Department of Business. ACCT*4270 Auditing II Fall 2012

Transcription

1 Department of Business ACCT*4270 Auditing II Fall 2012 Instructors: Sandra Iacobelli J.D. MacLachlan Building Room Fred Pries, PhD, CA J.D. MacLachlan Building room 215A Class Times and Location: Tuesdays and Thursdays 10:00 a.m. to 11:30 a.m. John Eccles Centre Course Description and Objectives: The course examines current and advanced issues affecting the auditing profession. Coverage will include: Auditor skepticism, auditor competence, auditor independence, risk assessment, fraud risk, materiality, complex revenue transactions, going concern, related party transactions, internal control assessments, corporate governance, management estimates, fair value, capitalization policies, reviews, compilations, small business audits, internal & comprehensive auditing, other assurance services, audit of not for profit organizations and Canadian assurance standard setting. Course Materials and Resources: This course uses a variety of materials and resources. One of your primary resources will be the course website ( All announcements, required and recommended readings, assignments and updates will be posted here. You will also be able to access any handouts you may have missed through this site. Check this site often. The required textbooks are: 1. CICA Handbook, Canadian Institute of Chartered Accountants. Electronic access to the CICA Handbook can be obtained through the Courselink site or the University of Guelph library site. Because the Handbook is constantly being updated, a hardcopy version would quickly become outdated and is not recommended. 2. McDonald, Julie (2012), Assurance Cases, John Wiley & Sons Canada. 3. Any current introductory auditing text. You will need to refer back to this text to assist you in case analysis. 1

2 On-Line Communication: When we wish to contact you by , we will do so through your University of Guelph account. You are responsible for monitoring posted to your University of Guelph account on a regular basis. Course Philosophy and Approach: Our goal for this course is to help you develop a set of knowledge and skills that entry-level assurance practitioners should possess. Accordingly there will be strong emphasis on cases to give you practice at applying auditing theory and practices. Method and Timing of Evaluation: Your performance will be evaluated based on the following: Assignment/Examination Date Mark Allocation Case Preparation individual All sessions 5% Group Case Analysis in class All sessions 10% Pair Case Assignment 1 Tues. Oct 16 10% Midterm Examination Tues. Oct 23 20% Pair Case Assignment 2 Thurs. Nov 15 10% Final Examination Tues. Dec 11 40% Case Preparation: You are expected to have read each assigned case and the required readings for each session prior to coming to class. You should be prepared to discuss and analyse the cases assigned to each session. Prior to each session, you will be expected to prepare and submit a case outline on the Courselink site. Detailed requirements have been posted to the Courselink site. Group Case Analysis: The primary focus of most sessions will be groups actively working on the assigned case studies. At the end of each session, each group will be responsible for preparing a summary of their case analysis performed in a presentation format. Groups will be selected at random to present their case analysis to the entire class. In addition, the case analysis summary will be collected and evaluated for all groups. Pair Assignments: You are expected to work in pairs and prepare a written response to an integrated audit case study. The case assignment details will be posted on Courselink. Examinations: Both the midterm and final examinations will consist of audit case analysis questions. The midterm will be held in class on October 23 rd and will cover materials up to and including session 13 on October 18 th. The final exam will be cumulative and will be held on Tuesday December 11 th (8:30-10:30 a.m.). If you are registered with the Centre for Students with Disabilities and will require some form of accommodation in the completion of the required learning activities for this course, please meet with one of the instructors during the first week of classes. Keep a copy of all of your graded work until final marks have been recorded. You may be asked to resubmit your work at any time. 2

3 Course Schedule: 1. Course Introduction Thurs. Sept 6 2. Introduction to Case Analysis Tues. Sept Auditor Skepticism, Competence & Independence Thurs. Sept 13 Case Studies Courselink: If You Need Love, Get a Puppy: A case Study on Professional Skepticism and Auditor Independence, Issues in Accounting Education, May 2009 Readings McDonald: pg 6 to 14 Course Website: Guidelines for Preparing an Audit Planning Memo CAS 200 Overall Objectives of the Independent Auditor and the Conduct of an Audit in Accordance with Canadian Auditing Standards Webpage - Handbook of the Code of Ethics for Professional Accountants (International Ethics Standards Board for Accountants), paragraphs to and to Risk Assessment, Fraud Risk, Materiality Tues. Sept Risk Assessment, Fraud Risk, Materiality Thurs. Sept Auditing Complex Revenue Transactions Tues. Sept 25 McDonald: Mulcahy Inc. McDonald: Sparky s McDonald: Blue Skies Aircraft CAS 240 The Auditor s Responsibilities Relating to Fraud in an Audit of Financial Statements CAS 300 Planning the Audit of Financial Statements CAS 315 Identifying and Assessing the Risks of Material Misstatement through Understanding CAS 320 Materiality in Planning and performing the Audit CICA Handbook Accounting, Part II: 3400 Revenue CICA Handbook Accounting, Part I: IAS 18 Revenue 3

