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Credit Value: 3.0
Credit Value Notes: N/A
Effective: Winter 2015
Prerequisites:
(ACCG36913)
Corequisites:
N/A
Equivalents:
N/A
Pre/Co/Equiv Notes: N/A |
Course
Name (short): Auditing 2
School: All Sheridan Schools
Program(s):
Business Admin Accounting
Program Coordinator(s):
Sally Mitzel
Course Leader or Contact: Ernie Kerst
Originator: Lesley Rumsby
Designate: Lesley Rumsby
Version: 16.0
Status: Approved - Under Rev (AREV)
Calendar Description
In Auditing 2 students build upon the theoretical knowledge gained in
Auditing 1 by applying auditing standards and techniques.
Topics include the study and evaluation of internal control,
auditing in a computerized environment and audit sampling. The
emphasis in this course is the application of auditing concepts to
audit revenues, purchases, production, payroll, finance and
investment cycle. The course ends with the completion of the audit
and the basic preparation of working papers.
Typical Instructional Format
Mobile
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42.0 |
Total hours: |
42.0 |
Courses may be offered in other formats.
Section I Notes:
A minimum grade of "B" (70%) in each of ACCG36913 and ACCG31709
allows students a course exemption in Auditing 1 of the CGA program.
The CGA Auditing 1 exam must be successfully challenged to obtain the
full exemption.
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Detailed Description
In Auditing 2 students build upon the theoretical knowledge gained in
Auditing 1 by applying auditing standards and techniques. Topics
include the study and evaluation of internal control, auditing in a
computerized environment and audit sampling. The emphasis in this
course is the application of auditing concepts to audit revenues,
purchases, production, payroll, finance and investment cycle. The
course ends with the completion of the audit and the basic
preparation of working papers. Students will learn by participating
in class lectures, group discussions, weekly assignments and short
reports based on research of current topics in the media.
Program Context
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Business Admin Accounting |
Program Coordinator: Sally Mitzel |
This is a core course in the
third year of the Accounting
program which builds on the
courses covered in the second
year program.
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Course Critical Performance and Learning Outcomes
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Critical Performance
By the end of this course, students will have demonstrated the
ability to design tests based on audit objectives for financial
statement audits.
Learning Outcomes
To achieve the critical performance, students will have demonstrated
the ability to:
1. Explain the purpose and advantages of evaluating a client's
internal control
2. Apply the seven internal control objectives and weaknesses,
explain reasonable assurance, and cost/benefit aspects of audit
tests.
3. Compare with examples auditing around, through, and with the
computer
4. Compare statistical vs. non-statistical (judgmental) sampling
examples for each
5. Prepare a basic audit program for tests of controls and tests of
balances.
6. Describe the transactions, documents, confirmations, controls,
and accounts included in the sales cycle,
7. Describe transactions, documents, controls, and accounts of the
acquisition cycle
8. Prepare audit tests of control & balances for purchases and
disbursements transactions
9. Explain procedures for the inventory count observation and
cut-off
tests
10. Describe audit tests, transactions, documents, accounts, and
controls of the a) production cycle, b) payroll cycle, c) finance
& investment cycle.
11. Prepare analytical and detail audit tests for overall revenue and
expense accounts
12. Explain the concepts for subsequent events, contingent
liabilities, review of working papers & discovery of errors
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Evaluation Plan
Students demonstrate their learning in the following ways:
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Evaluation Plan
Students demonstrate their learning in the following ways:
Test 1 Chapters 9,10,11 - 20%
Consists of multiple choices, short answers, detail
descriptions/explanations
Test 2 Chapters 12,13,14 - 20%
Consists of multiple choices, short answers, detail
descriptions/explanations
Comprehensive final exam Ch. 9 to 15 - 40%
Consists of multiple choices, theory questions, detail explanations &
analysis questions
Assignments working papers and reports - 20%
Total Marks - 100%
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Provincial Context
The course meets the following Ministry of Training, Colleges and Universities requirements:
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Essential Employability
Skills
Essential Employability Skills emphasized in the course:
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Communication
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Critical Thinking & Problem Solving
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Interpersonal
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Numeracy |
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Information
Management |
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Personal
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Notes: N/A
Prior Learning Assessment and Recognition
PLAR Contact: Multiple PLA Contacts
Students may apply to receive credit by demonstrating achievement
of the course learning outcomes through previous life and work experiences.
This course is eligible for challenge through the following
method(s):
Challenge Exam |
Portfolio |
Interview |
Other |
Not Eligible for PLAR |
X |
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Notes: N/A
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Some details of this outline may change as a result of circumstances such as weather cancellations, College and student activities, and class timetabling.
