ACCT 489 A Auditing I

Transcription

1 Columbia College Online Campus P a g e 1 ACCT 489 A Auditing I Late Fall Session Monday, October 26 Saturday, December 19, 2015 Course Description Design, installation and unification of accounting systems and the concepts and procedures used in auditing financial statements. Prerequisite: 12 hours of upper-level accounting including ACCT 382 and ACCT 383 Proctored Exams: -- None Textbooks Auditing & Assurance Services (with CD), 6th edition. Louwers. Richard D. Irwin, Inc., ISBN-13: Textbooks for the course may be ordered from MBS Direct. You can order online at (be sure to select Online Education rather than your home campus before selecting your class) by phone at For additional information about the bookstore, visit Course Overview To teach students to design, install and unify accounting systems and the concepts and procedures used in auditing financial statements. Develops an understanding and appreciation of the philosophy of the audit process and its practice. Studies the preparation of audit working papers supporting an examination of the records and procedures of an enterprise. Covers the report and opinion of the auditor to management, stockholders and others. Considers the ethical and legal responsibilities of the auditor. The class presents an in-depth view of generally accepted auditing standards, audit procedures, and audit reports. In addition, the auditors relationship with their client is discussed throughout the class. To recognize auditing-related issues and identify appropriate information sources to arrive at audit decisions. To apply auditing and other related professional standards. To effectively communicate with audit-related audiences. To identify relevant risks and other factors, and analyze their effect on designing the audit

2 Columbia College Online Campus P a g e 2 plan and conducting the audit. To understand the role and implications of technology on the audit. To appreciate the auditor s role in business and society, including ethical and legal responsibilities. Technology Requirements Participation in this course will require the basic technology for all online classes at Columbia College: A computer with reliable Internet access, a web browser, Acrobat Reader, Microsoft Office or another word processor such as Open Office. You can find more details about standard technical requirements for our courses on our site. Course Objectives To design, install and unify accounting systems To apply the concepts and procedures used in auditing financial statements. Measurable Learning Outcomes Explain the role of the accounting profession in the audit function. Explain the ethical and legal environment of the auditor. Explain basic auditing concepts, including audit objectives and documentation. Plan an audit. Explain the concepts of internal control in manual and computer environments. Test and assess an internal control structure. Define risk and design substantive testing. Collect evidence of financial statement assertions. Conduct an audit of the working capital assertions. Audit the capital asset and financing base assertions. Audit the operations, contingencies, and subsequent events assertions. Prepare the standard and modified audit reports. Grading

3 Columbia College Online Campus P a g e 3 Grading Scale GRADE POINTS PERCENT A B C D F Grade Weights ASSIGNMENT POINTS PERCENT Discussions (8) Dropbox Assignments: Papers (2) & Problems (4) Exams (2) Participation 20 4 Total Schedule of Due Dates (midnight Central Standard Time) WEEK ASSIGNMENT POINTS 1 Discussion Introduction DUE MIDNIGHT CST Wednesday Discussion 12.5 Sunday 2 Discussion 12.5 Sunday Weekly Homework Paper 1 40 Sunday 3 Discussion 12.5 Sunday 4 Discussion 12.5 Sunday Weekly Homework Problem 1 20 Sunday Midterm Exam Discussion 12.5 Sunday Weekly Homework Problem 2 20 Sunday 6 Discussion 12.5 Sunday Weekly Homework Problem 3 20 Sunday 7 Discussion 12.5 Sunday Weekly Homework Paper 2 60 Sunday 8 Discussion 12.5 Saturday Weekly Homework Problem 4 20 Saturday Final Exam 100 Saturday Participation throughout session 20 n/a