4 7. Auditing Complex Revenue Transactions Thurs. Sept Auditing Going Concern and Related Parties Tues. Oct 2 9. Auditing Going Concern and Related Parties Thurs. Oct Internal Control Assessment, Corporate Governance Tues. Oct Internal Control Assessment, Corporate Governance Thurs. Oct Auditing Management Estimates, Fair Value, and Capitalization Policies Tues. Oct 16 PAIR ASSIGNMENT DUE 13. Auditing Management Estimates, Fair Value, and Capitalization Policies Thurs. Oct MIDTERM Tues. Oct Reviews and Compilations, Small Business Audits Thurs. Oct Reviews and Compilations, Small Business Audits Tues. Oct 30 McDonald: Movies R Us McDonald: Time On Our Side McDonald: Apple Printing Inc. McDonald: Smart Controls McDonald: Midas Touch Courselink: Warmth Home Comfort Courselink: Great Lakes Cruises McDonald: Snow Job McDonald: Clean & Dry CAS 550 Related Parties CAS 570 Going Concern CAS 706 Emphasis of Matter Paragraphs and Other Matter Paragraphs in the Independent Auditor s Report CAS 315 Identifying and Assessing the Risks of Material Misstatement through Understanding (Appendix I only) CAS 330 The Auditor s Responses to Assessed Risks CAS 265 Communicating Deficiencies in Internal Control to Those Charged with Governance and Management CAS 610 Using the work of Internal Auditors CAS 540 Auditing Accounting Estimates CAS 620 Using the work of an Auditor s Expert S 8100 General Review Standard S 8200 Public Account s Review of Financial Statements S 9200 Compilation Engagements 4

5 17. Internal & Comprehensive Auditing Thurs. Nov Internal & Comprehensive Auditing Tues. Nov Other Assurance Services: Special Reports Thurs. Nov 8 McDonald: The Maple Company Courselink: Bloomington University McDonald: Transitions McDonald: Thunder Bay Lightning S5025 Standards for Assurance Engagements and Other Guidance for Engagements Other than Audits of Financial Statements and Other Historical Financial Information PS 5400 Value for Money Auditing S 5800 Special Reports Introduction S 5815 Special Reports Audit reports on compliance with agreements, statues and regulations S 9100 Reports on the Results of Applying Specified Auditing Procedures to Financial Information Other than Financial Statements 20. Other Assurance Services: Special Reports Tues. Nov Fraud & Forensic Auditing, Analytical Procedures Thurs. Nov 15 McDonald: Fries with That? McDonald: The Bad Guys S 9110 Agreed-Upon Procedures Regarding Internal Control over Financial Reporting CAS 520 Analytical Procedures CAS 240 The Auditor s Responsibilities Relating to Fraud in an Audit of Financial Statements PAIR ASSIGNMENT DUE 22. Presentations of Pair Assignment 2 Tues. Nov Audit of Not for Profit Organizations and McDonald: The Erindale Canadian Assurance Standard Setting Hospital Foundation Thurs. Nov Integrative Case Study and Course Case Posted on Courselink. Review Tues. Nov Final Exam Tues Dec. 11 8:30 a.m. to 10:30 a.m. Note: The schedule of learning activities may require modification from time to time. Any changes will be announced in class and/or on the Courselink site. Courselink Improving the Auditor s Report, Invitation to Comment 5

6 Academic Regulations and Procedures: All students are expected to abide by the University s academic regulations in the completion of their academic work, as set out in the undergraduate calendar (see Some regulations are highlighted below. Academic Load: Students should note that 10 to 12 hours of academic time and effort per week (including classes) are expected for a 0.50 credit course (see Academic Misconduct: The University of Guelph is committed to upholding the highest standards of academic integrity and directs all members of the University community faculty, staff and students to be aware of what constitutes academic misconduct and to do as much as possible to prevent academic offences from occurring. The University of Guelph takes a serious view of academic misconduct and it is your responsibility as a student to be aware of and to abide by the University s policy. Included in the definition of academic misconduct are such activities as cheating on examinations, plagiarism, misrepresentation, and submitting the same material in two different courses without written permission. To better understand your responsibilities, read the Undergraduate Calendar at: You are also advised to make use of the resources available through the Learning Commons ( and to discuss any questions you may have with your course instructor, teaching assistant, Academic Advisor or Academic Counsellor. Students should be aware that faculty have the right to use software to aid in the detection of plagiarism or copying and to examine students orally on submitted work. For students found guilty of academic misconduct, serious penalties, up to and including suspension or expulsion from the University can be imposed. Academic Consideration: Students who find themselves unable to meet course requirements by the deadline or criteria expected because of medical, psychological or compassionate circumstances beyond their control, should review the regulations on Academic Consideration in the Undergraduate Calendar ( ac.shtml) and discuss their situation with the instructor, Program Counsellor or Academic Advisor as appropriate. Religious Holidays: Should a student need to miss scheduled tests, mid-term examinations, final examinations, or requirements to attend classes and participate in laboratories for religious reasons, please advise the instructor within two weeks of the distribution of this course outline so that alternate arrangements can be made. For further information see 6