BUSI 4900
Auditing III
Fall 2012
Part 1: Administrative
Professor:
E-Mail:
Office:
Phone:
Class:
Office hours:
Merridee Bujaki, MBA, CA, PhD
merridee_bujaki@carleton.ca
Dunton 1010
(613) 520-2600 ext. 2774
Wednesday 8:35 a.m. to 11:25 a.m. (Loeb Building B146)
Tuesdays and Thursdays 2:00 p.m. – 3:30 p.m.
Or by appointment (Please contact me via e-mail to set up an appointment)
Prerequisites:
Prerequisite: BUSI 3007 (with a grade of C- or better). The School of Business
enforces all prerequisites.
Required Texts:
1. Contemporary Auditing: Real Issues and Cases, Ninth Edition, South-Western, Cengage
Learning, 2013, by Michael C. Knapp
2. The CICA Handbook – Assurance available at www.edu.knotia.ca from on-campus computers
3. Articles posted on CULearn.
4. CA Magazine and CICA articles (as indicated in outline or assigned during course).
Background Reading:
An introductory auditing textbook such as: Auditing An International Approach , Fifth Edition 2010,
by Wally J. Smieliauskas and Kathryn Bewley, McGraw-Hill Ryerson Limited or Auditing: A
Practical Approachm Canadian Edition, 2012, by Moroney, Campbell, Hamilton, and Warren, Wiley
& Sons Canada, Limited
You will also be responsible for material that professor hands out in class, for reading all cases IN
ADVANCE of their discussion in class, as well as the content of the group presentations.
Grading Scheme:
Class Participation
Individual Assurance Assignment
Mid-term Examination
Group Case Presentation
Group Seminar Presentation
Final Exam
10%
10%
20%
10%
20%
30%
100%
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Part II: Academic
Course Objectives:
This course is a third auditing course in a three course package, and seeks to integrate and apply
concepts learned in previous auditing courses to cases and scenarios. This course is a pre-professional
studies course, to prepare students with technical knowledge and pervasive skills required to pursue a
professional designation in accounting and auditing. The objectives of this course are to:
1. Examine the role of the auditing profession and the auditor in society.
2. Develop a reasonable knowledge of select current and emerging issues facing the auditing
profession today.
3. Develop a greater understanding of the general assurance framework, and its underlying
theories.
4. Explore specific topics that build upon general auditing and assurance concepts.
Course Approach:
The approach taken in this course is a form of co-operative learning, based on cases, readings, lectures,
seminars and debates. This approach requires you to prepare assigned readings and cases in advance of
each class, and it requires your active participation and involvement in class discussions, cases,
seminars and debates. The case discussions and seminars are designed to facilitate classroom
interaction, sharing and cooperation.
CULearn:
CULearn will be used in this course. It is critical to use this learning tool on a regular basis. We will be
using CULearn as follows:





to communicate with students on regular basis (e-mail, announcements, front page messages,
etc.)
to post Powerpoint slides to support classroom activities
to post problems or readings
to post group presentation slides
to post notes of an administrative nature or updates to the course outline, if required.
To access CULearn, type in the following URL: https://www.carleton.ca/culearn/
Class Participation (10 percent)
The course will be conducted as a seminar. The success of the course for both students and professor
depends on active thoughtful participation by the members of the class during lectures and case
discussion. Attendance is, of course, an integral part of class participation. The mark each student
receives will reflect the quantity and quality of that student’s contribution to the course. Participation
can be through participation in class discussions, or by contributing relevant articles taken from recent
media publications. In addition to assessing attendance, and the professor’s evaluation of class
participation, students will also be asked to submit a fair self-assessment of their participation. The
grade awarded for class participation will be a composite of these factors. A self-assessment form is
2
attached to this outline as Appendix 1 to facilitate documenting your class contributions in a consistent
format. You are urged to update the self-assessment form on a weekly basis.
Individual assignment (10 percent)
The individual assignment requires you to research and comment on a current issue in assurance.
