Course AIM 6334 501 10122 Auditing

Professor Liliana Hickman-Riggs, CPA CITP CMA CIA CFE FCPA DABFA MS
Term Fall 2006
Meetings Thursday 7:00-9:45 pm SOM 1.110

Professor’s Contact Information

Office Phone 214 378-5400 (# to call for a timely answer)
Other Phone 972 883-5903
Office Location SOM 4.228
Email Address llh017100@utdallas.edu and liliana@accounting.net
Thursday 5:30 - 6:45 PM
Office Hours
Friday 5:15 - 6:15 PM or by appointment
Other Information TA’s e-mail: tien_nguyen83@hotmail.com

General Course Information

Course
Description AIM 6334 Auditing is a challenging and difficult course that can vastly add to your
knowledge. To be successful in this course, you must devote adequate preparation time. The
course text chapter reading assignments and homework problems are indicated on the
attached schedule.
If you are having difficulty with the topics presented, please see me and or the TA at the
earliest opportunity. Chapter reading assignments should be completed in a timely manner.
The assignment schedule may be modified during the semester if necessary.

All efforts will be made to cover each chapter in a detailed manner. Because of the quantity of
the material to be covered, an in depth study of each chapter cannot be realistically achieved.
It is therefore the responsibility of each student to study any portions not covered in class.
Learning
Outcomes Basic concepts, philosophy, standards, procedures, and practices of auditing are presented.
Topics include generally accepted auditing standards, the changing role of the independent
auditor in society, professional conduct and ethics, the auditor’s reporting responsibilities, risk
assessment, internal control, fraud, evidential matter, and auditing in the global economy. The
course will serve as a base for the ever interesting opportunities in Forensic Accounting and
Fraud Examination area.

To use critical thinking

To achieve a thorough understanding of the basic concepts, philosophy, standards, procedures
and practices of the public accounting profession’s reporting obligations and responsibilities.
To understand and appreciate how the basic concepts, philosophy, standards, procedures and
practices of the public accounting profession affect the various stakeholders who rely or may
rely on general purpose financial statements and/or other financial or non-financial
information that has been reported on by professional accountants.
To understand the meaning of "professional standards” and their history, evolution and
establishment as they relate to professional accountants’ reporting responsibilities.
To understand and appreciate the difference between professional standards that relate to

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 professional accountants’ reporting responsibilities and established criteria used by preparers,
e.g., generally accepted accounting principles.
To understand and appreciate the dynamic and changing public accounting and auditing
profession.

To understand and appreciate the ethical legal and business issues of the public
accounting and auditing profession.
Discuss the potential conflicting objectives among users, preparers and auditors of general-
purpose financial statements.
Discuss the current ethical issues facing the accounting profession.
Discuss the current legal and regulatory environment facing the profession and its clients and
the current credibility crisis facing the profession.
Discuss the changing business model and its effect on management, investors, creditors and
the public accounting profession.

To recognize that auditing and accounting are not limited by national boundaries and
that differences do exist
The current status of international accounting standards.
The current status of international auditing standards.
To enjoy the course

Required Auditing & Assurance Services, Messier, 4th Edition, McGraw-Hill ISBN # 0-07-313753-7
Texts &
Materials
Resources
The textbook for this course provides a wealth of material. However, the universe of auditing
information is much greater than what you will find in the text. Much of it is available on
online library, as well as through the rest of the publicly accessible Internet. The publisher
has excellent additional tools and good information and these sources should be part of your
academic experience.

On WebCT I have posted power point presentations for each chapter available to you at your
discretion and solutions for each chapter so that you can check the correctness of your work.

