Escolar Documentos
Profissional Documentos
Cultura Documentos
COURSE INFORMATION
1. Course Number : AUDIT 411
2. Course Name : Assurance Principles, Professional Ethics and Good Governance
3. Course Description : This course is designed to expose students both to the demand for and the
supply of the profession’s flagship service - financial statement audits - and
to the nature of the value-added assurance services which decision makers
demand in the information age. Topics include: nature of the accounting
profession, auditing and assurance fundamentals: relationship among
assurance, attestation, and audit services; consulting vs. assurance services;
types of attestation services (agreed-upon procedures engagement and
review engagement); types of audits (internal, external or financial
statement audits, government audit, and special purpose audits);
relationship of accounting and auditing; other services (operational audits,
compliance audits, and non-attest services); professional standards:
assurance standards and attestation and auditing standards; public sector
regulation of accounting practice and legal liability; the framework of
financial statements auditing: risk-based approach as audit methodology;
audit evaluation and planning, including the concept of risk and materiality;
assessing internal controls, and tests of controls; performance of an audit:
evidence collection, analysis, and substantive tests; reporting: reports on
assurance services, attestation services, and financial statement audits; and
completing the audit including communications with board of directors and
management concerning internal control weaknesses. Also discussed in
detail are the basic professional values and the Code of Ethics for
Professional Accountants and SEC's Code of Corporate Governance.
4. Pre-requisite : Financial Accounting & Reporting, Part 3 (Acctg 6a)
Cost Accounting and Cost Management, Part 2 (Acctg 10a)
Accounting Information System (Comped 411)
5. Co-requisite : None
6. Credit : 6.0 units
7. Class schedule : 6 hours per week
Audtg 411 – Assurance Date Revised: Revision No. 04 Date Effective: Page 1 of 18
Principles, Professional Ethics Oct. 10, 2017 2nd Semester 2017-2018
and Good Governance
College of Accounting Education
AUDIT 411 – Course Outline
Legend: I = Upon attainment of this CO, students will have been introduced to the SO.
E = Upon attainment of this CO, students will have enabled themselves to attain the SO.
D = Upon attainment of this CO, students will have demonstrated partly or fully the SO.
Audtg 411 – Assurance Date Revised: Revision No. 04 Date Effective: Page 2 of 18
Principles, Professional Ethics Oct. 10, 2017 2nd Semester 2017-2018
and Good Governance
College of Accounting Education
AUDIT 411 – Course Outline
Audtg 411 – Assurance Date Revised: Revision No. 04 Date Effective: Page 3 of 18
Principles, Professional Ethics Oct. 10, 2017 2nd Semester 2017-2018
and Good Governance
College of Accounting Education
AUDIT 411 – Course Outline
Assessment Task
CO Theory-based Practice-based Assessment Schedule Coverage
1. Show understanding on the principles, Multiple Choice First Exam *Fundamentals of auditing and
concepts, and processes involved in auditing, Questions/Short assurance services
other assurance and related services as Answer *Introduction to Auditing
required by the engagement standards and *Legal and Professional
other regulatory, legal and ethical Responsibilities
pronouncements.
Second Exam *Audit Acceptance and
Continuance
2. Solve problems commonly faced by Case Analysis First Exam *Legal and Professional
professional accountant in the conduct of Responsibilities
their services through case analysis.
Audtg 411 – Assurance Date Revised: Revision No. 04 Date Effective: Page 4 of 18
Principles, Professional Ethics Oct. 10, 2017 2nd Semester 2017-2018
and Good Governance
College of Accounting Education
AUDIT 411 – Course Outline
3. Prepare appropriate audit report. Case Analysis Eight Exam *Audit Report
Second Exam *Audit Acceptance and Multiple Choice You are expected to show understanding on the standards used in deciding whether to
Continuance Questions/Short accept a new engagement or continue an existing engagement, the necessary control
Answer requirements of an audit firm, and the planning of an audit activity. Included are research
(100% of the exam) articles that you are required to read to critically analyze and appreciate the importance
of these standards in the decision-making process.
