BROCK UNIVERSITY
FACULTY OF BUSINESS
DEPARTMENT OF ACCOUNTING AND FINANCE
MBAB 5P30, Fall 2015
Auditing I
Instructor: Ian L. Adamson
COURSE OBJECTIVES:
This is the first course in examining auditing and the auditing profession. The objective is to
introduce students to the theory of auditing and to its application in the business world from the
point of view of the external auditor. The course begins with an examination of the principles and
theory that underlie the practice of auditing, and will then review the ethical and legal
responsibilities of auditors. The preliminary audit plan is then discussed along with the assessment
of the business, control, and fraud risks encountered in an audit. The central concept of gathering
audit evidence, control testing and audit sampling are then discussed. The final section of the course
covers the Revenue cycle.
TEXTS:
Wally J. Smieliauskas & Katherine Bewley Auditing: An International Approach, sixth edition,
McGraw-Hill, Ryerson, 2013, ISBN 978-0-07-105141-5.
CLASS TIMES:
Section 1: Thursday, 1100 - 1400, TA 260
Section 2: Friday, 1400 - 1700, TA 204
DISTRIBUTIONS OF GRADES:
In-class quizzes (multiple choice)
Mid-term examination s
Final quiz (multiple choice)
Final examination (multiple choice – cumulative)
10 - 20%
20 - 40%
0 - 10%
30 - 50%
You have to make the decision as to how you want your marks allocated. In the last class I will
distribute the weighting form on which you may finalize your weighting scheme. Weights chosen must
fall within the ranges above and add to 100%. You have to sign this form. E-mail or any other form of
communication is not a valid alternative. If you do not make an allocation, the default is as follows.
In-class quizzes (multiple choice)
Mid-term examinations
Final quiz (multiple choice)
Final examination (multiple choice – cumulative)
15%
40%
5%
40%
Your mark allocation must be handed in during the last week of classes.
Note: Anyone not having an overall passing grade prior to the final exam or anyone not passing the
final exam will not be awarded a passing grade.
COURSE SCHEDULING:
The following are approximate timings for each week of the course.
Week 1
Chapter 1
Chapter 2
Introduction
Auditors’ Professional Roles and Responsibilities
Week 2
Chapter 3
Auditors’ Ethical and Legal Responsibilities
Week 3
Chapter 3
Chapter 4
Chapter 5
Auditors’ Ethical and Legal Responsibilities
Reports on Audited Financial Statements
Preliminary Audit Planning
Week 4
Chapter 5
Preliminary Audit Planning
Chapter 5
Mid Term 1
Preliminary Audit Planning
Week 6
Chapter 6
Chapter 8
Assessing Risks and Internal Control
Audit Evidence and Assurance
Week 7
Chapter 8
Chapter 9
Audit Evidence and Assurance
Control Assessment and Testing
Week 8
Chapter 9
Control Assessment and Testing
Week 9
Chapter 9
Chapter 10
Control Assessment and Testing
Audit Sampling
Chapter 11
Mid Term 2
Revenue Cycle
Week 11
Chapter 11
Accounts Receivable
Week 12
Chapter 7
Fraud Risk Assessment
Week 5
Week 10
Schedule of Quizzes and Mid-term Exams
Quizzes
Mid-Term
Date
5% each
Week Month
Class
1
Sept
10 & 11
2
17 & 18
3
24 & 25
4
Oct
5
1&2
6
22 & 23
7
29 & 30
Nov
Mid 1
Reading Week
Q3
5&6
9
12 & 13
10
19 & 20
11
26 & 27
12
Q2
8&9
15 & 16
8
Q1
Dec
3&4
Dec
11
Q4
Mid 2
Q5
Final Exam @ 8 PM, TA
307