Lambuth University

School of Business & Economics

Fall Semester, 2007

 

ACC 4153

Principles & Theory of Auditing I

Thursday 6:00 – 8:45 pm

Varnell-Jones Hall – Room #300

COURSE SYLLABUS

 

Instructor:       Dan Ashton                              Office Hours:  Mon     8:00 – 9:30, 12:30 – 1:00

Office:             Varnell-Jones #304                                          Tues     11:00 – 2:30                                                                                                                                Wed     8:00 – 9:30, 11:00 – 1:00

                                                                                                 Thru    12:00 – 3:00 pm          

                                                                                                 Fri         8:00 – 9:00 am

Phone:              425-3219

E-mail: ashton@lambuth.edu                                      

 

 

Required Material:   

 

            Texts:  Arens, Elder & Beasley, Auditing and Assurance Services: an Integrated Approach, 12th edition (Prentice-Hall, Inc., Englewood Cliffs, N.J. 2003).  Contemporary Auditing, Real Issues & Cases, 6th edition, Thomson Southwestern. 

 

                       

Purpose of the Course:

            The purpose of the course is to provide a comprehensive introduction to auditing theory, standards and the application of procedures used by independent Certified Public Accountants to render an opinion on the financial statements of the entity being examined.  The course will cover the ethical environment of the independent auditor, the nature of the auditing standards and procedures underlying the audit opinion.  And the various forms of the resulting audit report.  This course will also emphasize the integration of generally accepted accounting principles and the application of statistical sampling methods as they pertain to the auditing process.

 

Course Objectives:

 

  The following are broad objectives for this course. 

1.         Integrate and apply knowledge acquired in prior accounting courses to the practice of auditing.

            2.         Explain the role of the independent auditor in our economy.

3.         Interpret and explain the auditing process both in terms of (a) the relationship between specific audit objectives, audit procedures and the evaluation of audit evidence, and (b) the underlying rationale for those relationships.

4.         Interpret and explain the message contained in the independent auditor’s report in terms of the responsibilities assumed and those not assumed by the auditor.

            5.         Demonstrate competence for all professional examinations taken after graduation. 

 

Prerequisites:

              Accounting3113 (Intermediate Accounting I) or concurrently enrolled is required.  Other recommended courses include CIS 1503 (Survey of Business Software) and ECON 2033 (Principles of Macroeconomics) both of which should prove helpful in the comprehension and preparation for the class requirements.

            Should you doubt your background in meeting these requirements, please see me privately as early as possible in the term, so that we may assess your individual situation.

 

 

Classroom Expectations

Preparation:

              Classes will be conducted on a lecture-discussion and problem-solving basis. Lectures will introduce the topic and review aspects of the assigned material.  However, much of the class time will center on class discussion.  A key element to understanding the material will be how conscientiously the student studies the reading assignments and prepares assignments before class.

              Lectures and class discussions will be based upon the assumption that all assigned work and reading have been completed prior to class.  When a Reading is assigned, it is essential that advance preparation includes not only reading, but identification of key facts and major questions posed by the assignment and the written requirement noted.

 

Attendance:

Regular attendance is necessary for satisfactory performance in this course.  While it is understandable that absence is occasionally unavoidable, each student is entirely responsible for making up any missed assignments or lecture notes. Excused absences will include 1. Statement from a doctor 2.  Statement from school nurse 3.  Official school events 4.  Family emergency.  No absence will be excused until a memo is provided explaining why it should be excused.  More than one unexcused absences will result in your final grade being reduced by one letter grade.  It is very important to prepare for and participate in class discussion.  This interaction is critical to full development and understanding of many of the topics considered in this course.

 

Term Paper:

             Each student will be required to write a, 10 page minimum, term paper during the semester.  The term paper will be on the Sarbanes-Oxley Act of 2002.  The term paper will count 10% of your final grade. 

 

Class presentation:

            Each student will be required to prepare and present a 10 to 15 minute Power Point presentation to the class on an audit topic agreed upon by the student and instructor. The presentation will count 10% of your final grade. 