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Assignments & Academic Calendar
These descriptions and timelines are subject to change at the discretion of the Professor.
Month Date Subject Matter Suggested Homework
(not graded)
Aug 17 Introduction of the course

24 Chapter 1: An Introduction to Auditing & Assurance 1 – MC 12-19

Chapter 2: The Public Accounting Profession 2 – MC 16-27

31 Chapter 3: Materiality and Risk Assessment 3 – MC 13-22, 24, 26

Chapter 5: Planning and Types of Audit Test 5 – MC 16-28
Assignment 1 due on/before September 6, 2006 at midnight
Sept 7 Chapter 6: Internal Control in a Financial Statement Audit 6 – MC 12-25
Chapter 7: Auditing Internal Control over Financial Reporting 7 – MC 16-29, 38

14 Chapter 4: Audit Evidence and Audit Documentation 4 – MC 12-21, 22, 27

Chapter 10: Auditing the Revenue Process 10 – MC 12-23, 28
Assignment 2 due on/before September 20, 2006 at midnight
21 Chapter 11: Auditing the Purchasing Process 11 – MC 12-22, 27
Chapter 12: Auditing the Human Resource Management Process 12 – MC 14-23

28 Examination 1 Chapters 1-7 & 10-12 Please bring a SCANTRON form 882-E

Oct 5 Chapter 8: Audit Sampling 8 – MC 11-20

Chapter 9: Audit Sampling 9 – MC 11-20

12 Chapter 13: Auditing the Inventory Management Process 13 – MC 14-26, 32

Chapter 14: Auditing Financing Process 14 – MC 12-22, 27

19 Chapter 15: Auditing Financing Process 15 – MC 11-20, 25

Chapter 16: Auditing Financing Process 16 – MC 11-21, 24, 27
Assignment 3 due on/before October 25, 2006 at midnight
26 Chapter 17: Completing the Engagement 17 – MC 13-21, 28
Chapter 18: Reports on Audited Financial Statements 18 – MC 14-28, 29-30

Nov 2 Chapter 21: Assurance, Attestation, and Internal Auditing Services 21 – MC 15-29, 34

9 Chapter 19: Professional Conduct, Independence, and Quality Control 19 – MC 15-27, 30-31
Chapter 20: Legal Liability 20 – MC 14-25

16 Final Examination Chapters 8-9 & 13-21 Please bring a SCANTRON form 882-E
Although the final exam is not comprehensive in nature, encompassing all chapters covered, a few core
competency questions related to the general audit process will be in the final.
23 Thanksgiving – No class

30 Research Paper is due – Paper form & WebCT 6.0

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Course Policies
Grading A = 280, B = 250, C = 210
(credit) Two closed book examinations @ 100 pts each 200
Criteria ***Project --Audit Plan and Analysis -70 pts 70
Problems Assignments (3) @ 10 pts each 30
Total available points 300
Examinations
There will be two regular closed book examinations, each covering the chapters as indicated
on the assignment sheet. Exam dates are firm. Each test is a combination of problems and
multiple choices. Assume there will be at least one problem and “about 7 multiple choice
questions per chapter”. Please bring a SCANTRON form 882-E at each examination.
No scratch paper is allowed in the examination.

Make-up
No make-up exams
Exams
Extra Credit No extra credit
Assignments
All problems/assignments must be submitted via WebCT 6.0 by midnight of the due day,
late assignments will not be accepted. WebCT will promptly acknowledge the receipt of
your assignments and I will correct your work at a later time. Be careful, strange things
tend to happen in cyberspace. Be sure to read all announcements/discussions, posted on
WebCT 6.0, carefully.

The problems/assignments will be posted on the WebCT and are due via WebCT 6.0 by
midnight of the due date as listed on the schedule outline.

Late Work No late work is accepted

Project
Audit Plan and Analysis

The objectives of this project are as follows:

To acquaint you, the student, with the annual report and Form 10-K of a publicly held
company audited by a CPA firm.
To provide data for the practical application of certain steps in the audit process.
To allow you to experience through a simulated case a small part of actual auditing.

Detailed Instructions

1. Obtain a copy of a recent annual report of a publicly held company with stock actively
traded on the New York, NASDAQ or other over-the-counter exchanges. Answer the
following questions:

a. What is the company's industry?

b. What are its primary products?
c. What raw materials does the company use?
How large is the company: Sales, assets, employees?
d. Where is the company located?

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 e. What other people/companies are closely associated with this company?
f. Look at the annual report:
What image does it intend to convey?
What are the segments and functional contents of the report?

2. Obtain a copy of the Company's 10-K report for the same date as the annual report.
Answer the following questions:

a. How does the 10-K differ from the annual report?

b. Supplement the answers to the questions under 2 as appropriate.

