Virginia Polytechnic Institute and State University
Pamplin College of Business
Syllabus for ACIS 4414 (Fall 2014)
Financial Statement Auditing
Instructor: Dr. Sarah Stein
Office: 3102 Pamplin Hall
Email: sestein@vt.edu
Office hours: T/Th 3:30–4:30pm, W 3:00–4:30pm, and by appointment
Class time:
T/Th 9:30–10:45am in DER 1084 (Section 80156)
T/Th 12:30–1:45pm in DER 1076 (Section 80155)
T/Th 2:00–3:15pm in DER 1076 (Section 80154)
Website:
Scholar www.scholar.vt.edu
Required Texts:
1) Textbook: Auditing and Assurance Services 15th edition Pearson, by Alvin A. Arens, Randal
J. Elder, Mark Beasley (same book used in ACIS 3414)
2) Additional custom case book – available at the bookstore
3) iClicker/iClicker2 – can be purchased at the bookstore
Prerequisite:
ACIS 3414
Computer Resources:
Students are expected to have access to a personal computer system, including a printer, which
meets the minimum configuration for the Pamplin College of Business. For specific student
computer requirements, see the Pamplin College of Business Student Computer Purchase Policy
at http://www.cob.vt.edu/compute/ .
Course Objectives: This course is designed to provide you with an understanding of professional
auditing as practiced in the United States. Our discussions will focus on various aspects of the
auditing profession. Successful completion of this course will provide you with a basic
understanding of:
 The auditor’s consideration of financial statement cycles,
 The evaluation of audit evidence, and
 The issues related to completing an audit.
Honor Code: Each student is expected to behave in a manner that brings honor to himself or
herself, to the student body, and to the university community. In keeping with this expectation,
students should be familiar with requirements of the Virginia Tech Honor System Constitution.
All class assignments are expected to be your original work. You are not permitted to use solutions
manuals, solutions from prior semester materials, or another student’s materials in completing
assignments. All university policies regarding cheating, plagiarism, falsification, nonattendance,
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and illnesses will be strictly applied and enforced in this course. All aspects of your coursework
for this class are covered by Virginia Tech’s Honor System. Any assignment submitted to the
instructor will be considered graded work unless otherwise noted. Please refer to your university
catalog for these policies.
Special Accommodations: If you are a student with special needs or circumstances, if you have
emergency medical information to share with me, or if you need special arrangements in case the
building must be evacuated, please make an appointment with me during my office hours within
the first week of class to ensure adequate time to make the necessary arrangements.
Attendance: Students are expected to attend classes as scheduled. Should you miss a class, it is
your responsibility to get any missed assignments, class material, or announcements from a
classmate. If you must miss class for more than two days for any reason, you need to discuss your
individual situation with someone in the Pamplin College of Business Undergraduate Office in
Pamplin 1046.
Preparation and Participation: This course requires a substantial out-of-class time commitment.
Reading the assigned materials, completing cases, and thinking critically about your reading and
work will require much of you. Your active participation is encouraged and expected. Not only
will you personally benefit from such participation, but your classmates will benefit as well.
Quizzes: I will give ten reading quizzes on Scholar throughout the semester. These quizzes will
assess your comprehension of the assigned readings prior to class on each topic. [I recommend
reading each chapter thoroughly and creating your own outline/study guide of the material as you
read. This information will come in handy when it comes time to study for the midterm and final
exams.] Each quiz will be worth 5 points for a total of 50 points for the semester. You must
complete the quiz individually prior to 9:30am on the following class dates:
August 28th (Chapter 2)
September 9th (Chapter 7)
September 16th (Chapters 14 & 16)
September 23rd (Sampling handout##)
October 2nd (Chapter 11)
October 9th (Chapter 23)
October 28th (Chapters 18 & 19)
November 6th (Chapter 24)
November 13th (Chapter 3)
December 2nd (Chapter 5)
##
To obtain a copy of this sampling handout, you need to visit the library home page (http://www.lib.vt.edu)
and click on the Course Reserves tab. Then type in ‘Stein, Sarah’ to bring up my reserves list. The password
(if needed) will be my last name in all lowercase letters.
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Clicker Points: I will be using clickers throughout the course as a learning tool as well as a method
for assigning points based on student attendance and effort. Please purchase an iClicker and
register it before class on September 2nd. Specific instructions about registering your clicker are
provided on Scholar (iClicker tab). From September 2nd through December 9th, I will assign 2
points for each class period (25 classes, excluding exam dates). I reserve the right to allocate the
points for each class using some combination of attendance and/or correct answers to questions
asked during class.
Exams: Exams may consist of multiple choice, other objective, and/or short answer questions. I
will give two exams during the semester, one midterm exam and one final exam. The midterm
exam will be given during the scheduled class period, as noted in the Class Schedule. The final
will be given according to the university final exam schedule. You should make certain that you
will be in class on these dates. No makeup exams will be given. If circumstances make it
impossible for you to take a scheduled exam, it is your responsibility to contact me as soon as
possible and to provide appropriate documentation to validate your absence. A missed exam will
count as zero points, unless in my judgment the circumstances were compelling enough to warrant
your absence. Use or possession of prior semester exams will be treated as a violation of the Honor
Code.
If you have an excuse for missing the scheduled date for the final exam, then you need to make
alternative arrangements with me by the date of the midterm exam.