Individual assignments are graded based on the quality and logical nature of arguments and the clarity
of writing. The assignment question is attached as Appendix 2.
Group Seminar and Case Presentations (20 percent and 10 percent)
The Sprott School of Business encourages group assignments in the school for several reasons. They provide
you with opportunities to develop and enhance interpersonal, communication, leadership, follower-ship and
other group skills. Group assignments are also good for learning integrative skills for putting together a complex
task. You have been assigned two group projects in this course. Before embarking on a specific problem as a
group, it is your responsibility to ensure that the problem is meant to be a group assignment and not an
individual one.
There will be group seminar (20%) and case presentations (10%) in class. Approximately 8 groups will
be formed during the first class and the presentation schedule established at that time.
Each group will be required to research and present a seminar of approximately 50 minutes on one of
the eight seminar topics indicated in the detailed course schedule. In addition to leading the seminar,
each group will be required to prepare and distribute to the class a 3-4 page handout summarizing key
aspects of the seminar, and to make their overheads available to the class via CULearn at least 24 hours
prior to the class session.
Groups doing the assigned cases will be responsible for presenting a brief summary of the facts of the
case to the class, and then leading the class in discussing key issues and questions related to the case.
Case discussions are to be approximately 45 minutes in length. The case presentation will be evaluated
in accordance with the template in Appendix 3.
The seminar and the handouts, and any assigned readings by the group related to the topic, will be
graded together based upon the seminar’s content, interpretation or analysis, presentation style, visual
aids and handouts (see the template in appendix 4). It is MANDATORY the professor be provided
with a one-page outline of your seminar two weeks prior to class. All students are expected to
participate in the group work, though the degree to which each student is involved in the seminar
presentation is a group decision. The seminar material is subject to examination.
Midterm and Final Examinations (15 percent and 30 percent):
There will be one midterm (2 hour) examination (15%) written during regular class time. It may
address any material covered to that point in the course.
The final examination (30%) will be written during the regular exam period. It may address any
material covered during the whole course, including seminar presentations. In order to pass this course
you must obtain a minimum grade on the final exam of 45%.
3
Deferred Examinations:
Deferred examinations will be granted by the University on a case by case basis based upon the written
request of the student, and sufficient supporting documentation to support the student’s claim, such as
death in the family or medical emergency. This request must be made to the Registrar’s Office within
five (5) days of the exam. To be eligible for a deferred final, the student must have received a grade on
the midterm in excess of 45%, a grade in excess of 60% on the group seminar, and a participation mark
over 60%.
Medical certificate
Please note that in all occasions that call for a medical certificate you must use or furnish the
information demanded in the standard university form. http://www2.carleton.ca/registrar/forms/
Other Accommodations
Academic Accommodations for Students with Disabilities
The Paul Menton Centre for Students with Disabilities (PMC) provides services to students with
Learning Disabilities (LD), psychiatric/mental health disabilities, Attention Deficit Hyperactivity
Disorder (ADHD), Autism Spectrum Disorders (ASD), chronic medical conditions, and impairments
in mobility, hearing, and vision. If you have a disability requiring academic accommodations in this
course, please contact PMC at 613-520-6608 or pmc@carleton.ca for a formal evaluation. If you are
already registered with the PMC, contact your PMC coordinator to send me your Letter of
Accommodation at the beginning of the term, and no later than two weeks before the first in-class
scheduled test or exam requiring accommodation (if applicable). After requesting accommodation
from PMC, meet with me to ensure accommodation arrangements are made. Please consult the PMC
website for the deadline to request accommodations for the formally-scheduled exam (if applicable).
Religious observance
Students requesting academic accommodation on the basis of religious observance should make a
formal, written request to their instructors for alternate dates and/or means of satisfying academic
requirements. Such requests should be made during the first two weeks of class, or as soon as possible
after the need for accommodation is known to exist, but no later than two weeks before the compulsory
academic event. Accommodation is to be worked out directly and on an individual basis between the
student and the instructor(s) involved. Instructors will make accommodations in a way that avoids
academic disadvantage to the student. Students or instructors who have questions or want to confirm
accommodation eligibility of a religious event or practice may refer to the Equity Services website for
a list of holy days and Carleton's Academic Accommodation policies, or may contact an Equity
Services Advisor in the Equity Services Department for assistance.