3. Obtain outside information about the company and its industry. Answer the following
questions:

a. What are the key economic factors about the industry?

b. Where is the company in its life cycle?
c. What are the five or six most important factors for success in this business?
d. How does this company stand with respect to these factors?
e. Describe four or five key business risks related to the client's business and industry.
f. What notable accounting considerations are there for companies in this industry?
g. What legal or regulatory matters are of concern?
h. What social matters are of concern?

4. Analyze the company's financial strength:

a. Assess the financial strength of the company?

b. How is the financial strength likely to change in the next year or so?
c. What are its sources of capital and what is the value of the company's capital?
d. How have capital markets responded to the company in the last year?
e. What is the quality of earnings?
f. How does the company compare with others in the industry?

5. Prepare a broad audit plan:

a. What material types of transactions and transaction cycles are involved?
b. What are the high-risk areas?
c. What are the low-risk areas?
d. If management faced tremendous pressure regarding the entity's financial
performance, what opportunities might exist for them to engage in fraudulent
financial reporting?
e. To what extent do you believe it will be appropriate to reduce assessed control risk?
f. How will audit effort be allocated among geographical areas?
g. What form of auditors' report do you expect will be issued; what does it mean?

This project accomplishes several purposes. First, it relates the course content to a real
(although broadly presented) situation. You get the idea of auditing the business, not just the
books. Second, you are confronted with having to understand an annual report. Third, you
have to think about such things as business risk and allocation of scarce resources as a
decision maker.

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 Since audits are done by teams and auditors must learn to operate successfully in this mode
you can if you wish work with one classmate and form a team of “two”. If this is your
choice, please send me an e-mail and let me know that you and XXX will work together.

Your report or the team's report determines the grade for each member, regardless of how
you and the teammate allocated effort. In grading the report, 30 percent of the total project
grade is based on communication quality. This includes organization, style, grammar,
neatness, clarity, presentation, etc. Since effective communication is so essential in practice,
this skill receives emphasis in many ways throughout the course.

You will present for grading the complete work done in paper form on November 30, 2006
(Early submission IS encourage).
In addition, a copy of the paper must be submitted via WebCT.
Grading The work will be graded based on the following criteria:
Criteria
Project 1. Mastery of Auditing & Accounting Concepts
Thorough understanding of Auditing and Accounting Principles, GAAS and PCAOB
standards, and their applications.
2. Responsiveness to the Assignment
Assignment directly and completely accomplished in an exceptional manner.
3. Appropriateness for the Audience
Effective point of view, tone, attitude toward content.
4. Coherent Organization
Clear transitions and logical progression of ideas, major points, principles and
conclusions.
5. Critical Supporting Analysis
The main points of the paper are supported by relevant and specific details.
6. Clarity and Conciseness
Clear, efficient well constructed sentences with specific appropriate vocabulary.
7. Correct Use of Mechanics
English is characterized by correct adherence to conventions of grammar, capitalization,
spelling and usage
8. Citation and Documentation
Clearly incorporates material into the paper, documents sources accurately.
9. Visual Presentation
Graphics, charts, and visual aids are effectively used to enhance contexts.
10. Overall Evaluation
The writer keeps a narrow focus on the topic while providing the reader a broad
exposition on the subject.

Other Additional Observations deemed critical by the instructor.

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Class
Attendance Required at all classes.
Effective Class Explanations: An essential skill for an auditor is the ability to articulate
carefully analysis and to convince others of recommendations based on such analysis.
Active class participation by students is an essential part of the learning experience in this
course. Your ability to express yourself concisely, accurately, and under pressure is
enhanced through regular participation. Your comments can also enhance the learning
experience of your classmates. Regular presentation of your ideas sharpens your mastery of
the subject matter.
Classroom My expectations of you:
Citizenship I expect you to obtain an understanding of the nature of governmental entities as well as to
understand how the activities in a nonprofit business organization and be able to discern the
motive rules and accounting that govern these entities. I also expect you to focus on the
audit part of these entities and be well aware of the increased responsibilities of the auditor
under GAAS, GAGAS, PCAOB and SAA.

I will hold you responsible for a thorough understanding of all material presented in class as
well as all text material, any additional handouts that I may provide, and any assigned
material. The knowledge you will need in this class will not accrue only from your textbook.
I expect you to perform research and acquire knowledge or information to supplement the
issues presented or discussed in class. I expect you to participate.