Related Standards:
Audtg 411 – Assurance Date Revised: Revision No. 04 Date Effective: Page 5 of 18
Principles, Professional Ethics Oct. 10, 2017 2nd Semester 2017-2018
and Good Governance
College of Accounting Education
AUDIT 411 – Course Outline
Third Exam *Audit Planning Multiple Choice You are expected to show understanding on the standards on risk assessment, materiality,
Considerations Questions/Short response to risk assessment and internal control. This task is designed to assess the
*Study and Evaluation Answer knowledge you have in audit planning. Included are research articles that you are required
of Internal Control
(100% of the exam) to read to critically analyze and appreciate the importance of these standards in the
decision-making process, particularly, audit planning.
Related Standards:
PSA 315 (Redrafted) – Identifying and Assessing the Risks of Material Misstatement
through Understanding the Entity and Its Environment
PSA 320 (Revised and Redrafted) – Materiality in Planning and Performing an Audit
PSA 330 (Redrafted) – The Auditor's Responses to Assessed Risks
PSA 260 (Revised and Redrafted) – Communication with Those Charged with
Governance
PSA 265 (New) - Communicating Deficiencies in Internal Control to Those Charged with
Governance and Management
Fourth Exam *Standards related to Multiple Choice You are expected to show understanding on the standards related to audit planning,
audit planning Questions/Short responsibilities of the auditor to consider fraud, laws and regulation noncompliance,
Answer communicating fraud, analytical procedures, and help of internal auditors and experts.
(70% of the exam) Included are research articles that you are required to read to critically analyze and
appreciate the importance of these standards in the decision-making process, particularly,
audit planning.
Related Standards:
Audtg 411 – Assurance Date Revised: Revision No. 04 Date Effective: Page 6 of 18
Principles, Professional Ethics Oct. 10, 2017 2nd Semester 2017-2018
and Good Governance
College of Accounting Education
AUDIT 411 – Course Outline
Fifth Exam *Gathering and Multiple Choice You are expected show understanding on the standards related to evidence and evidence
evaluating audit Questions/Short gathering and auditing accounting estimates. Included are research articles that you are
evidence Answer required to read to critically analyze and appreciate the importance of these standards.
(100% of the exam)
Related Standards:
PSA 230 (Redrafted) – Audit Documentation
PSA 500 (Redrafted) – Audit Evidence
PSA 501 (Redrafted) – Audit Evidence – Additional Considerations on Specific Items
PSA 505 (Revised and Redrafted) – External Confirmations
PSA 510 (Redrafted) – Initial Audit Engagements-Opening Balances
PSA 520 (Redrafted) – Analytical Procedures
Sixth Exam *Completing the Multiple Choice You are expected to show understanding on the standards related to sampling and wrap-
Audit/Post-Audit Questions/Short up procedures. These standards are applicable in completing audit activities. Included are
Responsibilities Answer research articles that you are required to read to critically analyze and appreciate the
(100% of the exam) importance of these standards.
Related Standards:
PSA 530 (Redrafted) – Audit Sampling
PSA 540 (Revised and Redrafted) – Auditing Accounting Estimates, Including Fair Value
Accounting Estimates, and Related Disclosures
PSA 550 (Revised and Redrafted) – Related Parties
PSA 560 (Redrafted) – Subsequent Events
Audtg 411 – Assurance Date Revised: Revision No. 04 Date Effective: Page 7 of 18
Principles, Professional Ethics Oct. 10, 2017 2nd Semester 2017-2018
and Good Governance
College of Accounting Education
AUDIT 411 – Course Outline
Seventh Exam *Audit Report Multiple Choice You are expected to show understanding on the standards related to audit reporting and
Questions/Short the skill in preparing the appropriate report. These standards are applicable in forming
Answer opinions as part of the audit report. Included are research articles that you are required
(100% of the exam) to read to critically analyze and appreciate the importance of these standards.