4 Columbia College Online Campus P a g e 4 Assignment Overview Readings: Text readings should be completed prior to submitting assignments or weekly discussion postings. All graded assignments will rely upon information derived from our text readings. Discussions: Discussion postings should be complete by their respective deadlines. You are required to post an original answer for each of the questions/topics posed. There is one question/topic each week. Each original post must be a minimum of 50 words. Discussion postings amount to 20% of the student s final grade. Discussion postings will be graded according to the discussion grade criteria table. Weekly Homework: There are two papers and four problem assignments, yet all are referred to as Weekly Homework. The four problems are worth 20 points each and are detailed in the Course Schedule section of this syllabus. The problem assignments will be turned in either through the Quizzes area or the Dropbox area of D2L. See the Course Schedule section of this syllabus for details. The papers will be assigned a grade on the basis of percent of analytical and critical thinking skills, completeness, correct spelling, correct formatting and citations, and neatness. All Dropbox Assignments are worth a total of 180 points, or 36% of your total grade. The papers must be submitted via the correct Dropbox folder. The Sarbanes Oxley Congressional Act of 2002 paper is worth 40 points and must be a minimum of 300 words. This paper should begin with a description of the events which led to the passing of this Congressional act. Next, summarize the Act itself. Lastly, include if and why you feel the Act may be successful in the future. The Accounting Scandals paper is worth 60 points and must be a minimum of 500 words. The Scandals paper must begin with a description of what took place leading to the scandal. Next, describe and quantify the impact it has had on financial markets and its stock price. Lastly, detail how and why you feel the entity will survive or not survive the scandal. You must include a reference page with both papers. Exams: There will be a midterm and a final exam, each worth 100 points. Four days will be allowed to complete each. Each exam will consist of 50 questions including multiple choice, true/false, matching, fill in the blank and multi-select. The two exams comprise 40% of the student s final grade. Participation: Participation 20 points, or approximately 4% of your total grade, will be attributed to class participation. This means that students must do more than simply post their own comments/answers in the Discussions area. They must also read the posts of their colleagues as well as their instructor. The Desire2Learn technology allows instructors to gauge each and every students participation in the course, thus, this is how your participation grade is calculated. Course Schedule Week 1 Auditing and Assurance Services Readings: Chapter 1 Introduction Discussion Due midnight Wednesday Introduce yourself in the "Introductions" topic found in the Discussions area. Please give us more than your name. Include your profession, hobbies, interests, and any other information that can help us get to know you. Please post your response by midnight Wednesday. Discussion 1 This discussion requires you access the internet and complete an exercise researching the various professional certifications offered to accountants and/or auditors. Describe the sites visited and explain in a paragraph they types of certification offered. Also answer the questions: what are the

5 Columbia College Online Campus P a g e 5 benefits of the certification; what topics are covered on the exam; what are the minimum requirements to sit for the exam; what additional experience is required if any? Also, describe why you feel such a certification may or may not prove beneficial to your career goals. In order to ensure your receipt of full credit for your original discussion posts be sure to first read the other students' postings up to that point in time. Then you'll be certain your post includes a unique idea and/or example. Lastly, it's very important that you also read all of my posts, not just in reply to yours but the other students also. Please post your response by midnight Sunday. Week 2 Professional Standards: The Rules of the Road Readings: Chapter 2 and an article or publication such as What is Sarbanes-Oxley? by Guy P. Lander summarizing the 2002 congressional act. Discussion 2 Complete the internet exercise 2.70 on page 73 of the textbook. You may select any company listed in the inspections area of the website. Answer the six questions regarding the company you chose. In order to ensure your receipt of full credit for your original discussion posts be sure to first read the other students' postings up to that point in time. Then you'll be certain your post includes a unique idea and/or example. Lastly, it's very important that you also read all of my posts, not just in reply to yours but the other students also. Please post your response by midnight Sunday. Weekly Homework Paper 1: In this paper, please summarize your interpretation of the Sarbanes-Oxley Act, why it was passed by Congress, and how you feel it will impact future public corporate investments. Be sure to describe this perspective first before you describe why you think it is valid (this helps you learn the various theoretical perspectives). Submit your paper via the correct Dropbox folder by midnight Sunday. Week 3 Reports on Audited Financial Statements Readings: Chapter 12 Discussion 3 Fraud detection and internal controls play a key role in conducting audits. Please read Andersen: An Obstruction of Justice? on page C1 (the page after 876) of the text. Answer question 2 through 6 and provide your views for this discussion. In order to ensure your receipt of full credit for your original discussion posts be sure to first read the other students' postings up to that point in time. Then you'll be certain your post includes an unique idea and/or example. Lastly, it's very important that you also read all of my posts, not just in reply to yours but the other students also. Please post your summary and interpretation by midnight Sunday. Week 4 Materiality and Risk Readings: Chapter 4 Discussion 4 There are various risks involved in auditing any company. Read the case Unhealthy Accounting at HealthSouth case on page C14 of the text. Please answer Questions 1 through 5. In order to ensure your receipt of full credit for your original discussion posts be sure to first read the other students' postings up to that point in time. Then you'll be certain your post includes an unique idea and/or example. Lastly, it's very important that you also read all of my posts, not just in reply to yours but the other students also. Please post your response by midnight Sunday. Weekly Homework Problem 1: Complete multiple choice questions 4.20 through 4.24 on pages 153 and 154 of your text. Turn in your answers through the DropBox in D2L by Sunday at midnight. Midterm Exam: Your midterm exam will be available to you in the Quizzes area midnight Wednesday and must be completed by midnight Sunday. The Midterm is comprised of 50 questions