My responsibilities:

I will prepare diligently. I will introduce the concepts and mechanics with examples and
lectures. I will also go over selected problems to help you become comfortable with the
material. I will use a mixture of lecture and problem solving, analysis and common sense.
I will always make time to answer your questions.
I will ensure an equitable distribution of “air time” for your comments and questions so that
you will perceive yourself as an equity holder in the learning process.
I will motivate you to prepare for class and offer you a structured and organized framework
that fosters learning and growth.
Student
Conduct and The University of Texas System and The University of Texas at Dallas have rules and
Discipline regulations for the orderly and efficient conduct of their business. It is the responsibility of
each student and each student organization to be knowledgeable about the rules and
regulations which govern student conduct and activities. General information on student
conduct and discipline is contained in the UTD publication, A to Z Guide, which is provided
to all registered students each academic year.

The University of Texas at Dallas administers student discipline within the procedures of
recognized and established due process. Procedures are defined and described in the Rules
and Regulations, Board of Regents, The University of Texas System, Part 1, Chapter VI,
Section 3, and in Title V, Rules on Student Services and Activities of the university’s
Handbook of Operating Procedures. Copies of these rules and regulations are available to
students in the Office of the Dean of Students, where staff members are available to assist
students in interpreting the rules and regulations (SU 1.602, 972/883-6391).

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 A student at the university neither loses the rights nor escapes the responsibilities of
citizenship. He or she is expected to obey federal, state, and local laws as well as the
Regents’ Rules, university regulations, and administrative rules. Students are subject to
discipline for violating the standards of conduct whether such conduct takes place on or off
campus, or whether civil or criminal penalties are also imposed for such conduct.
Academic
Integrity The faculty expects from its students a high level of responsibility and academic honesty.
Because the value of an academic degree depends upon the absolute integrity of the work
done by the student for that degree, it is imperative that a student demonstrate a high
standard of individual honor in his or her scholastic work.

Scholastic dishonesty includes, but is not limited to, statements, acts or omissions related to
applications for enrollment or the award of a degree, and/or the submission as one’s own
work or material that is not one’s own. As a general rule, scholastic dishonesty involves one
of the following acts: cheating, plagiarism, collusion and/or falsifying academic records.
Students suspected of academic dishonesty are subject to disciplinary proceedings.

Plagiarism, especially from the web, from portions of papers for other classes, and from any
other source is unacceptable and will be dealt with under the university’s policy on
plagiarism (see general catalog for details). This course will use the resources of
turnitin.com, which searches the web for possible plagiarism and is over 90% effective.
Email Use The University of Texas at Dallas recognizes the value and efficiency of communication
between faculty/staff and students through electronic mail. At the same time, email raises
some issues concerning security and the identity of each individual in an email exchange.
The university encourages all official student email correspondence be sent only to a
student’s U.T. Dallas email address and that faculty and staff consider email from students
official only if it originates from a UTD student account. This allows the university to
maintain a high degree of confidence in the identity of all individual corresponding and the
security of the transmitted information. UTD furnishes each student with a free email
account that is to be used in all communication with university personnel. The Department
of Information Resources at U.T. Dallas provides a method for students to have their U.T.
Dallas mail forwarded to other accounts.
Withdrawal The administration of this institution has set deadlines for withdrawal of any college-level
from Class courses. These dates and times are published in that semester's course catalog.
Administration procedures must be followed. It is the student's responsibility to handle
withdrawal requirements from any class. In other words, I cannot drop or withdraw any
student. You must do the proper paperwork to ensure that you will not receive a final grade
of "F" in a course if you choose not to attend the class once you are enrolled. Last day to
drop the course with a "W": October 30, 2006
Student Procedures for student grievances are found in Title V, Rules on Student Services and
Grievance Activities, of the university’s Handbook of Operating Procedures.
Procedures
In attempting to resolve any student grievance regarding grades, evaluations, or other
fulfillments of academic responsibility, it is the obligation of the student first to make a
serious effort to resolve the matter with the instructor, supervisor, administrator, or
committee with whom the grievance originates (hereafter called “the respondent”).
Individual faculty members retain primary responsibility for assigning grades and

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 evaluations. If the matter cannot be resolved at that level, the grievance must be submitted
in writing to the respondent with a copy of the respondent’s School Dean. If the matter is
not resolved by the written response provided by the respondent, the student may submit a
written appeal to the School Dean. If the grievance is not resolved by the School Dean’s
decision, the student may make a written appeal to the Dean of Graduate or Undergraduate
Education, and the deal will appoint and convene an Academic Appeals Panel. The decision
of the Academic Appeals Panel is final. The results of the academic appeals process will be
distributed to all involved parties.