Related Standards:
PSA 700 (Redrafted) – The Independent Auditor’s Report on a Complete Set of General
Purpose Financial Statements
PSA 705 (Revised and Redrafted) - Modifications to the Opinion in the Independent
Auditor's Report
PSA 706 (Revised and Redrafted) - Emphasis of Matter Paragraphs and Other Matter
Paragraphs in the Independent Auditor's Report
PSA 710 (Redrafted)– Comparative Information-Corresponding Figures and Comparative
Financial Statements
PSA 720 (Redrafted) – The Auditor's Responsibilities Relating to Other Information in
Documents Containing Audited Financial Statements
Eighth Exam *Other Assurance and Multiple Choice This assessment task is designed for you to show understanding of the principles, theories
Non-Assurance Questions and key concepts in audit, assurance and non-assurance services.
Engagements (60%)
Related Standards:
PSA 800 (Revised and Redrafted) – Special Considerations-Audits of Financial Statements
Prepared in Accordance with Special Purpose Frameworks
PSA 805 (Revised and Redrafted) - Special Considerations-Audits of Single Financial
Statements and Specific Elements, Accounts or Items of a Financial Statement
PSA 810 (Revised and Redrafted) - Engagements to Report on Summary Financial
Statements
Audtg 411 – Assurance Date Revised: Revision No. 04 Date Effective: Page 8 of 18
Principles, Professional Ethics Oct. 10, 2017 2nd Semester 2017-2018
and Good Governance
College of Accounting Education
AUDIT 411 – Course Outline
Audtg 411 – Assurance Date Revised: Revision No. 04 Date Effective: Page 9 of 18
Principles, Professional Ethics Oct. 10, 2017 2nd Semester 2017-2018
and Good Governance
College of Accounting Education
AUDIT 411 – Course Outline
You are to submit the brief report on Monday, following after the 1st examination.
You will be graded according to the criteria set in the rubric.
Fourth Exam *Standards related to Case Study Analysis In this task, you are required to prepare a case analysis of Tower & Tower (Case 6-42 from
audit planning and Decision Principles of Auditing by Whittington/Pany).
(30% of the exam) You will presume the role of peer reviewer of the CPA firm.
The target audience are firm’s Quality Control department.
You need to analyze the situation, determine the root cause and provide recommendation to
the audit team leader to the management of the company
You are required to submit a case analysis pertaining to the case at hand.
You are required to integrate research findings on your case study analysis. (Discussion and
Alternative Courses of Action)
You are to submit the brief report in A4 size bond paper, font style Calibri 11, and 1 ½ spacing.
You are to submit the brief report on Monday, following after the 4th examination.
You will be graded according to the criteria set in the rubric.
Eight Exam *Audit Report Case Study Analysis In this task, you are required to prepare a case analysis given by your teacher.
and Decision You will be graded according to the criteria set in the rubric.
(40% of the exam)
For each of the case analysis component areas (evaluation dimensions) identified below, use the evaluation rubric to assess the work by specifying
a score based on the performance ratings and descriptors delineated in the rubric form and supplying relevant comments in the space provided.
Identification of Issues: This section should describe the managerial, financial, marketing, legal, ethical, economic, international, and social
responsibility/sustainability issues relevant to the case. The section should also include an executive summary that provides an overview of the
key issues and problems that are central to the case.
Connections to Theoretical and Empirical Research: This section should describe the ways in which theoretical and empirical research are related
and can be applied to the central issues and problems in the case.
Audtg 411 – Assurance Date Revised: Revision No. 04 Date Effective: Page 10 of 18
Principles, Professional Ethics Oct. 10, 2017 2nd Semester 2017-2018
and Good Governance
College of Accounting Education
AUDIT 411 – Course Outline
Analysis and Evaluation: This section should present an analysis of the central issues and problems in the case. This analysis should be informed
by relevant theory and empirical data and should lead to a set of conclusions that are supported by appropriate evidence.
