Course Outline

Eastern Connecticut State University

Business Administration Department

 

Course Number (Section): ACC 412 (01)            Instructor: Richard P. Silkoff  Sc.D., CPA

Course Name: Auditing                                         Office Hours: MW 11:00 – 1:00 p.m.

Semester: Spring 2003                                                                  F     11:00 – 12:00 noon

Class Time: Wednesday 7:00 – 9:45 p.m               Office Location: Webb Hall 420                    

Class Location: Webb Hall 313                             E-mail:silkoffr@easternct.edu            

                                                                               Telephone: (860) 465-5326                                                              

COURSE DESCRIPTION AND OBJECTIVES:

Rigorous applications of the principles, conventions and mechanics of auditing are explored. Emphasis is placed on the philosophy and environment of the auditing profession. Attention is given to the nature and purpose of auditing, generally accepted auditing standards, professional conduct, auditor’s legal liability, and the procedures followed in performing audits of financial statements. Specifically, this course is designed:

            1. To introduce students to the principles, conventions and mechanics of financial auditing.

            2. To develop the critical thinking skills necessary to analyze and examine financial statements.    .

3. To gain exposure to professional auditing standards, ethics, legal liability, evidence, planning, internal control and workpaper documentation.

            4. To develop an understanding of statistical sampling techniques used in conducting a financial audit.

 

PREREQUISITES:   ACC 302 (Intermediate Accounting II)

 

 

REQUIRED TEXT/AUDIT CASE:  

Whittington, O.R. & Pany, K., Principles of Auditing,  Irwin McGraw-Hill, 13th ed., 2001                

Paul, Jack W., Peach Blossom Cologne Company: Short Audit Case, Irwin McGraw-Hill, 3rd ed.

 

 

COURSE REQUIREMENTS

Examinations. There will be three examinations. The final exam will be given during the scheduled final exam period. The first two exams are not cumulative, while the final will have a comprehensive component. You must take the exams on the scheduled exam date! Departures from the scheduled exam time are allowed only in the case of extreme emergency.

Audit Cases. The typical work environment in professional organizations, including public accounting firms, requires people to apply what they have learned to real life problems, to critically analyze difficult issues and arrive at a common resolution.You will work to analyze and resolve issues on Peach Blossom Cologne Company.

Homework problems. Homework problems assigned from the textbook will not be collected on a regular basis. However, the key to success in the course will be the completion and comprehension of the homework problems. Homework problems will frequently be discussed in class, and participation is required.

 

 

GRADING PROCEDURE:

The grading is based approximately as follows:

 

 

     Description                          Date                 Weight                       

Exam 1

February 19, 2003

20%

 

 

Exam 2

March 19, 2003

20%

 

 

Final Exam

May 7, 2003

20%

 

 

Peach Blossom Audit Cases (3)

See Course outline

15%

 

 

Paper

April 30, 2003

15%

 

 

Participation

Various

10%

 

 

 

The grading policy will be the same as stated in the college catalogue.

 

If an examination is missed due to extenuating circumstances, a makeup exam will be administered at the discretion of the instructor, provided typewritten explanation is submitted stating the examination to be taken and explaining, in detail, the extenuating circumstances.

 

 

ATTENDANCE POLICIES:

Class participation is very important in this course. Classroom participation and discussion are necessary to make possible a better understanding of the assigned material. Students are expected to attend all scheduled classes and take part in class discussions and assignments. Students are expected to have read the assigned exercises and problems and be prepared to discuss the material and answer questions. As such, participation is worth 10% of grade.

 

* Note: Homework will usually be covered in the class following the date for which it is listed, but homework listed for the class preceding an exam will be covered on the date listed.

 

 

STUDENTS WITH DISABILITIES:

If you are a student with a disability and believe you will need accommodations for this class, it is your responsibility to contact the Office of Disability Services at (860) 465-5573. To avoid any delay in the receipt of accommodations, you should contact the Office of Disability Services as soon as possible. Please understand that I cannot provide accommodations based upon disability until I have received an accommodation letter from the Office of Disability Services. Your cooperation is appreciated.

 

PAPER

Students are expected to write a clear, short and concise report on some change in auditing and GAAS (generally accepted auditing standards) that has occurred over the past 2 years and its impact on a specific company, industry or the CPA profession. Papers should not exceed 8 pages in length. Each individual must discuss the topic of their report with me by the third class. For a list of topics, use "Topics" listed in Course Outline below.

 

COURSE OUTLINE

           

CLASS     

TOPIC

CHAPTER / ASSIGNMENT

        1/22        

The Role of the Public Accountant

1 - 2, 4, 10, 16, 25, 27, 30, 34, 35

1/29

 Professional Standards

2 - 3, 6, 9, 12, 20, 30, 31, 33

2/5

 Auditors’ Reports

17 – 2, 6, 11, 15, 17, 20, 23, 25, 27

 2/12

 Professional Ethics

 

 

3 – 9, 11, 13, 14, 16, 19, 22, 23, 25, 26, 33

 

2/19

Examination I

Chapters 1 through 3 and 17

2/26

 

3/5

Legal Liability of Auditors

 

Audit Evidence and Documentation

 (Peach Blossom Assignment 1)

4 – 1, 2, 3, 5, 10, 20, 21, 25, 27, 28, 30

5 - 4, 5, 6, 10, 16, 20, 22, 24, 25, 38, 42, 46, 56

3/12

Planning the Audit/Audit Programs

6 - 1, 2, 7, 9, 28, 31, 36, 39

 

Internal Control

7 – 1, 2, 5, 6, 10, 22, 23, 33, 36

 

 

 

3/19

 Examination II

Chapters 4 through 7

 

 Classes do not meet from March 24th-March 29th inclusive due to Spring Recess

 

 

 

4/2

4/9

 

Internal Control - Computer

Audit Sampling

(Peach Blossom Assignment 3)

 

8 - 7, 9, 10, 16, 21, 31, 33, 34

9 – 1-15, 35, 39, 46, 49, 50

 

                4/16

Accounts Receivable and Revenue

11 – 3, 13, 18, 18, 34, 37, 38

 

  4/23

Inventories and Cost of Goods Sold

(Peach Blossom Assignment 4)

12 1, 6, 7, 22, 24, 32,33

 

  4/30

Audit Operations and Completion

16 – 1, 3, 7, 14, 34, 35, 36, 38

         (PAPER DUE)

 

  5/7

Other Attest Services / Review

18 - 1, 3, 5, 9, 20, 34, 36

         

           TBA

      

 

Final Exam

 

  Chapters 8,9,11,12,16,18