FREEMAN SCHOOL OF BUSINESS
Auditing
ACCN 4100 & ACCN 7110
Fall 2015
Instructor: Professor Stephen Rowe
Office Phone: 504-865-5064
Office: 506 GW1
E-mail: srowe2@tulane.edu
Office Hours: Tuesday 9:00am -11:00am
Blackboard Site: myTulane.blackboard.com
Class Meeting Day & Time:
Section 1: Tuesday/Thursday, 11:00am–12:15pm
Section 2: Tuesday/Thursday, 2:00pm – 3:15pm
Section 3: Tuesday/Thursday, 3:30pm – 4:45pm
Class Location:
Room 2111, GW2
Room 2111, GW2
Room 2111, GW2
COURSE DESCRIPTION:
This course examines the professional auditing function, particularly emphasizing public accounting.
COURSE GOALS:
This course is designed to familiarize students with the public company auditing environment and
introduce them to the audit process. We will discuss such concepts as the need for financial statement
audits, the current audit regulatory environment, audit reports, audit evidence, audit planning procedures,
inherent risk, internal control, analytical procedures, statistical sampling, tests of controls, and substantive
audit tests.
STUDENT LEARNING OBJECTIVES:
At the conclusion of this course, students should:
 Appreciate the audit environment and the role of the auditor.
 Understand the nature and purpose of auditing standards.
 Understand the financial statement audit process and the conceptual frameworks auditors use
when making audit judgments.
Further, students should be able to:
 Evaluate different types of audit evidence and assess inherent and control risk in the context of a
financial statement audit.
 Design and conduct appropriate tests of managerial assertions about transactions and events,
account balances, and other disclosures.
1
COURSE MATERIALS

Textbook (AEB): Auditing & Assurance Services – An Integrated Approach, 15th Edition, by
Arens, Elder, and Beasley; Pearson Prentice Hall, 2014. ISBN-10:0-13-312563-7; ISBN-13:9780-13-312563-4 a

Case: Integrated Audit Practice Case, 6th Edition, by Kerr, Elder, and Arens; Armond Dalton
Publishers, Inc. 2011. ISBN: 978-0-912503-56-1

Outside Readings and Assignments: Most of the readings are available electronically at the
Tulane Library (http://www.library.tulane.edu) or on the course website. Auditing Standards are
available on the PCAOB or AICPA websites. Assignments will either be handed out in class or
posted on the course website.

Gleim Online Assessment: To obtain access to the Gleim Professor-Led Assessment Quiz for
CPA AUD and allow your instructor to track your progress, you must click the link or copy/paste
the URL into a web browser. Note that you MUST use one of these links to purchase your
materials because they indicate to Gleim which virtual class to enroll you in. If you order via any
other means (e.g., the Gleim website), you will not receive credit for your work.
https://www.gleim.com/?promoID=ASSESS-TULANE-FALL(15)-ACCN-7110 This link allows
you to purchase only the Gleim Professor-Led Assessment Quiz for CPA AUD, which is required
for this class. Clicking the link will send you to the Gleim website, where you must create your
account. Then, you will be taken to the shopping cart with the correct item listed at $0.00.
Complete the check out process following the on-screen instructions.
GRADING
Your performance in this course will be assessed on the following components:
Exam 1
Exam 2
Exam 3
Final Exam
Audit Practice Case
Assurance Project
Homework & Quizzes
Professionalism & Participation
10%
10%
10%
25%
15%
15%
5%
10%
100%
Grades will be assigned using the plus/minus system and will be based on a combination of absolute
achievement and relative performance. In line with other courses at the Freeman School of Business, the
maximum Class-GPA is expected be in the range of 3.000 to 3.333.
Grading of subjective aspects of the course (assignment/questions with no objectively correct response)
starts with the assumption that the response is average (generally equivalent to about an 85%) and is then
adjusted higher or lower based on the graders evaluation of the student’s response in line with the
specified criteria.
a
You are responsible for the content and questions contained in the US edition of this textbook. If you chose to
purchase a different edition of the textbook it is your responsibility to know and compensate for any differences in
content.
2
Exams
The exams are an opportunity to assess the progress that you are making in this course. The exams will
test your conceptual and technical knowledge as well as your ability to effectively communicate and
apply acquired knowledge. The format will include multiple choice questions, short answer questions, and
problems. Exams will cover material from the readings, text and other course materials, lectures, and
class discussions. The exams are designed to test your understanding of the material covered since the
last exam; however, because the course is cumulative a strong understanding of material from earlier
exams is essential.