Alternative Courses of Action: This section should present actions for dealing with the central issues and problems in the case. These action plans
should flow from the previous analysis and evaluation and should be appropriately justified.
Evaluation of Consequences: This section should provide a description and analysis of the expected results from implementing the proposed plans
of action as previously specified.
Performance Rating
Evaluation
Score
Dimensions Beginning Competent Accomplished
1 2 3 4 5 6
Case-Study Component Areas - Grading Criteria
Does not recognize the problems or With a few exceptions, identifies and Presents accurate and detailed
issues of the case, or identifies outlines the principal problems and issues descriptions of the problems and issues
problems and issues that are not in the case; demonstrates an acceptable central to the case; provides a well-
based on facts of the case; displays understanding of the company’s issues, focused diagnosis of strategic issues and
little understanding of the issues, key current situation, and strategic key problems that demonstrates an
Identification of problems, and the company’s present challenges; executive summary provides excellent grasp of the company’s present
Issues situation and strategic challenges; an adequate overview of the case issues situation and strategic challenges;
executive summary does not present a and problems; summary is missing a few descriptions are compelling and
clear overview of the case issues; main minor points, but meets expectations insightful; provides a thorough and
points are not outlined, or cannot be effective executive summary
understood
Audtg 411 – Assurance Date Revised: Revision No. 04 Date Effective: Page 11 of 18
Principles, Professional Ethics Oct. 10, 2017 2nd Semester 2017-2018
and Good Governance
College of Accounting Education
AUDIT 411 – Course Outline
Makes little or no connection between Identifies and outlines connections Makes appropriate, insightful, and
the issues and problems in the case between some of the issues and problems powerful connections between the
Connections to and relevant theoretical and empirical in the case and relevant theoretical and issues and problems in the case and
Theoretical and research, or the connections identified empirical research; the connections relevant theory and empirical data;
Empirical Research are weak or inaccurate in many identified are adequately elucidated effectively integrates multiple sources of
respects knowledge with case information
Simply repeats facts identified in the Provides an acceptable analysis of most of Presents a balanced, in-depth, and
case and does not discuss the the issues and problems in the case; in critical assessment of the facts of the
relevance of these facts; fails to draw most instances, analysis is adequately case in light of relevant empirical and
conclusions, or conclusions are not supported by theory and empirical data; theoretical research; develops insightful
Analysis and
justified or supported; does not appropriate conclusions are outlined and and well-supported conclusions using
Evaluation
present relevant research or data; summarized reasoned, sound, and informed
shows no critical examination of case judgments
issues
Has difficulty identifying alternatives Outlines and summarizes some Effectively weighs and assesses a variety
and appropriate courses of action; few alternative courses of action to deal with of alternative actions that address the
if any alternatives are presented, most of the issues and problems in the multiple issues central to the case;
Alternative Courses infeasible actions are proposed, action case; in most instances, proposed action proposes detailed plans of action; action
of Action plans are not supported, or actions do plans are outlined, are feasible, and based plans are realistic and contain thorough
not address the key issues and on relatively sound theory and evidence and well-reasoned justifications
problems in the case