 

 

 

Quizzes/Homework:

An on-line quiz will be completed before each chapter is covered in class.  Quizzes may not be made up for any reason.  Homework will be assigned for each chapter and will be required to be turned the following week.  Homework will be covered in class as part of our class discussion.  Quizzes/Homework will count 10% of your final grade. 

 

Exams:

              There will be two exams during the term when the appropriate point in material content is reached.  The third exam will be given at the time appointed by the final examine schedule for the School of Business.  The exams will cover assigned text material and will be detailed well in advance of the test dates.  To assure academic integrity and fairness to all, make-up exam will not be given.  Should you miss an exam for an excused reason only; the third exam will be re-weighted to count for the previously missed exam.  If you know ahead of time that you are going to miss an exam, arrangements may be made to take the exam early.  The three exams will count 70% of your final grade. 

 

 

Grading:

              Grades will be based upon individual relative performance to that of the class.  Components of this evaluation will be based upon the following:

 

                                                Exams (3)                                             70%

                                                Quizzes/Homework                              10%                                        

                                                Term Paper                                          10%

 Presentation                                         10%

                                                            Total                                        100%

Grading Scale:

A = 90 – 100%

B = 80 – 89%

C = 70 – 79%

D = 60 – 69%

F = below 60%

**10-point scale

 

Academic Honesty:

I am a strong supporter of academic honesty.  ANY CHEATING OBSERVED WILL RESULT IN AN AUTOMATIC FAILURE OF THE COURSE.  I am required to report any incidence of cheating to the school head and academic dean.

Statement of Integrity:

“Coercion of faculty to change grades is strictly prohibited; grade change requests must follow University established guidelines; refer to the Lambuth Handbook for details; any grade change must be supported by adequate and substantial documentation.  Lambuth University will not lessen its academic standards for any reason.”

 

 

 

Learning Accommodations:

Learning accommodations will be made for students who have documentation on file with the Director of Student Disability Services.  For those students, the following accommodations maybe made if warranted:

1.      Extra time to for test taking;

2.      Allow the use of a tape recorder to record class discussions;

3.      Allow students to have someone else take notes on their behalf.

No other accommodations will be guaranteed, but other accommodations will be considered.  The instructor will make the final decision on other accommodations.  The instructor will work with the Office of Student Success and Retention to help any student find a tutor. 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Written Case Assignments:

             Cases are assigned from the casebook by Michael Knapp, Contemporary Auditing Issues and Cases, 6th edition (West Publishing Company, Minneapolis, Minn., 2004).   The purpose of these assignments is to expose students to situations in which auditors failed, for various reasons, to satisfy their professional responsibilities.  All assignments deal with cases which are derived from actual event or situations.   While the text by Arens, Elder & Beasley is the best text that I have found in providing auditing theory, standards and the application of procedures, you will learn much more by applying this material in real audit settings.  Keep in mind as you read these cases that the purpose of these assignments is not to criticize individuals audit firms or their clients, but rather to provide students the opportunity to learn from these ‘real-world’ situations.  By semester’s end some relevant insight and knowledge should be gained by this investigation and approach in application.

              Case assignment will be collected for evaluation at the beginning of class on the date due.  Late work will not be accepted.  The cases will be evaluated and returned.   All case questions are to be answered clearly and in a well-organized manner.  All assignment must be type (double-spaced), and limited to no more than four pages, unless instructed otherwise.              Several questions in the cases involve accounting theory/practice that should be covered in most Intermediate Accounting textbooks.   Other questions may involve auditing issues not directly discussed in class.  In either case, you are expected to research the case questions to arrive at Learning Accommodations:

Learning accommodations will be made for students who have documentation on file with the Director of Student Disability Services.  For those students, the following accommodations maybe made if warranted:

4.      Extra time to for test taking;

5.      Allow the use of a tape recorder to record class discussions;

6.      Allow students to have someone else take notes on their behalf.

No other accommodations will be guaranteed, but other accommodations will be considered.  The instructor will make the final decision on other accommodations.  The instructor will work with the Office of Student Success and Retention to help any student find a tutor. 

Sound, logical, well-reasoned answers.  This allows the student an opportunity to apply accounting and other business knowledge they have acquired to real auditing dilemma.