After each exam I will review the exams in class; however, I will retain the exams. Students may review
the full exam and all prior exams during office hours.
Final Exam
The format of the final exam will be similar to that of the earlier exams. The final exam will cover all
material in the class with an emphasis on material covered since the previous exam.
Absence from Exams
Absence from any exam will result in a score of zero, unless you have a university-approved excuse for
your absence. If an exam is missed for an acceptable reason, then the weight of the missed exam will be
allocated to the final exam (standardized).
Audit Practice Case
The Audit Practice Case (APC) is included in the course to provide you with an opportunity to apply the
various concepts we discussed in the lectures. This case is comprised of 10 assignments that you will
complete, in groups of 3 students, throughout the course of the semester. Each assignment will involve
practical applications of material we covered in the preceding lectures. These assignments will be graded
on the basis of (1) neatness, (2) completeness, (3) accuracy, and (4) reasonableness of judgments.
Assignments are due on the date indicated on the accompanying Class Schedule. Although the case is to
be completed in groups, I expect all members to contribute equally and be familiar with the content of
each case; to this end case material will routinely be included on exams and individuals will have the
opportunity to rate the contribution of fellow group members as part of each exam. Group members who
are rated by their fellow group members as failing to contribute to the case may have their individual case
grade adjusted downward.
Homework and Quizzes
In order to encourage additional practice with certain aspects of the course I will periodically assign
homework assignments to be handed in at the beginning of class, or quizzes that may be administered in
class or online. These assignments will be designed to reiterate certain important concepts in the course or
prompt you to apply concepts to different situations.
Professionalism and Participation:
Professionalism is a broad concept that seeks to measure the extent to which you behave professionally in
all aspects of the class. Professional behavior in this class includes but is not limited to the following:
Coming to class prepared and contributing to the discussion
To improve your understanding of the relevant topics it is important that you attend class. I will take
attendance at each class either through the completion of in-class quizzes or activities or a sign-in roster.
You may only sign yourself in; signing in another student is dishonest and inappropriate. If you come in
3
late and miss the roster or quiz talk to me after class and I will ensure you are not fully penalized for an
absence. It is your responsibility to sign-in each day, and out of fairness to other students I cannot give
credit for attending class unless you sign-in.
You will learn the material best if you come to class having read the assignment for the day and are
prepared to ask questions and engage in discussion. Periodically I will administer an in-class quiz or
assign homework to gauge the extent of class preparedness.
Participating in class by answering and asking questions improves the learning environment by
demonstrating what information is already understood and what information needs more elaboration.
Asking relevant questions that demonstrate that you prepared for class and thought through the material
will be reflected very positively in your participation grade. Active participation also makes the time in
class more enjoyable. I may occasionally give group exercises in class and your performance on these
exercises will influence your participation grade. Participation also includes completion of the course
evaluation at the end of the semester.
Professionalism
To foster a more professional learning environment and to develop habits that lead to success in business,
all participants in class must engage in professional behavior. Broadly speaking I hold you to the same
level of professional conduct to which I held my staff in public practice, this includes:
 Taking responsibility for individual actions (including your mistakes).
 Accepting and incorporating feedback in a professional manner
 Attending each class session, including arriving promptly and leaving at the designated time. If you
must miss class, show up late or leave early please let me know ahead of time.
 Being respectful of everyone else in the class by refraining from activities that could distract the rest of
the class (in other words, turn off your cell phone and absolutely no text-messaging during class).
Laptops are only allowed during specified group activities.
 Understanding that disagreements regarding coursework or grading should be communicated in a
professional manner.
 Arriving on time and prepared for meetings (whether they are with me or with fellow classmates).
 Actions in line with other Freeman Business School norms and expectations as specified in the student
handbook (e.g. attire, food, decorum, etc.).
Project and Presentation:
Over the course of the semester you will develop an assurance plan based on concepts learned in class.
This project will culminate in a formal written plan that you present to the professor toward the end of the
semester. Additional details about this assignment will be provided in class.
Extra Credit
Periodically I may provide the opportunity for the class to earn extra credit. Extra credit is generally
offered to provide students with an opportunity and incentive to better understand the material. Out of
fairness, all students will have the chance to participate in any extra credit; I will not give extra credit
opportunities to individual students.
4
GRADING ISSUES
Re--grading Requests
Questions regarding the grading of your exams or assignments must be brought to my attention, in
writing, by the subsequent class period. Objections filed after this time will not be entertained. Because
the grading of answers to subjective questions may involve consideration of answers to other questions,
objections to grading of subjective questions will involve re-grading the entire exam or assignment.
