UNIVERSITY OF SOUTHERN CALIFORNIA
ACCT 473-FINANCIAL STATEMENT AUDITING
SPRING 2012
PROFESSOR ROSE LAYTON
GENERAL INFORMATION
Faculty:
Professor Rose Layton
Office Location:
ACC 112
Office Phone:
213/740-5022
E-mail Address:
rlayton@marshall.usc.edu
Office Hours:
T TH 2:00-4:00pm; IA M 4- 5:50 pm and by appointment.
USC Emergencies:
213/740-4321
USC Emergency Information
Line:
213/740-9233
USC Information:
213/740-2311 and 91.5 KUSC FM Radio
Course Section:
14136D
Course Prerequisites:
ACCT 371b, 373,
Co-Requisites:
None
Required Materials:
Select Readings – referenced in syllabus;
AICPA. Codification of Statements on Auditing Standards;
PCAOB standards, (Available on line through the AICPA
or PCAOB website).
Read a business periodical
COURSE OBJECTIVES AND DESCRIPTION
Audit issues will be discussed from the perspectives of management and other users of
the financial statements, as well as, the external auditor. The objectives of this course are
for you:
1. To comprehend our role as audit professionals through understanding the
value our audit services have on our global economy and the importance
integrity and ethical behavior have on our performance of this role.
2. To develop the ability to question and apply critical thinking skills to real
world situations involving risk.
3. To gain an understanding of the business environment that you will be
working in by presenting you with some of the types of conditions, events,
and situations that you will encounter. This will assist you in planning and
executing the audit.
4. To further develop your communications skills. These skills are essential to
your professional development.
5. Finally, I hope to share my enthusiasm and excitement for our profession.
Our profession is continually evolving and developing. Our training allows us
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to make career choices that we may never have dreamed. The learning never
stops, nor does the opportunities.
PERFORMANCE EVALUATION
Your overall grade in this class will be determined by your performance in the following:
Component
Points
Preparation – in-class assignments/
mini- project
50
Midterm
125
Evaluation of Team
20
ACL project
75
Examination
250
Total
520
The grade of W is allowed only if a student withdraws by approved date. The grade of
IN is reserved for highly unusual cases where the student is unable to complete a single
item of the course requirements. All of the sections of ACC 473 will be curved together.
Historically, accounting electives’ mean GPA target is a 3.3. See the attached policies for
further information.
After each exam or project grade is returned, you will have one week to challenge your
grade in writing. After this time, the grades on the exam or project become final.
Exams:
There are two examinations. The format will be multiple choice, fill-in the blank and
short answers. Please see the “Individual Class Topics and Assignment” sheet for specific
dates.
No make-up exams. Each exam must be taken at the time it is given. Once an exam
starts, you will not be permitted to leave the room until the exam is completed.
Class Preparation
I will be giving an in-class group assignment/mini-project on 5 Thursdays. It is your
responsibility to attend class on that day and participate in the project. There are
readings due each class and related preparation in order to perform well on the
project.
All members of the group will receive the same grade, unless a group member does not
participate in the preparation of the projects. If you have a non-participating group
member, please see me to discuss how to remedy the situation. No late in-class
assignments will be accepted.
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ACL Project:
Each group will work on the ACL project. It will be turned in on the final date related to
your section. Please see the “Individual Class Topics and Assignment” for specific
times. You will receive more information on this project as the semester
All members of the group will receive the same grade, unless a group member does not
participate in the preparation of the projects. If you have a non-participating group
member, please see me to discuss how to remedy the situation. No late papers will be
accepted.
Evaluation of Team
You will have an opportunity to evaluate your team members. This evaluation will be
due on the same date as the ACL Project.
ACADEMIC INTEGRITY
Ethics and values are very important in accounting and the world of business, nonprofit
and government organizations. We will consider ethical issues throughout this semester.
Throughout the syllabus, the student's ethical standards are listed. It is expected that each
student follow these expectations. If there is a situation that results in an academic
integrity violation, the Leventhal School of Accounting Student Honor Code will be
followed.
LEVENTHAL SCHOOL OF ACCOUNTING GRADING AND ACADEMIC
STANDARDS
See the attached summary of the most important grading and academic standards of the
Leventhal School of Accounting.
RETENTION OF GRADED PAPERS
I will retain all graded material that has not been returned to the student for one semester.
After that time, I will discard all materials. E-mails will be viewed on-line and deleted at
the end of the semester. No hard copy will be given to the student.
DSP
Any student requesting academic accommodations based on a disability is required to
register with Disability Services and Programs (DSP) each semester. A letter of
verification for approved accommodations can be obtained from DSP. Please be sure the
letter is delivered to me as early in the semester as possible. DSP is located in STU 301
and is open 8:30 a.m. – 5:00 p.m., Monday through Friday. The phone number for DSP
is (213) 740-0776.
SKILL ENHANCEMENT ACTIVITIES
Throughout this course students will be challenged to develop skills that are critical to
professional success. The principal skills and related activities that will be employed in
pursuit of your development during this semester include:
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Communication Skills:
Oral communication skills will be enhanced through active class participation and
presentation of group projects and cases.