Displays limited awareness and/or Demonstrates acceptable analysis of the Objectively and critically reflects upon
understanding of the consequences of results of proposed action plans; alternative plans of action; effectively
action plans; fails to identify adequately outlines and summarizes the identifies, thoroughly discusses, and
implications and consequences of implications and consequences resulting insightfully evaluates the implications
Evaluation of
proposed action plans; identified from alternative courses of action; with a and consequences resulting from the
Consequences
outcomes do not follow from few minor exceptions, identified proposed action plans; identified
proposed action plans, or outcomes consequences of action plans are related consequences are tied to the key issues
are not related to issues in the case to key issues in the case central to the case
Audtg 411 – Assurance Date Revised: Revision No. 04 Date Effective: Page 12 of 18
Principles, Professional Ethics Oct. 10, 2017 2nd Semester 2017-2018
and Good Governance
College of Accounting Education
AUDIT 411 – Course Outline
TIME
TOPICS FOR SECOND EXAMINATION TLA Required Readings
FRAME
Week 4 Focus on the learner Group dynamics * Drira, M. (2013). AUDITOR'S
to Legal and Professional Responsibilities Concept mapping CLIENT ACCEPTANCE AND
Week 5 Code of Ethics for Professional Research article CONTINUANCE DECISIONS: A
Accountants in the Philippines reading/discourse RESEARCH NOTE. Paper presented
Oral recitation at the , 8(1) 512-516. Retrieved
Audit Acceptance and Continuance
Philippine Standard on Quality Control from
(PSQC) 1 (Redrafted) - Quality Controls http://search.proquest.com/docvie
for Firms that Perform Audits and w/1353354061?accountid=31259
Reviews of Financial Statements, and * Drira, M. (2013). DIFFERENCES
Other Assurance and Related Services BETWEEN AUDITOR'S CLIENT
Engagements
ACCEPTANCE AND CONTINUANCE
Agreeing the Terms of Audit
DECISIONS. Paper presented at
Engagements (PSA 210)
Quality Control for Audits of Historical the , 8(2) 223. Retrieved from
Financial Statements (PSA 220) http://search.proquest.com/docvie
Planning an Audit of Financial w/1434203685?accountid=31259
Statements (PSA 300)
TIME
TOPICS FOR THIRD EXAMINATION TLA Required Readings
FRAME
Audtg 411 – Assurance Date Revised: Revision No. 04 Date Effective: Page 13 of 18
Principles, Professional Ethics Oct. 10, 2017 2nd Semester 2017-2018
and Good Governance
College of Accounting Education
AUDIT 411 – Course Outline
Audtg 411 – Assurance Date Revised: Revision No. 04 Date Effective: Page 14 of 18
Principles, Professional Ethics Oct. 10, 2017 2nd Semester 2017-2018
and Good Governance
College of Accounting Education
AUDIT 411 – Course Outline
TIME
ADDITIONAL TOPICS FOR FIFTH EXAMINATION TLA Required Readings
FRAME
Week 10 Focus on learning Lecture *Gillett, P. R., & Peytcheva, M.
Gathering and evaluating audit evidence Oral recitation (2011). Differential evaluation of
to
Audit Documentation (PSA 230) Concept Mapping audit evidence from fixed versus
Week 11 Audit Evidence (PSA 500) Cooperative Learning sequential sampling. Behavioral
Audit Evidence – Additional
Research in Accounting,23(1), 65-
Considerations on Specific Items (PSA
501) 85. Retrieved from
External Confirmations (PSA 505) http://search.proquest.com/docvie
Initial Audit Engagements-Opening w/849618896?accountid=31259
Balances (PSA 510) *Audit evidence. (2006). Journal of
Analytical Procedures (PSA 520) Accountancy, 201(5), 113-116.
Auditing Accounting Estimates, Including Retrieved from
Fair Value Accounting Estimates, and http://search.proquest.com/docvie
Related Disclosures (PSA 540)
w/206781286?accountid=31259
*Baglia, D. S. (2000). The effects of
Audit Sampling (PSA 530)
auditor type, auditor experience
Basic Audit Sampling Concepts
level, and audit firm structure on
Audit Sampling for Tests of Controls
Audit Sampling for Substantive Tests audit evidence decisions: An
empirical examination under cases
of both high and low fraud
risk (Order No. 9989460). Available
from ProQuest Central.