Depending on what aspects of your grades are altered, re-grading can cause your grades to increase,
decrease or remain unchanged.
Late Submission of Projects and Assignments
Great thought has been placed on the timing of each assignment to ensure the greatest opportunity to learn
and understand the course content. Unless you obtain prior permission from me, assignments submitted
after the due date will not be graded and will be awarded zero points.
EMAIL POLICY
Please send all class related emails to my school email (srowe2@tulane.edu). Given the volume of emails
I receive during the semester (remember, I teach three sections this semester!), it would be most helpful if
you could include, in the subject line, your course number, section, and a brief indication of the issue you
are mailing about (e.g. ACCN 7110:01- Homework 1). I should get back to you within 24 hours during
the week (I typically do not check email on weekends). On the rare occasion that I don’t get back to you
within 24 hours, please send me a reminder email. Include the term “reminder” in the subject line (this
will draw my attention!), restate your question/concern, and I will get back to you promptly.
ABSENCE FROM CLASS
Attendance in class is important to ensure your comprehension of the material and thus I expect students
to do everything they can to minimize absence from class.
Absence for Personal Reasons
Absence from class for personal reasons falls under university absence policy, and to be excused from
class for any personal reason requires a university approved absence.
Absence for Professional Reasons:
Students who must miss class because of emergent professional commitments (e.g. interviews) must
notify me at least one week ahead of the absence and receive written approval. Approval of absences is at
my discretion and is based on the nature of the absence, prior attendance record, and demonstrated ability
to catch-up on missed material. If approved you may hand in the make-up problems listed in the syllabus
in lieu of participating in class. The assignment must be handed-in the class immediately following the
absence and you must attach support documenting the reason for the absence (e.g. letter or email
invitation for an interview from the firm). In general, absence due to ongoing employment (including
internships) is not considered emergent and will not be approved.
Absence for Other Reasons:
Absences for other reasons include any absence not excused in accordance with the University absence
policy or excused for professional reasons. To encourage you to review the material covered in class on
your own, you may hand in the make-up problems listed in the syllabus for the day that you miss and
receive partial credit for participating in class. To receive any credit, the assignment must be handed-in
(or otherwise provided to me) by the beginning of the class immediately following the absence.
5
UNIVERSITY STATEMENTS AND POLICIES
Statement about Academic Integrity
This class will be conducted in full accordance with Tulane’s policies about academic integrity including,
but not limited to, the Code of Academic Integrity and the Code of Student Conduct. These can be found
at: http://tulane.edu/college/code.cfm and http://tulane.edu/studentaffairs/conduct/code.cfm
Freeman Educational Norms and Expectations
This class will be conducted in full accordance with Freeman’s Educational Norms and Expectations.
Please reread the Norms and Expectations, which can be found at
http://www.freeman.tulane.edu/students/bsm/pdf/Expected%20Behavioral%20Norms.pdf
Learning Disabilities:
Under the Americans with Disability Act and the Section 504 of the Rehabilitation Act, if you have a
disability, you may have the right to an accommodation; however, the right is contingent upon you taking
certain steps. You should review the steps that you need to take, as well as Tulane’s policy concerning
accommodations at http://tulane.edu/studentaffairs/disability/accommodations.cfm
Any student with a disability, in need of course or examination accommodation, should request an
accommodation through the University’s Office of Disability Services (ODS) located in the Mechanical
Engineering Building. At the beginning of the semester, please provide me with a copy of your approved
ODS accommodation form. I am committed to working with ODS to ensure that I provide you with all
approved accommodations. If you do not deliver the approved accommodation form to me, I will not
know that ODS approved your accommodation and I will have no basis to provide those
accommodations.
For students with extended time accommodation, they are to take exams at the Freeman School. Please
take your exam request form directly, at least four business days in advance, to Phylicia Richardson in
Suite 200. Once Ms. Richardson receives your request form she will schedule your exam. You must begin
your exam when the class normally would begin. For all other accommodations, please take your form to
ODS and they will schedule your exam.
TENTATIVE COURSE SCHEDULE
Unless noted, you should study the readings before class days indicated. You should make a diligent
attempt to understand all the concepts and issues in the assigned readings. Any changes to the course
schedule will be announced in class and major changes will be posted on the course web site. You are
responsible for learning of these changes.