6 Columbia College Online Campus P a g e 6 including multiple choice, true/false, matching, fill in the blank and multi-select and will cover the material from Weeks 1-4. Week 5 Audit Planning Readings: Chapter 3 Discussion 5 Preparing audit documentation is an integral part of an auditor s examination of financial statements. On a recurring engagement, auditors review the audit plans and audit documentation from the prior audit while planning the current audit to determine their usefulness for the current-year work. For this discussion, answer the following questions: 1) What is the purpose of audit documentation and what types of records are included in the documentation? 2) What factors affect the auditors judgment of the type and content of the audit documentation for a particular engagement? 3) How can auditors make the most effective use of the prior year s audit plans in a recurring audit? In order to ensure your receipt of full credit for your original discussion posts be sure to first read the other students' postings up to that point in time. Then you'll be certain your post includes an unique idea and/or example. Lastly, it's very important that you also read all of my posts, not just in reply to yours but the other students also. Please post your response by midnight Sunday. Weekly Homework Problem 2: Complete multiple choice questions 3.27 through 3.31 on pages 111 and 112 of your text. Turn in your answers through the DropBox in D2L by Sunday at midnight. Week 6 Internal Control Evaluation: Assessing Control Risk Readings: Chapter 5 Discussion 6 In this discussion topic, first explain the difference between inspection and re-performance in the test of controls. Provide two examples not given in the text and different from another student. Second, list the four methods of testing controls. Then, give an example of how each would be used in performing tests. In order to ensure your receipt of full credit for your original discussion posts be sure to first read the other students' postings up to that point in time. Then you'll be certain your post includes a unique idea and/or example. Lastly, it's very important that you also read all of my posts, not just in reply to yours but the other students also. Please post your response by midnight Sunday. Weekly Homework Problem 3: Complete problem 5.70 Role of a Board of Directors in Internal Control on page 217 and 218 of your text. This problem covers various aspects of internal controls and its importance. Please turn yours answers in through the correct Dropbox folder by midnight Sunday. Course Evaluations: You will have an opportunity to evaluate the course near the end of the session. A link will be sent to your CougarMail that will allow you to access the evaluation. Be assured that the evaluations are anonymous and that your instructor will not be able to see them until after final grades are submitted. Week 7 Fraud Awareness Auditing: SAS No. 82 and Beyond Readings: Chapter 6 Discussion 7

7 Columbia College Online Campus P a g e 7 Auditing standards concentrate on management fraud; however, professional standards require auditors to pay attention to employee fraud as well because such fraud may negatively affect the financial statements. Please describe in one paragraph, a situation (or search the internet for one) where fraud was committed in the financial arena. Next, explain in detail why the prosecution of fraud perpetrators is generally considered a good idea. In order to ensure your receipt of full credit for your original discussion posts be sure to first read the other students' postings up to that point in time. Then you'll be certain your post includes a unique idea and/or example. Lastly, it's very important that you also read all of my posts, not just in reply to yours but the other students also. Please post by midnight Sunday. Weekly Homework Paper 2: Submit your Accounting Scandals paper via the correct Dropbox folder by midnight Sunday. Week 8 Revenue, Collections and Audit Completion Readings: Chapter 7 and 11 Discussion 8 The revenue and collection cycle requires extensive controls. For this discussion, re-read the cases at the end of Chapter 7. Answer 3 of the 6 questions on page 300 of the text expressing your views in each case. In order to ensure your receipt of full credit for your original discussion posts be sure to first read the other students' postings up to that point in time. Then you'll be certain your post includes a unique idea and/or example. Lastly, it's very important that you also read all of my posts, not just in reply to yours but the other students also. Please post by midnight Saturday. Weekly Homework Problem 4: Complete multiple choice questions 7.29 through 7.33 on page 303 of your text. Turn in your answers through the DropBox in D2L by Saturday at midnight. Final Exam: Your final exam will be available to you in the Quizzes area midnight Tuesday and must be completed by midnight Saturday. The format of the final is identical to the midterm and will cover the material from Weeks 5-8. Course Policies Student Conduct Plagiarism All Columbia College students, whether enrolled in a land-based or online course, are responsible for behaving in a manner consistent with Columbia College's Student Conduct Code and Acceptable Use Policy. Students violating these policies will be referred to the office of Student Affairs and/or the office of Academic Affairs for possible disciplinary action. The Student Code of Conduct and the Computer Use Policy for students can be found in the Columbia College Student Handbook. The Handbook is available online; you can also obtain a copy by calling the Student Affairs office (Campus Life) at The teacher maintains the right to manage a positive learning environment, and all students must adhere to the conventions of online etiquette. Your grade will be based in large part on the originality of your ideas and your written presentation of these ideas. Presenting the words, ideas, or expression of another in any form as your own is plagiarism. Students who fail to properly give credit for information contained in their written work (papers, journals, exams, etc.) are violating the intellectual property rights of the original author. For proper citation of the original authors, you should reference the appropriate publication manual for your degree program or course (APA, MLA, etc.). Violations are taken seriously in higher education and may result in a failing grade on the assignment, a grade of "F" for the course, or dismissal from the College.