Effective term: Winter 2015
Professor: Multiple Professors
Textbook(s): Textbooks and Instructional Materials
Smieliauskas and Bewley, Auditing: An International Approach,6th
McGraw-Hill Ryerson
Applicable student group(s): Business Administration - Accounting
Course Details:Module 1 (LO# 1,2,3) Control Evaluation and Testing
- Explain the auditor's need to understand the client's system of
internal control
- Understand and explain the purpose of evaluating a client's
internal control
- Describe and apply the seven internal control objectives
- Describe advantages & disadvantages of 3 methods of describing
client's system of internal control
- Identify weaknesses in internal control and audit tests of control
(compliance tests)
- Outline the auditor's responsibilities when fraud is detected
- Explain reasonable assurance and the cost/ benefit aspects of
testing internal control
- Compare with examples auditing around, threw, and with the computer
- Describe the problems of control risk assessment in a small
business
Text Reference: Chapter 9
________________________________________
Module 2 (LO# 4) Audit Sampling
- Distinguish audit sampling vs. non-sampling work
- Compare statistical vs. non-statistical (judgemental) sampling
with examples for each
- Differentiate between sampling and non-sampling risk
Text Reference: Chapter 10
________________________________________
Module 3 (LO# 5)Revenues, Receivables, and Receipts Process
- Prepare a basic audit program for tests of controls
- Develop a basic audit program for tests of balances
Text Reference: Chapter 11
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Module 4 - Review for test 1
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Test 1 (Chapters 9,10,& 11) 20%
________________________________________
Module 5 (LO# 7,8,9) Purchases, Payables, Payments Cycle
- Describe the transactions, documents, controls, and accounts
included in the SAES cycle
- Outline examples of tests of control
- Design audit tests to detect errors
- Explain the importance of the "existence" objective for the
assets of the client
- Explain the importance and procedures to prepare bank and
receivables confirmations
- Design substantive audit tests for the accounts in the sales
cycle
- Describe 2 common frauds involving receivables and cash
accounts
- Describe transactions, documents, controls, and accounts of
the acquisition cycle
- Prepare audit tests of control for purchases and
disbursements transactions
- Design audit procedures for detecting errors and
irregularities
- Explain the importance of completion objective for
liabilities and related audit tests
- Explain procedures for the inventory count observation and
cut-off tests
Text Reference: Chapter 12
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Module 6 (LO# 10) Production and Payroll Process
- Describe the transactions, documents, accounts, and controls
of the production cycle
- Outline control tests for production transactions
- Design audit tests to detect errors and irregularities in
the Production process
- Describe the transactions, controls, accounts, and documents
in the payroll cycle
- Design control tests and tests of balances for the payroll
cycle
Text Reference: Chapter 13
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Module 7 (LO# 10) Finance and Investment Process
- Describe transactions, controls, accounts, and documents of
the finance & investment cycle
- Design tests of control for the liabilities, equity, and
investment transactions
- Design tests to detect errors and other irregularities
- Prepare audit tests for overall revenue and expense accounts
Text Reference: Chapter 14
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Module 8 Review for Test 2 Chapters 12,13,14
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Test 2 (Module 5 to 8) 20%
________________________________________
Module 9 (LO# 12) Completing the Audit
- Describe analytical procedures for the completion of the
audit
- Explain the use of various letters and reports in completing
the audit
- Explain and apply the concepts for subsequent events and
contingent liabilities
- Explain the actions required for discovery of errors after
the audit is completed
- Describe the actions for review of working papers
Text Reference: Chapter 15
Assignment is due
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Module 10 Review from Chapters 9 to 15
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Comprehensive Final Exam 40%
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Academic Honesty
The principle of academic honesty requires that all work submitted for evaluation and course credit be the original,
unassisted work of the student. Cheating or plagiarism including borrowing, copying, purchasing or collaborating on
work, except for group projects arranged and approved by the faculty member, or otherwise submitting work that is not
the student's own violates this principle and will not be tolerated. Instances of academic dishonesty, including
assisting another student to cheat, will be penalized as detailed in the Student Handbook.
Students who have any questions regarding whether or not specific circumstances involve a breach of academic
honesty are advised to discuss them with the faculty member prior to submitting the assignment in question.
Discrimination and Harassment
Sheridan is committed to provide a learning environment that respects the dignity, self esteem and fair treatment
of every person engaged in the learning process. Behaviour which is inconsistent with this principle will
not be tolerated. Details of Sheridan's policy on Harassment and Discrimination are available in the Student Handbook.
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