Class Schedule -Tuesday/Thursday
Date
Day
#
8/18/15
Tuesday
1
Topic Area
Reading
(Italics = Optional)
8/20/15 Thursday 2
Introduction to Assurance
Services
Demand for Audit
8/25/15
Auditing Profession
Tuesday
3
6
Hand In
(Italics = Make-up)
AEB Chapter 1
Klein (2001)
Akerlof (1970)
1-16, 1-18
Summarize Reading
AEB Chapter 2
AU: 110, 150
2-19, 2-21
8/27/15 Thursday 4
Audit Responsibilities and
Objectives
AEB Chapter 6
AU: 110
AS 15 par. 3-9
Assessment quiz (ch. 2)
6-27, 6-28, 6-32
9/1/15
Tuesday
Audit Evidence
AEB Chapter 7
AS 15
AU 318
Assessment quiz (ch. 6)
7-28, 7-29, 7-32, 7-33,
7-34
9/3/15
Thursday 6
Planning & Analytical
Procedures
AEB Chapter 8
AS 9
Assessment quiz (ch. 7)
8-28, 8-31, 8-32, 8-34
AEB Chapter 9
Eilifsen and Messier
(2015)
AS 8, 12
AU 312
AEB Chapter 10
AS 5, 13 (par 16-35)
AU 318 (par .23 - .49)
9-32, 9-35
Summarize Reading
5
9/8/15 Tuesday 7
9/10/15 Thursday 8
Exam 1
Materiality and Risk
9/15/15
Internal Controls
Tuesday
9
Practice Case #2
10-35, 10-39, 10-40
9/17/15 Thursday 10
Audit Programs
AEB Chapter 13
AS 15 (Review)
Practice Case #3
13-26, 13-27, 13-30
9/22/15
Audit Production
Pentland (1993)
Allen et al. (2006)
Summarize Reading
9/24/15 Thursday 12
Audit Reports
AEB Chapter 3
PCAOB Release No.
2013-005 (p. 1-9, 13-21,
Appendix 1)
AU 410, 411, 504, 508,
530, 532
AS 6
Practice Case #4
3-28, 3-30
9/29/15 Tuesday 13
10/1/15 Thursday 14
Exam 2
Sales and Collection Cycle:
Controls and Substantive tests
AEB Chapter 14
14-26, 14-29, 14-31
10/6/15
Tuesday 15
Sales and Collection Cycle:
Audit Sampling
AEB Chapter 15
AEB Chapter 17
AU 350
Practice Case #5
15-22, 15-13, 15-28
17-25, 17-27
10/8/15 Thursday 16
Sales and Collection Cycle:
Completing the tests
AEB Chapter 16
AU 330
16-24, 16-28
10/13/15 Tuesday 17
Audit of Cash
AEB Chapter 23
Practice Case #6
23-24, 23-26
10/15/15 Thursday
10/20/15 Tuesday 18
10/22/15 Thursday 19
Fall Break (No class)
Acquisition and Payment Cycle
Inventory and Warehousing
Cycle
AEB Chapter 18
AEB Chapter 21
18-21, 18-23, 18-25
Practice Case #8
21-24, 21-25, 21-32
Tuesday 11
7
10/27/15 Tuesday 20
Completing the Audit
10/29/15 Thursday 21
11/3/15 Tuesday 22
Exam 3
Ethics
11/5/15 Thursday 23
Fraud
11/10/15 Tuesday 24
Audit Responsibilities and
Audit Quality
11/12/15 Thursday 25
Legal Liability
11/17/15
11/19/15
11/24/15
11/26/15
12/1/15
12/3/15
Special Topics in Auditing
Project presentations (No class)
Final review of material
Thanksgiving Break (No class)
Final Exam
Final Exam
Tuesday 26
Thursday 27
Tuesday 28
Thursday
Tuesday
Thursday
8
AEB Chapter 24
AU 333, 337, 341, 390,
550, 551, 558; 560, 561
AS 16
Practice Case #9
24-27, 24-28, 24-29
AEB Chapter 4
Bazerman (1997)
ET: 50, 90, 101, 102,
201-203, 301-302, 501503
AEB Chapter 11
Knapp and Knapp
(2013)
AU 316
AS 13 (par 12-15)
Dechow and Skinner
(2000)
Francis (2004)
AEB Chapter 5
Brandon et al. (2005)
Kadous (2000)
Securities and Exchange
Act of 1933 & 1934
Practice Case #10
4-1, 4-4, 4-22
TBA
Assessment quiz (ch. 4)
11-23, 11-27, 11-30
Summarize Reading
5-17, 5-18, 5-24