(304644475). Retrieved from
http://search.proquest.com/docvie
w/304644475?accountid=31259
TIME
FRAME ADDITIONAL TOPICS FOR SIXTH EXAMINATION TLA Required Readings
Audtg 411 – Assurance Date Revised: Revision No. 04 Date Effective: Page 15 of 18
Principles, Professional Ethics Oct. 10, 2017 2nd Semester 2017-2018
and Good Governance
College of Accounting Education
AUDIT 411 – Course Outline
TIME
FRAME ADDITIONAL TOPICS FOR EIGTH EXAMINATION TLA Required Readings
Audtg 411 – Assurance Date Revised: Revision No. 04 Date Effective: Page 16 of 18
Principles, Professional Ethics Oct. 10, 2017 2nd Semester 2017-2018
and Good Governance
College of Accounting Education
AUDIT 411 – Course Outline
Assurance Engagements other than Audit *Szora, A. T., & Dobra, I. B. (2010).
and Review (PSAE) CONSIDERATIONS ON AUDIT OF
Related Services Engagements (PSRS) GROUP FINANCIAL
STATEMENTS. Annales Universitatis
Apulensis : Series
Oeconomica, 12(1), 314-324.
Retrieved from
http://search.proquest.com/docvie
w/845883561?accountid=31259
12. TEXTBOOK :
a. Standards downloadable from http://www.aasc.org.ph/downloads/download-home.php
b. Code of Ethics for the Professional Accountants and RA 9298 downloadable from
http://picpa.com.ph/attachment/21720171215650.pdf
REFERENCES:
a. Arens, Alvin A. (2014). Auditing and Assurance Services: An Integrated Approach. 15th Edition. Upper Saddle
River, NJ: Printice Hall.
b. Dr. Mark Juber and Dr. John Peterson (2015). Accounting Ethics. New York: Delve Publishing
c. Stefano, Denise M. (2015). 500 auditing and attestation questions for the CPA exam. New York, NY :MCGraw-
Hill Education
d. Kemp, Stephanie (2013). Auditing, assurance and ethics handbook 2013: incorporating all the standards as at 1
December 2012. Milton, Qld: John Wiley & Sons
e. Cabrera, Ma. Elenita (2013). Public Accountancy Profession: Assurance Principles, Professional Ethics and Good
Governace. Manila: GIC Enterprises
f. Flood, Joanne (2015). Wiley Practitioner's Guide to GAAS 2013 Covering all SASs, SSAEs, SSARSs, and
Interpretations (10th Edition). Wiley.
http://site.ebrary.com/lib/uniofmindanao/docDetail.action?docID=10639284
Assessment Methods
Weights
EXAMINATIONS
A. Exam 1 – 7 30%
B. Final Exam – MCQ * / Performance Task 30%
CLASS PARTICIPATIONS
C. Quizzes 10%
D. Research 15%
E. Oral recitation 10%
F. Assignments 5%
Total 100%
*The final examination is a pre-board examination which is conducted every end of the 2 nd term. This is a
comprehensive examination which overs four (4) clustered subjects in the CPA licensure examination – Theory
of Accounts (TOA), Practical Accounting 1 (P1), Practical Accounting 2 (P2), and Auditing Theory (AT). The final
examination grade is computed as follows: 60% - AT; 40% - average of TOA, P1, and P2.
Audtg 411 – Assurance Date Revised: Revision No. 04 Date Effective: Page 17 of 18
Principles, Professional Ethics Oct. 10, 2017 2nd Semester 2017-2018
and Good Governance
College of Accounting Education
AUDIT 411 – Course Outline
JADE SOLANA, CPA , MBA (CAR) LORD EDDIE I. AGUILAR, CPA, MBA
Program Chair
LORD EDDIE I. AGUILAR, CPA, MBA
VIRGINIA I. CAINTIC
AVP – LIC
Audtg 411 – Assurance Date Revised: Revision No. 04 Date Effective: Page 18 of 18
Principles, Professional Ethics Oct. 10, 2017 2nd Semester 2017-2018
and Good Governance