Pregnancy
Pregnant students requiring academic accommodations are encouraged to contact an Equity Advisor in
Equity Services to complete a letter of accommodation. The student must then make an appointment to
discuss her needs with the instructor at least two weeks prior to the first academic event in which it is
anticipated the accommodation will be required.
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No Scents
For the sake of others, and in accordance with university guidelines, students are asked to avoid
wearing strong perfumes, colognes, or other scented products. Many scented products are respiratory
irritants. They are known triggers for asthma, allergies, non-allergic rhinitis and migraines. Even
people that do not have pre-existing health problems can experience irritation to their upper airways,
eye symptoms and general malaise. They can suffer a wide range of health effects such as rashes,
severe headaches, nausea, dizziness and fatigue. Strong scents can cause allergic and asthmatic
reactions that interfere with the health and learning of others.
PROFESSIONAL DEPORTMENT
This course forms an important part of an accounting student’s professional education. As such, it is
expected that student’s behavior will meet professional standards for attendance, attentiveness,
courtesy and respect for others, particularly during other classmates presentations. Unprofessional
behaviour during class, such as talking during a lecture or presentation, will be reflected in the
student’s class participation mark.
Further, as aspiring professionals, accounting students are called to maintain a high standard of ethical
behavior. This requires students to avoid all types of academic dishonesty, including plagiarism,
cheating, and submitting someone else’s work as your own. This also requires students to advise the
professor of any instances of academic dishonesty of which they become aware.
To assist you in fulfilling your ethical responsibilities as a student, the ethical standards for this course
require: group work to be performed exclusively by members of the group and all group members must
contribute their fair share to each assignment; all exams must be the exclusive work of the individual
student. If outside research is performed, sources are to be cited and information discovered via outside
research is to be clearly labeled as such. Cheating or plagiarism will not be tolerated. All infractions
will be dealt with according to University regulations. These regulations are found in the university
calendar.
Plagiarism
The University Senate defines plagiarism in the regulations on instructional offenses as: "to use and
pass off as one's own idea or product work of another without expressly giving credit to another."
Borrowing someone else's answers, unauthorized possession of tests or answers to tests, or possession
of material designed to give a student an unfair advantage in answering exam questions, are also
subject to university policy regarding instructional offences. For more information on Carleton
University's Academic Integrity Policy, consult:
http://www1.carleton.ca/studentaffairs/academic-integrity/
Select Important Dates & Deadlines - Fall Term 2012
September 19, 2012


Last day for registration.
Last day to change courses or sections for fall/winter and fall term courses.
September 30, 2012

Last day to withdraw from fall term and fall/winter courses with a full fee adjustment.
5
October 5, 2012

December examination schedule (fall term final and fall/winter mid-terms) available online.
October 8, 2012

Statutory holiday, University closed.
November 9, 2012

Last day to submit, to the Paul Menton Centre for Students with Disabilities, Formal Examination Accommodation
Forms for December examinations.
December 3 (Monday), 2012



Last day of fall-term classes.
Last day for academic withdrawal from fall term courses
Last day for handing in term work and the last day that can be specified by a course instructor as a due date for
term work for fall term courses.
December 6-19, 2012

Final examinations in fall term courses and mid-term examinations in fall/winter courses may be held.
Examinations are normally held in the day and evening during the Monday to Saturday period .In exceptional
circumstances, it may be necessary to schedule an examination on a Sunday.
6
BUSI4900
Detailed Course Schedule – Fall 2012
Topics and readings for each class are set out below. There may be minor alterations to the schedule during the course, but the schedule provides a general outline. Do
the readings for each class prior to class, and be prepared to discuss them in class. Course time is limited and there is a great deal of interesting material to cover.