Written- Group project and written examinations.
Research Skills:
Cases and the project will require Internet and database research.
Critical Thinking and Reasoning:
Cases and the project will challenge the student’s critical thinking and reasoning skills
through the use of thought provoking questions to actual cases.
Analytical Skills:
Cases and examinations will analyze and evaluate financial information. Some answers
will be subjective.
Ethics:
Class discussions will discuss ethical issues faced by today’s auditors.
Information Technology
Cases and the project will be prepared using word-processing and/or spreadsheet
programs. Research of databases and the Internet will be utilized.
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INDIVIDUAL CLASS TOPICS AND ASSIGNMENTS
Class
T
1
3/6
TH
Discussion
Readings/Assignments
In- Class
Graded
Assignments/
Other Assignments
Audit
introduction and
review
Review information from
Assurance Services
Research
participants
Video:
http://www.journalofaccou
ntancy.com/Multimedia/
go to Integrated Reporting
http://pcaobus.org/Rules/Ru
lemaking/Docket034/Conce
pt_Release.pdf
3/8
2
Integrated
Reporting/
Ethical
Considerations
http://www.environmentall
eader.com/2011/09/12/integ
rated-reporting-frameworkproposed/
In-class graded
Assignment
http://theiirc.org/wpcontent/uploads/2011/09/IR
-Discussion-Paper2011_spreads.pdf
Southwest One Report
http://www.southwestonere
port.com/index.php
3
3/20
Planning the
Audit
AU 150.01-.02; AU
311.01-.28, Appendix; AS
9; AU 315.01-.10 QC
10.27-.33
March 12 -16
Planning the
Audit, continued
Spring Break -Enjoy!!
Audit Risk and
Materiality in
Conducting an
Audit
AU 312.01-.30; AU
334.02-.07; AS8
http://www.journalofaccou
ntancy.com/Issues/2007/Jan
/AssessingAndResponding
ToRisksInAFinancialState
mentAuditPartIi.htm
5
3/22
4
5
3/27
Audit Risk and
Materiality in
Conducting an
Audit, continued
Understanding
the Client’s
Entity and Its
Environment and
Assessing the
Risks of Material
Misstatement
In-class graded
Assignment
Research
Participants
AU 314.01-.33, .102-.116
Appendix A; AS 11; AS 12
http://www.journalofaccou
ntancy.com/Issues/2009/De
c/20091789
http://www.quickmba.com/s
trategy/porter.shtml
http://www.quickmba.com/s
trategy/pest/
3/29
6
3/30 –
Friday
2-4 pm
7
8
4/3
Consideration of
Fraud in a
Financial
Statement Audit/
Ethical
Considerations
AU 316.05-.18,.35-.42, .46.54
AU 317.02, .07-.10
Midterm
Materials covered through
3/29
Evaluating
Internal Control
over Financial
Reporting
AU 314.40-.101; AS5
In-class graded
Assignment
http://www.journalofaccou
ntancy.com/Issues/2003/De
c/APrimerForBrainstormin
gFraudRisks
http://www.journalofaccou
ntancy.com/Issues/2001/De
c/ARoadMapToRiskManag
ement
Video:
http://www.journalofaccou
ntancy.com/Multimedia/
changes to COSO
9
4/5
Evaluating
Internal Control
over Financial
Reporting
(continued)
AU 314.40-.101; AS5
In-class graded
Assignment
http://www.journalofaccou
ntancy.com/Issues/2001/De
c/ARoadMapToRiskManag
ement
6
Interpreting
Sample-Based
Audit Evidence
10
4/10
AU 350
ACL Presentation
Interpreting
Sample-Based
Audit Evidence
(continued)
4/12
11
4/17
4/19
12
13
14
15
4/24
4/26
Analytical
Procedures/
Evidence about
Management
Assertions:
Linking Risks to
Substantive
Tests
AU 329; AU 326, AU
339.03-.17
Audit testing for
the Sales and
Customer Service
Process
AU 331
Completing the
Integrated Audit
AU 312.50-.68, AU 337,
AU 341, AU 333
Examination
Material through 4/19
CPA
CPA Simulation
Final - ACL
11 am – 1 pm
In-class graded
Assignment
http://www.journalofaccou
ntancy.com/Issues/2006/Jul
/AssessingAndResponding
ToRisksInAFinancialState
mentAudit.htm
Examination in
HOH 415
8 am - 5/9 - 8 am
10 am – 5/8 -11 am
12 pm – 5/9 – 2 pm
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The Leventhal School of Accounting adheres strictly to the grading standards of the
University and the Marshall School of Business. Additionally, the Leventhal School of
Accounting has supplemented those standards with certain others. For students'
convenience, and to prevent misunderstanding, these additional standards are
summarized below.
GRADING STANDARDS
The following grades are used: A - excellent; B - good; C - fair; D - minimum passing;
F - failure. The grade of F is awarded for failing work at the end of the semester. The
assignment of minuses and pluses when earned is required.