Copies of these rules and regulations are available to students in the Office of the Dean of
Students, where staff members are available to assist students in interpreting the rules and
regulations.
Incomplete
Grades As per university policy, incomplete grades will be granted only for work unavoidably
missed at the semester’s end and only if 70% of the course work has been completed. An
incomplete grade must be resolved within eight (8) weeks from the first day of the
subsequent long semester. If the required work to complete the course and to remove the
incomplete grade is not submitted by the specified deadline, the incomplete grade is changed
automatically to a grade of F.
Disability The goal of Disability Services is to provide students with disabilities educational
Services opportunities equal to those of their non-disabled peers. Disability Services is located in
room 1.610 in the Student Union. Office hours are Monday and Thursday, 8:30 a.m. to 6:30
p.m.; Tuesday and Wednesday, 8:30 a.m. to 7:30 p.m.; and Friday, 8:30 a.m. to 5:30 p.m.
The contact information for the Office of Disability Services is:
The University of Texas at Dallas, SU 22
PO Box 830688
Richardson, Texas 75083-0688
(972) 883-2098 (voice or TTY)

Essentially, the law requires that colleges and universities make those reasonable
adjustments necessary to eliminate discrimination on the basis of disability. For example, it
may be necessary to remove classroom prohibitions against tape recorders or animals (in the
case of dog guides) for students who are blind. Occasionally an assignment requirement
may be substituted (for example, a research paper versus an oral presentation for a student
who is hearing impaired). Classes enrolled students with mobility impairments may have to
be rescheduled in accessible facilities. The college or university may need to provide
special services such as registration, note-taking, or mobility assistance.

It is the student’s responsibility to notify his or her professors of the need for such an
accommodation. Disability Services provides students with letters to present to faculty
members to verify that the student has a disability and needs accommodations. Individuals
requiring special accommodation should contact the professor after class or during office
hours.
Religious The University of Texas at Dallas will excuse a student from class or other required
Holy Days activities for the travel to and observance of a religious holy day for a religion whose places
of worship are exempt from property tax under Section 11.20, Tax Code, Texas Code
Annotated.

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 The student is encouraged to notify the instructor or activity sponsor as soon as possible
regarding the absence, preferably in advance of the assignment. The student, so excused,
will be allowed to take the exam or complete the assignment within a reasonable time after
the absence: a period equal to the length of the absence, up to a maximum of one week. A
student who notifies the instructor and completes any missed exam or assignment may not
be penalized for the absence. A student who fails to complete the exam or assignment within
the prescribed period may receive a failing grade for that exam or assignment.

If a student or an instructor disagrees about the nature of the absence [i.e., for the purpose of
observing a religious holy day] or if there is similar disagreement about whether the student
has been given a reasonable time to complete any missed assignments or examinations,
either the student or the instructor may request a ruling from the chief executive officer of
the institution, or his or her designee. The chief executive officer or designee must take into
account the legislative intent of TEC 51.911(b), and the student and instructor will abide by
the decision of the chief executive officer or designee.
Off-Campus
Instruction Off-campus, out-of-state, and foreign instruction and activities are subject to state law and
and Course University policies and procedures regarding travel and risk-related activities. Information
Activities regarding these rules and regulations may be found at
http://www.utdallas.edu/BusinessAffairs/Travel_Risk_Activities.htm. Additional
information is available from the office of the school dean.
Strategies
For Success: To further ensure your success, I suggest you follow these strategies:
There is no special secret to succeeding in this course. Most students who are committed to
the “4 Ps” have little trouble:

•Preparation. Do the assigned readings so that the class explanation will mean more.
Apply your knowledge to problem solving, the more you solve, the better you learn.
Preparation is success.
• Presence. If you are not present, then you cannot learn and you cannot add your
expertise to the group explanation. Exchange contact data with a classmate so that if you
miss a class you stay informed.
• Promptness.
• Participation. Each student’s learning is best facilitated by regular participation. Each
student is responsible for sharing his or her understanding and judgment with the class to
advance the group’s collective skills and knowledge.
• Drill. Do enough exercises to turn the “theoretical information” into “practical skills”
• Re-do homework, to become proficient. Copying solutions ≠ working problems.
Analyze and learn from your mistakes. Failure is a great way to learn.
• “Read the English!” If you understand the question you will solve the problem.
Assignments: Text chapter assignments are indicated on the attached schedule. Chapter reading should be
completed in a timely manner. Work as many of the problems, cases and exercises as you
can to better understand the material. Although many of the exercises and problems will be
used to illustrate major points during the class lectures, the ultimate responsibility rests with
you
Method of
Presentation: The theory and philosophy of accounting for Auditing will be presented through lectures,

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handouts and overhead transparencies as needed. The student’s participation is essential.
Each class will have assigned topics and chapters readings. Begin each class with a lecture
designed to provide structure to the material and to clarify the learning Objectives
surrounding the topic. The remainder of class will be used to explain the relevance and
essence of the assigned reading, to practice applying the theories and techniques, and to
consider related current developments.

Be very prepared for class. Preparation requires that you read the assigned materials and
work through the examples in the readings. It will not be possible to explain each chapter or
reading in a detailed way during class.

In my experience, the most effective way for adults to learn about auditing issues and
develop related skills is through experiential learning. Accordingly, a major emphasis of this
course will involve exercises, decision-making, problem-solving and collaborative learning.
The assignments are designed to provide the individual learner with opportunities to develop
greater awareness of the decision-making process and to enhance skills in audit planning
and implementation. Confucius best captures the specific contribution of the experiential
exercises to the overall development of the learner’s capabilities in this statement:

I HEAR AND I FORGET, I SEE AND I REMEMBER, I DO AND I UNDERSTAND

The text and reading materials are intended to provide each student with knowledge of and
practice relating to current theories, concepts, models, and tools. This information and these
skills can assist the student in developing an ability to design effective problem solutions. It
is assumed that you have thoroughly read and worked through the examples prior to the
class sessions. The knowledge and skills gained are cumulative. The student is expected to
utilize all previously learned material in any particular analysis.

Case-Study/Project Method. Case studies/Project in this course reinforces the practitioner

approach. Some of the thinking and writing you will be asked to do in this course is centered
on actual or imaginary cases. Case studies challenge you to apply theories to explain events,
and at the same time test the effectiveness of the theories and methodologies. In this course,
which is a training ground for the study of Auditing and assurance services, you will be
given a project and or problems with most of the following features:

There is a problem/situation, in a well-described setting. The problem always has a history

and presents the reader with questions such as "What should be done now?"
The reader is asked to analyze and evaluate the situation as fully as possible.

The reader is then asked to suggest one or more potentially course of action, supporting
his/her recommendations as fully as possible. S/he might also be asked to explain what
could go wrong if his/her recommendations were followed.

In every case study and project you are being asked to imagine yourself as an actor on the
organizational stage, not just an observer. Ultimately, learning that does not result in action
is wasted. The whole point of learning about Auditing and assurance services is to equip you
with the knowledge and skills to audit effectively even though additional learning will be
required.

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The amount you learn depends on how carefully you read it and how well you analyze
everything in this course. Read and come to class ready to contribute to explanations, just as
though you were preparing for a (worthwhile) meeting at work. Don’t be passive. Don’t
expect somebody else in the class to do the analysis or come up with that great solution to
the firm’s problems.

Written Assignments: Prepare all written assignments in a professional manner. Pay

careful attention to proofing your written work. To ensure system-wide consistency in
preparing written assignments/reports you are required to follow the guidelines outlined
below. Your work will be evaluated not only on the content of the written report, but also
on your applying the rules for business communication writing reports and citing sources
used when applicable.