8 Columbia College Online Campus P a g e 8 Collaboration conducted between students without prior permission from the instructor is considered plagiarism and will be treated as such. Spouses and roommates taking the same course should be particularly careful. All required papers may be submitted for textual similarity review to Turnitin.com for the detection of plagiarism. All submitted papers may be included in the Turnitin.com reference database for the purpose of detecting plagiarism. This service is subject to the Terms and Conditions of Use posted on the Turnitin.com site. Non-Discrimination There will be no discrimination on the basis of sex, race, color, national origin, sexual orientation, religion, ideology, political affiliation, veteran status, age, physical handicap, or marital status. Disability Services Students with documented disabilities who may need academic services for this course are required to register with the Coordinator for Disability Services at (573) Until the student has been cleared through the disability services office, accommodations do not have to be granted. If you are a student who has a documented disability, it is important for you to read the entire syllabus before enrolling in the course. The structure or the content of the course may make an accommodation not feasible. Online Participation You are expected to read the assigned texts and participate in the discussions and other course activities each week. Assignments should be posted by the due dates stated on the grading schedule in your syllabus. If an emergency arises that prevents you from participating in class, please let your instructor know as soon as possible. Attendance Policy Attendance for a week will be counted as having submitted a course assignment for which points have been earned during that week of the session or if the proctoring information has been submitted or the plagiarism quiz taken if there is no other assignment due that week. A class week is defined as the period of time between Monday and Sunday (except for Week 8, when the week and the course will end on Saturday at midnight). The course and system deadlines are all based on the Central Time Zone. Cougar All students are provided a CougarMail account when they enroll in classes at Columbia College. You are responsible for monitoring from that account for important messages from the College and from your instructor. You may forward your Cougar account to another account; however, the College cannot be held responsible for breaches in security or service interruptions with other providers. Students should use for private messages to the instructor and other students. The class discussions are for public messages so the class members can each see what others have to say about any given topic and respond. Late Assignment Policy An online class requires regular participation and a commitment to your instructor and your classmates to regularly engage in the reading, discussion and writing assignments. Although most of the online communication for this course is asynchronous, you must be able to commit to the schedule of work for the class for the next eight weeks. You must keep up with the schedule of reading and writing to successfully complete the class.

9 Columbia College Online Campus P a g e 9 No late assignments will be accepted without documented extenuating circumstances beyond the control of the student and with instructor notification prior to the due date. Course Evaluation You will have an opportunity to evaluate the course near the end of the session. A link will be sent to your CougarMail that will allow you to access the evaluation. Be assured that the evaluations are anonymous and that your instructor will not be able to see them until after final grades are submitted. Additional Resources Orientation for New Students This course is offered online, using course management software provided by Desire2Learn and Columbia College. The Student Manual provides details about taking an online course at Columbia College. You may also want to visit the course demonstration to view a sample course before this one opens. Technical Support If you have problems accessing the course or posting your assignments, contact your instructor, the Columbia College Helpdesk, or the D2L Helpdesk for assistance. Contact information is also available within the online course environment. CCHelpDesk@ccis.edu ex helpdesk@desire2learn.com Online Tutoring Smarthinking is a free online tutoring service available to all Columbia College students. Smarthinking provides real-time online tutoring and homework help for Math, English, and Writing. Smarthinking also provides access to live tutorials in writing and math, as well as a full range of study resources, including writing manuals, sample problems, and study skills manuals. You can access the service from wherever you have a connection to the Internet. I encourage you to take advantage of this free service provided by the college. Access Smarthinking through CougarTrack under Students->Academics->Academic Resources. Grading Criteria GRADE CRITERIA FOR DISCUSSIONS 5=A Posting meets the minimum 50-word requirement. Posting includes answers given for all questions. Answers are complete and concise. Shows familiarity with the assigned readings. 4=B Posting has answers for all questions, but the answers do not show impressive familiarity with the assigned readings.

10 Columbia College Online Campus P a g e 10 3=C Answers are not complete. 2=D Assignment is incomplete and does not show familiarity with the assigned readings. GRADE 36-40=A 32-35=B 28-31=C 24-27=D CRITERIA FOR PAPERS Paper is well thought out, organized, spelling and grammatical errors rare. Well written, critical, analytical, and informed thinking is evident. The paper meets the minimum word count and includes a reference page. Paper is well thought out, well written, and/or evidence of some critical thinking. No reference page. Too many spelling and grammatical errors, however, student appears to have the main ideas. Paper is poorly written and/or poorly thought out; sloppy work. Paper includes little evidence that the student even read the text to offer an informed response.