Day
Topics
Readings
Case
Deliverable
http://myweb.ncku.edu.tw/~r16001205/w2.3
.pdf
http://www.cica.ca/becoming-aca/documents/item9604.pdf
CICA Handbook Section 5020
CICA Handbook Section 5021
http://www.cica.ca/applying-thestandards/cas/faqs/item63246.html
http://www.frascanada.ca/auditing-andassurance-standards-board/what-we-do/dueprocess/index.aspx
Sept 12, 2012
Introduction
Demand for Audit Services
Competency Map
Association
Authority of Assurance
Standards
Standard Setting Process
Sept 19, 2012
Guest lecturer
Emerging issues in the
public sector
Sept 26, 2012
Other Services
Reviews
Specified procedures
Compilations
Assurance Engagements
CICA Handbook Sections 8100, 8200,
AuG-20, AuG-47
CICA Handbook Section 9100
CICA Handbook Section 9200
CICA Handbook Section 5025
Oct 3, 2012
Control
Control frameworks
Quality Control
Reporting on Controls at
Service Organization
Audit of Internal Control
Guidance on Control in the CICAHB
Collection at www.edu.knotia.ca
CICA Handbook Section CSQC-1;
CAS220, Section 5030
CICA Handbook Section CSAE3416
CICA Handbook Section 5925
Oct 10, 2012
Professional
Practice Issues
Independence
Application of accounting
principles
Diversity
Rules of Professional Conduct
http://www.icao.on.ca/Resources/Membersh
andbook/1011page2635.pdf
CICA Handbook Section 7600
8.5 Zuan Yan
1.11 New Century Financial
Group Case 6: (New
Century)
8.12 Shari’a
Individual assurance
assignment due
Group Case 8: (Shari’a)
7
Day
Topics
Readings
Case
Deliverable
http://www.camagazine.com/archives/printedition/2010/may/features/camagazine3652
5.aspx
Oct 17, 2012
Special Circumstances
First time audit
Going concern
Other information in
documents containing F/S
Auditing in an economic
downturn
CICA Handbook Section CAS510
CICA Handbook Section CAS570
CICA Handbook Section CAS720
http://www.frascanada.ca/canadianauditing-standards/resources/referencematerial/item63400.pdf
1.1 Enron
5.6 American Fuel & Supply
Group Case 2: (Enron)
Group Case 3:
(American Fuel &
Supply)
Oct 24, 2012
Midterm
Oct 31, 2012
Specific
Industries - I
Small business audits;
Not for Profit audits
Reference readings
http://www.ifac.org/sites/default/files/public
ations/files/SMP-ISA-Audit-Guide-Volume1-3e_0.pdf
http://accounting.smartpros.com/x44326.xm
l
http://www.niqca.org/documents/NFP_audit
_handbook.pdf
1.8 Crazy Eddie
3.3 United Way of America
Group Seminar 4 &
Handouts: Small
Business
Group Case 1: (Crazy
Eddie)
Group Seminar 6 &
Handouts: Not for
Profits
Nov 7, 2012
Specific
Industries - II
Investigative/forensic audits;
Environmental audits
Reference readings
http://www.cica.ca/focus-on-practiceareas/forensic-accounting/item61477.pdf
http://www.environmentalauditing.org/Portals/0/about_env_audit.pdf
8.14 Tae Kwang Vina
Group Seminar 7 &
Handouts: Investigative/
forensic audits
Group Seminar 8 &
Handouts:
Environmental audits
Group Case 6: (Tae
Kwang Vina)
