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Auditing

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Auditing

This course addresses auditing concepts and auditor’s decision making process. The students will be exposed to the definition and field of auditing. This course provides understanding and knowledge to students about the procedures and practical aspects of auditing and the application of auditing standards in the conduct of audit.

ACN 201- Accounting Principles, ACN 202-Management Accounting I and ACN 301-Intermediate Accounting I 

  1. It is the student’s responsibility to gather information about the assignments and covered topics during the lectures missed. Regular class attendance is mandatory. Points will be taken off for missing classes. Without 70% of attendance, sitting for final exam is NOT allowed. According to IUB system students must enter the classroom within the first 20 minutes to get the attendance submitted.
  2. The date and syllabus of quiz, midterm and final exam is already given here, however, announcements will be given ahead of time. There is NO provision for make-up quizzes.
  3. The reading materials for each class will be given prior to that class so that student may have a cursory look into the materials.
  4. Class participation is vital for better understanding of sociological issues. Students are invited to raise questions.
  5. Students should take tutorials with the instructor during the office hours. Prior appointment is required.
  6. Students must maintain the IUB code of conduct and ethical guidelines offered by the School of Business.
  7. Students must refrain from any type of cheating and/or plagiarism in a course. Any student acting otherwise will receive an “F” grade in the course. School of Business, IUB, maintains a zero tolerance policy regarding violation of academic integrity.
  1. Students are not allowed to keep bags, handouts, books, mobile phones, smart watches or any other smart electronic devices with them during any exam. Students are advised to keep everything in the front of the class room before the exam starts. Please note that, just carrying any smart electronic devises (even if the devise is turned off or put it in silent mode) during the exam will be considered as “cheating”. Moreover, during the exam, anything written on hand palms (or anywhere else) and carrying paper materials (whatever is written) will be considered as “cheating”. Any sorts of “cheating” will result in an “F” grade with no exception. During the exam, students are only allowed to carry pen, pencil, eraser, sharpener, ruler, highlighter and calculator in a clear plastic bag.
Type of Evaluation Nos. Weight
Class Attendance and Participation 100% 5
Quiz (Best two will be counted) 5 10
Project and Presentation 01 30
Midterm Exam 01 25
Final Exam 01 30
Total   100%

[Class attendance is mandatory; failure to do so may deduct the final marks]

The following chart will be followed for grading. This has customized form the guideline provided by the school of Business.

A A- B+ B B- C+ C C- D+ D F
90-100 85-89 80-84 75-79 70-74 65-69 60-64 55-59 50-54 45-49 0-44

* Numbers are inclusive

The course will be based mostly on the following books [some other books and journals may be referred time to time]:

  • Alvin A. Arens & James K. Loebbecke, Auditing – An Integrated Approach (8th  Edition)
  • Principles of Auditing and Other Assurance Services (19th Edition) by Ray Whittington & Kurt Pany

 

Link to virtual learning system: http://103.254.86.4/sb/ (School of Business – Faculty name- Login as a guest- password is 1234).

Sessions Topic Learning Outcomes Readings
Session -1 Introduction Introduction to Auditing

Explanation of Course Outline

 Course Outline
Session -2  The Demand for Audit and Assurance Service Definition “Auditing”

Objectives of Auditing

Difference between Accounting & Auditing

Arens, James

Chapter 1

Page 1-21

Handout available on virtual learning system

Session -3  The Demand for Audit and Assurance Service Types of Auditing

Auditors Role

Types of Auditors`

Auditor as an Independent discipline

 Arens, James

Chapter 1

Page 1-21

Handout available on virtual learning system

Session -4  

The Demand for Audit and Assurance Service

 

 

 

Auditors Qualifications, Disqualifications

Auditors Rights & Duties

The Power of Auditor

 Arens, James

Chapter 1

Page 1-21

 

Handout available on virtual learning system

Session -5  Professional Ethics

 

 

Quiz 1

Need for Ethics

Why people act Unethically

Ethical Dilemma

 

Chapter : 1

 

 Arens, James Chapter 4

Page 75-106

 

 

 

