and
GAAP Revisited. Standard Journal of Law, Business and Finance 8: 1.
7.
Sunder, S. Rethinking the Structure of Accounting and Auditing. Working
paper, Yale School of Management. Available at SSRN.
8.
Nelson, M. W., J. A. Elliott, and R. L. Tarpley. 2002. Evidence from
Auditors about Managers’ and Auditors’ Earnings-Management Decisions.
The Accounting Review 77 (Supplement): 175-202
9.
Nelson, M. W., J. A. Elliott, and R. L. Tarpley. 2003. How are earnings
managed? Evidence from Auditors. Accounting Horizons (Supplement):
17-35.
10. 陳惠玲，2006，財報舞弊手法彙整及無效營收之推估，貨幣觀測與信用
評等第58期：111-116.
11. Cohen, J.R., G. Krishnamorthy and A. M. Wright. 2005. Dynamic Data:
Corporate Governance and Auditor’s Evaluation of Accounting Estimates.
Issues in Accounting Education 20 (February): 119-128.
12. Permanent Subcommittee on Investigations of the Committee on
Governmental Affairs, U.S. Senate. 2002. The Role of the Board of
Directors in Enron’s Collapse.
13. 許崇源、林宛瑩、郭學平與林尚志，2003. 複雜交叉持股之典範—力霸
東森集團，貨幣觀測與信用評等(2003年11月)：36-59.
IV. Grading
1.
2.
Assignments. and participation of in-class discussion. (30%)
Presentation of assigned readings. (30%)
3.
Participation and in-class discussion. (40%)
V. Course Schedule
週次
日期
主題
主講人
1
3/1
Agency Problem, Corporate Governance
姜家訓
and Auditing
2
3/8
Case Discussion: Enron
電影欣賞與討論
3
3/15
沙賓法案與內部控制查核
林寶珠會計師
－我國受影響企業之適用情形
KPMG
新公報對財務報表查核之影響與衍生之
林琬琬會計師
查核風險
KPMG
4
3/22
5
3/29
老師請假調課 (6/14 補課)
6
4/12
平衡計分卡
李榮欽協理
KPMG
7
4/19
The Value of Auditing Service
P1, P2
8
4/26
Audit Quality and Auditor Independence
P3, P4, P5
9
5/3
Rethinking the Structure of Auditing
P6, P7
10
5/10
信用評等之功能與發展趨勢
蔡東松總經理
台灣穆迪
11
5/17
衍生性金融商品交易暨會計處理實務
洪櫻芬
中央銀行專員
12
5/24
衍生性金融商品交易暨會計處理實務
洪櫻芬
中央銀行專員
13
5/31
Case Discussion: 博達與陞技
14
6/7
Fraud Detection and Auditor’s Response to
P8, P9, P.10
Earnings Management
15
6/14
Corporate Governance and Auditing
P11, P12, P13