Nov 14, 2012
Services for Publicly traded
Reference readings
8.1 Livent, Inc.
Group Seminar 1 &
4.6 Arvel Smart, Accounting
Major
6.3 Hamilton Wong, In-Charge
Accountant
8
Day
Topics
Readings
Specific
Industries - III
companies;
Public sector audits
CICA Handbook Sections 7050, 7110,
7115, 7200, 7500, AuG-6, AuG-16
CICA Handbook Sections PS5000, PS5300,
PS5400, PS6410, PS6420
Nov 21, 2012
Specific
Industries - IV
Pension Audits and Reliance
on specialists
Operational/Internal audits
Reference readings
CICA Handbook Section CAS620
CICA Handbook Section CAS610
Nov 28, 2012
Professional
Issues
Emerging and Professional
Issues in Assurance
Final Exam
Date to be
Announced
Dec 6 -19,
2012
All inclusive
Case
Deliverable
Handouts: Publicly
traded companies
Group Seminar 2 &
Handouts: Public Sector
Audits
Group Case 4: (Livent)
1.3 Just for FEET, Inc..
Group Seminar 3 &
Handouts: Pension
audits;
Group Seminar 5 &
Handouts: Operational
audits
Group Case 7: (Livent)
7.2 Sarah Russell, Staff
Accountant
7.3 Bud Carriker, Audit Senior
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Appendix 1
Individual Class Participation Assessment
Name:_____________________________
Week
Attendance
Participation
in Class
Discussion or
Debates
Submission
of Articles
Participation
during Case
Presentation
by other
group
Participation
during own
group
Discussions
or Meetings
Comments
1
2
3
4
5
6
7
8
9
10
11
12
Identify strengths in terms of your class participation:
Identify areas for improvement:
Provide a fair assessment of your overall class participation:
/10
10
Appendix 2
Individual Assurance Assignment
Due at the start of class, Wednesday October 10. 2012
Propose a new assurance service for public accountants. Describe the service (including who the
parties to the assurance engagement would be and the subject matter to be examined) and show how
the service could be provided under Handbook Section 5025, including assessing:
a.
What would be necessary to ensure the general and performance standards can be met?
b.
What criteria would be used?
c.
Whether an attest or direct reporting engagement would be most appropriate?
d.
Whether a high (audit) or moderate (review) level of assurance is likely to be appropriate?
Required:
Write a thoughtful proposal that demonstrates your understanding of Handbook Section 5025. If you
rely upon outside sources, it is essential that you appropriately cite these sources.
Your submission will be graded based on its clarity of expression, presentation of reasoned arguments,
persuasiveness, and conformance with appropriate spelling, grammatical, and citation conventions.
Your submission must be typed and must be limited to a maximum of 5 double-spaced, typed pages in
length, excluding any references.
11
Appendix 3
Case Presentation Evaluation
Presenting Group:______________________________________________
Case:_________________________________________________
Factor
Case Overview
•
completeness
•
focus on key issues
•
demonstrated understanding
Analysis/ Interpretation/
Conclusions
•
analysis vs mere description
•
critical and knowledgeable
interpretations
•
Canadianization of standards
•
connection to course
•
conclusion
Presentation/Style
•
clarity of ideas
•
use of examples when
appropriate
•
speaking style
•
time management
•
able to engage audience
•
professionalism
•
creativity
Visual aids
•
appropriate use of
overheads/slides/board
•
clarity
•
quality of visual aids
•
grammar & spelling
Class involvement
•
encourage active participation
by class
•
pose questions to class
•
elicit input from the class
•
incorporate class comments in
subsequent discussions
•
manage class discussions
Grade
Comments
/10
/10
/10
/5
/15
Total
/50
Appendix 4
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Seminar Presentation Evaluation
Presenting Group:______________________________________________
Seminar Topic:_________________________________________________
Factor
Grade
Comments
Research/Content
 completeness
 in depth research
 demonstrated understanding
/25
Analysis/ Interpretation/Examples
Conclusions
 analysis vs mere description
 critical and knowledgeable
interpretations
 appropriate examples provided
 connection to course
 conclusion
Presentation/Style/Management
 clarity of ideas
 use of examples
 speaking style
 time management
 able to engage audience
 professionalism
 met deadlines
Visual aids
 appropriate use of
overheads/slides, etc.
 clarity
 quality of visual aids
 grammar & spelling
Handouts
 provided
 well-organized
 address key points
 grammar & spelling
 references & citations
Total
/25
/15
/15
/20
/100
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