Cases: I have scheduled various case assignments for this semester. The objective of the cases is
to illustrate audit issues relevant to topics covered in class. We will discuss the cases in class, so
you will need to prepare for the discussion by reading the case and completing the case
requirements prior to the class date on which the case is listed on the Class Schedule. Therefore,
your case responses must be submitted electronically on Scholar using the Assignments tab before
9:30am on the date of the scheduled class. Late cases will receive a grade of zero. You will
prepare your typed responses to the various cases using the template provided on Scholar – you
may not prepare handwritten answers. Cases 1 through 5 must be completed individually, while
Cases 6 through 10 may be completed individually or in groups of two students. During class, I
will provide more guidance about the specific requirements for each case.
The purpose of the cases is for you to think critically about each topic outside of class so that we
can have a lively discussion about the case during class. Oftentimes, the cases and related questions
include “gray” areas, which suggest that many questions do not have one specific “right” answer.
Please take the time to think about the case and write a well-reasoned response. Differences in
student responses will result in more interesting class discussions!
Case 3 requires your participation in an experiment outside of class – more details will be provided
in class. To compensation for this time spent outside of class, I have cancelled class on Thursday,
October 23rd as noted on the Class Schedule.
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Grade Appeals/Corrections: If an error was made in grading an assignment or exam, or an error
was made in posting a grade, you must notify me in writing within one week following the date
that the assignment/exam is handed back and/or reviewed in class. After that time, all grades
become final.
Grading: These points are approximate and represent the relative portion of your final grade
contributed by each component of course work. The actual points may vary slightly. Final letter
grades will be assigned based on the total points earned. Points will not be rounded.
Points of
Final Grade
Grading
Scale
Points
Clicker Points
50 points
A
465 – 500
Quizzes
50 points
A-
450 – 464
Midterm Exam
125 points
B+
435 – 449
Final Exam
125 points
B
415 – 434
Cases
150 points
B-
400 – 414
Total points
500 points
C+
385 – 399
C
365 – 384
C-
350 – 364
D+
335 – 349
D
315 – 334
D-
300 – 314
F
< 300
If you wish to earn an “A” in this class, you need to spend a minimum of 5-6 hours per week
studying outside of class (2-3 hrs/wk reading/comprehending the assigned materials and
completing the quizzes and 2-4 hrs/week completing cases). This time, in and of itself, will not
guarantee a good grade since your studying must be effective and you also must ask questions and
seek help when you do not fully understand the material.
Additional Instructor Policies:
1. I take the VT Honor Code very seriously. Please do not give me a reason to enforce it.
2. If you have attended class regularly, I will spend the time needed to help you understand
the material during office hours. I will not go over material covered in class with students
who did not attend class (except for excused absences related to university-sponsored
events). It is advised for the student to get notes from a classmate.
3. I will schedule a meeting with you at a mutually convenient time if you have another class
during my scheduled office hours.
4. I will respond to your e-mails within a reasonable time frame.
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CLASS SCHEDULE: **
Date
Reading and Case
Assignments
Topic Topic
No.
Aug. 26
1
Introduction and Why Auditing?
Clikeman handout
Aug. 28
2
Review of Auditing Standards
Chapter 2
Sept. 2
3
Review of other concepts from ACIS 3414
Professionalism Case
Sept. 4
Case 1 – 10 points
[Class Visitors from Deloitte]
Sept. 9
4
Audit Evidence and Documentation
Documentation Case
Sept. 11
[Class Visitor from Grant Thornton]
Participate in an experiment – sign up for times
Sept. 16
5
Sept. 18
Sept. 23
Sales and Collection Cycle
Chapter 7
Case 2 – 10 points
Case 3 – 20 points
Chapters 14 & 16
Sales and Collection Cycle
Sampling and Analytical Procedures
Sampling handout
Sept. 25
Sampling and Analytical Procedures
Chapter 8:
Pg. 223-230
Sept. 30
Sampling Case
Case 4 – 20 points
Fraud
Chapter 11
Fraud Case
Case 5 – 10 points
Cash and Financial Instruments
Chapter 23
Oct. 2
6
7
Oct. 7
Oct. 9
8
Oct. 14
Cash and Financial Instruments
Oct. 16
Cash Case
Oct. 21
MIDTERM EXAM
Case 6 – 20 points
5
Oct. 23
Oct. 28
NO CLASS
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Acquisition and Payment Cycle
Chapters 18 & 19
Oct. 30
Acquisition and Payment Cycle
Nov. 4
A&P Case
Case 7 – 10 points
Completing the Audit
Chapter 24
Completing the Audit Case
Case 8 – 10 points
Audit Reporting
Chapter 3
Nov. 6
10
Nov. 11
Nov. 13
11
Nov. 18
Audit Reporting
Reporting Case
Nov. 20
[Class Visitors from McGladrey]
Nov. 25
& 27
Dec. 2
NO CLASS – Thanksgiving Break
12
Dec. 4
Dec. 9
13
Legal Liability
Chapter 5
Legal Liability Case
Case 10 – 20 points
Wrap-up and Review
FINAL EXAM
9:30am class (80156):
December 16 from 7:45am–9:45am
Dec. 12,
15 or 16
Case 9 – 20 points
12:30pm class (80155):
December 12 from 10:05am–12:05pm
2:00pm class (80154):
December 15 from 1:05pm–3:05pm
** Class schedule is subject to change
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