Session -6  Professional Ethics

 

Ethical Principles

Code of professional conduct

Others Rules of Conduct

 Arens, James Chapter 4

Page 75-106

 

Handout available on virtual learning system

Session-7  WorldCom Briefly discuss about WorldCom Scandal  Handout
Session -8  Audit Reports

 

 

 

 

 

 

Quiz 2

Standard Unqualified Audit Report

Conditions for Standard Unqualified Audit Report

Unqualified Audit Report with explanatory paragraph or modified

Consistency versus Comparability

 

Chapter : 1 & 4

 

Arens, James Chapter 3

Page 43-73

 

Handout available on virtual learning system

Session -9  Audit Reports Substantial doubt about going concern

Departures from an unqualified audit report

Adverse Opinion

Disclaimer of Opinion

Materiality

 Arens, James Chapter 3

Page 43-73

 

Session -10  Audit Reports Different types of Audit reports

[Page 56-57]

Number of paragraphs in the reports

Arens, James Chapter 3

Page 43-73

 

 

 

Session -11  Audit Responsibilities and objectives Management Responsibilities

Auditor’s Responsibilities

Auditor’s Responsibilities for discovering illegal Acts

Cycle Approach to segmenting an Audit

Audit Objectives

 

Arens, James Chapter 6

Page 141-175

Handout available on virtual learning system

Session -12  Audit Responsibilities and objectives

 

 

Transaction related audit objectives

Balanced related audit objectives

Plan and Design an Audit Approach (Phase1) and (Phase2)

 

 

Arens, James Chapter 6

Page 141-175

 

Session -13  Audit Evidence Audit Evidence Contrasted with legal and scientific evidence

Audit Evidence Decisions

Audit Program

Persuasiveness of evidence

Types of Audit Evidence

 

 Arens, James Chapter 7

Page 175-215

Handout available on virtual learning system

 

 

 

Session -14 Midterm Exam  CHAPTERS 1,3,4,6,7 Arens, James

Chaptert 1,3,4,6,7

Session -15  Audit Planning and Documentation Definition “Planning.”

Obtain Knowledge of client’s industry and Business

 

Arens, James Chapter 8

Page 217-247

Handout available on virtual learning system

 

 

Session -16  Hand Note Audit Evidence and Documentation Whittington, Pany (Book2)

Handout available on virtual learning system

Session -17  Hand Note

 

 

Audit Planning, Understanding The Client, Assessing Risks and Responding

 

 

 

 Whittington, Pany (Book2)

Handout available on virtual learning system

Session -18 Materiality and Risk Judgment about Materiality

Illustration of Different Evidence among cycle [ Page 258]

Types of Risk

Relevant Problem Solving from Hand Notes

 Arens, James Chapter 9

Page 248-286

Handout available on virtual learning system

Session -19  Materiality and Risk (Continue)  

 

 

Session -20  Audit Sampling Overview for Audit Sampling  Chapter 09

(Text Book 2)

Handout available on virtual learning system

Session -21  The Impact of Information Technology on the Audit process

 

Quiz

Assessing risk of information technology

Different types of controls

Effects of IT

 

 

 

Chapter: 5, 6,&9

 Arens, James Chapter 11

Page 329-357

Handout available on virtual learning system

Session -22 The Impact of Information Technology on the Audit process (Continue) Arens, James Chapter 11

Page 329-357

 

Session -23 Project Presentation Project Submissions and Presentation  

 

Session -24  Project Presentation Project Submissions and Presentation

 

Session -25  Review Class  Review class for final chapters
Session -26 Final Exam  Based on the final syllabus

Students who are willing to audit the course are welcome during the first two classes and are advised to contact the instructor after that.

Plagiarism- that is the presentation of another person’s thoughts or words as though they were the students’ own – must be strictly avoided. Cheating and plagiarism on exam and assignment are unacceptable.

Please see the green book for further information about academic regulation and policies, including withdrawal and grading, apples and penalties for pilgrims and academic misconduct.

Students with disabilities are required to inform the School of Business/ Department of Economics of any specific requirement for classes or examination as soon as possible.