For the three assignments listed on the schedule outline please use the following:
Use a memo format
To: Ms. XYZ (or whomever the question ask)
From: (your name and your title)
Date:
Subject: (XXX)

Dear Ms. XYZ:

Start with a good introductory sentence (see example)

You have asked of me to address XXX ...

(Write your explanation. It should not read like a page from the book but should read as you
are explaining to someone the relevant topic and communicate your understanding by using
your words. Do not give list, use numbers (as in 1, 2, 3, and do not use bullets). It should
read as a good prose.

Have a good concluding sentence (example): If I can be of further assistance and you have
any other questions, please do not hesitate to contact me.

Best regards, Respectfully yours,(or other salutations)

Your name.

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Course Objectives:
Learning Goals/Objectives
“What is it that you want your students to get
from this class?”
1) Distinguish ethical and unethical behavior in
personal and professional contexts as it relates to
audit. Resolve ethical dilemmas using an ethical
framework, and explain the importance of ethical
conduct for the accounting profession as a whole
solely charged with the public interest.
2) Students will understand compare and contrast
the objectives, differences and similarities between
internal auditing (CIA objectivity and competence)
and external auditing (CPA independence, integrity).
Furthermore, they will learn the goals,
responsibilities, and reporting levels applicable to
public companies ( Public Company Accounting
Oversight Board—PCAOB-SOX )and private
companies (Auditing Standard Board—ASB-
AICPA).
Learning Outcome/Assessment
“How will I assess the stated learning objective?”
1) Test questions that require the students to compare
and contrast ethical and unethical behaviors.
2) Test their understanding through world problems
so that they can master the purpose and content of the
AICPA Code of Professional Conduct.
3) Test their understanding, interpretation,
requirements and enforcement mechanisms as relate
to the Code of Professional Conduct through Multiple
Choices and word problems.
1) Test questions that require the students to
recognize, compare and contrast the two broad
differences –basic skills.
2) Required them to identify and negotiating conflict
resolutions between internal and external auditors by
interpreting and analyzing dilemmas in hypothetical
cases using exercises and word problems—thinking
skills.
3) Present information through cases and problems to
showcase the decision-making skills in identifying
the entities and the standard setting authorities. The
students will use Microsoft Excel for spreadsheets
(mathematical calculations), Microsoft Word for
written memos and conclusions to submit their work
performed and to document their research using the
Internet (research about the industry) writing
proficiency skills, technologies skills, problem-
solving skills.
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3) Students will display understanding the auditor
responsibilities as applicable to Audit Attestation
and Assurance Services
4) Clearly understand that the reason for the audit is
to add credibility to management assertions. Often
there is an adversarial relationship between the
auditor and management. The “Professional
Skepticism” concept plays a vital role throughout the
field work, the accumulation of evidence and the
rendering of an opinion.
1) Test questions of real-world situations where the
students can demonstrate appropriate thinking skills,
reasoning skills, and recognition skills to identify
which services are being performed.
2) Ask the students to write short papers comparing
the role of the auditor rendering an opinion and the
auditor at the Oscar ceremony, or at the state lottery,
at e-commerce functions, or compliance of financial
provisions for a loan.
3) Through case discussions and term paper on real-
world company under audit. Writing in the field of
auditing must be succinct. It is easy to write too
much. Students’ writing must reflect that
understanding and they will have a chance to enhance
appropriate techniques and writing skills by doing.
1) Test questions about details relationship between
objectives and accumulations of audit evidence.
2) Test questions about statistical sampling
techniques to determine “When is enough evidence--
enough?” Working papers represent the conventions
of evidence, format, usage, and documentation in the
accounting field.
Some working papers are in the form of spreadsheets,
others are in the form of memos summarizing
discussions and observations. Each student is
required to write one memo about the strength of
evidential matter and conclusions reached.
The conclusions, in the form of written memos, must
be succinct, easy to understand, and supported by
reasonable evidence. Students must be able to
identify elements of evidence that are more important
than others.
Auditors must often balance audit effectiveness with
audit efficiency. Writing the memo will require the
student to maximize resource allocations (time,
money, human resources) in documenting performed
audit procedure.
3) Test questions about the procedures available to
the auditor to achieve desired objectives about
assertions and reasonably assure the stockholders.
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