The grade of W (Withdraw) is assigned if the student officially withdraws after the third
week but before the end of the twelfth week of the semester. No withdrawals will be
permitted after the end of the twelfth week except by student petition to the University's
Committee on Academic Policies and Procedures.
Students may elect to audit courses during the first three weeks of the semester. A
course taken for audit (V) will be assessed at the current tuition rate. A course taken for
audit (V) will not receive credit and will not appear on the USC transcript or grade report.
Under no circumstances will the University allow a change in the registration status of a
course from letter grade or credit to audit (V) or vice versa after the third week of a given
semester.
The grade of IN (Incomplete, i.e., work not completed because of documented illness or
some other emergency occurring after the twelfth week of the semester) is reserved for
those highly unusual cases where, due to circumstances judged fit by the Dean of the
Leventhal School of Accounting, the student is unable to complete a specified single
item of the course requirements by the time final grades are submitted.
IN grades can be removed only by the student completing the missing requirements of
the course to the satisfaction of the instructor.
Marks of IN in courses numbered below 500 must be removed by the end of the
semester following the one in which the mark of IN was assigned. If not removed within
the specified time limit, marks of IN automatically become marks of IX (expired
incomplete), with the exception of thesis and dissertation, and compute in the GPA as an
F. A student may remove the IN only by completing the work not finished as a result of
illness or emergency. It is not possible to remove an incomplete by re-registering for the
course. Previously graded work may not be repeated for credit.
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G.P.A. PREREQUISITES FOR UNDERGRADUATE ACCOUNTING COURSES
The following are grade point average prerequisites for any undergraduate student
enrolled in any accounting course. Individual instructors may not waive these standards:
(1) an average grade of B (3.0) or better in BUAD 250a and BUAD 250b, with no grade
lower than a B-; or (1a) if applicable, transfer students are required to meet an average
grade of B in the two transferred accounting courses and BUAD 305x, with no grade
lower than a B-; and (2) a minimum 2.5 grade point average (based on a scale where
the grade of A=4.0) for all accounting courses completed prior to the semester in which
the course(s) is (are) to be taken.
In computing grade point average prerequisites, BUAD 250ab, BUAD 280/281, BUAD
305 and 302T will be considered accounting courses.
Grades in accounting courses taken at other institutions will not be included in the
computation of the cumulative accounting grade point average.
When a student's cumulative accounting grade point average falls below 2.5, the student
is placed on probation. If a student on probation does not regain a minimum accounting
cumulative GPA of 2.5 after completing the next 12 semester hours in all courses
(including accounting courses) attempted within the University, that student will not be
permitted to continue as an accounting major in the Leventhal School of Accounting.
Exceptions to this policy may be granted only in unusual circumstances by the Academic
Standards Committee of the Leventhal School of Accounting. Decisions of the
Academic Standards Committee are final.
To be removed from probationary status, a student may elect either to take another
accounting course or courses for which prerequisites are met or to repeat an accounting
course or courses in an attempt to earn a higher grade. Regardless of the course of
action taken, all courses completed will be counted in computing the cumulative
accounting grade point average.
The grade of "W" in an accounting course taken while a student is on probation will not
extend probation. The probation period ends at the end of that semester during which
the student completes a cumulative total of 12 semester hours of courses in any
subject(s) at the university. Under no conditions will the student be permitted more than
two successive semesters, including the summer semester, to complete the 12 semester
hours of courses.
Students must attain a minimum 2.5 cumulative accounting grade point average to
graduate with a Bachelor of Science in Accounting degree.
See the USC Catalogue for further restrictions on including grades in repeated classes
in the overall grade point average computation.
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OTHER ACADEMIC STANDARDS
1.
Students enrolled in any class offered by the Leventhal School of Accounting are
expected to uphold and adhere to the standards of academic integrity established
by the Leventhal School of Accounting Student Honor Code. Students are
responsible for obtaining, reading, and understanding the Honor Code System
handbook. Students who are found to have violated the Code will be subject to
disciplinary action as described in the handbook. For more specific information,
please refer to the Student Honor Code System handbook, available in class or
from the receptionist in ACC 101.
2.
The ability of students to write clearly and concisely is a necessary prerequisite to
success in accounting work. Accordingly, students will be required to demonstrate
writing capability in all accounting courses. This may be accomplished primarily
through the inclusion of essay-type questions on course examinations.
3.
No unregistered students are permitted to attend accounting classes regularly.
Leventhal School of Accounting
Important Dates
Spring 2012
First Day of Classes for ACCT courses with session 442
Monday, March 5
Last Day to Add or Drop w/out a “W” for Session 442
Monday, March 12
Spring Break
Monday, March 12 Friday, March 16
Deadline to register for Commencement
Friday, March 23
Last Day to Drop with a “W” for regular session (001)
classes
Friday, April 6
Last Day to Drop ACCT courses, Session 442, with a “W”
Monday, April 9
LSOA Annual Scholarship Dinner
Thursday, April 19
Last Class Meeting for Regular (001) and 442 sessions
Friday, April 27
Final Exams for ACCT courses, Regular (001) and 442
sessions
Wed., May 2 –
Wed., May 9
Commencement
Friday, May 11
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