Course Name (short): Advanced Auditing
School: Business
Program(s): Bach Bus Admin Market Manage, Bach Business Admin Accounting, Bach Business Admin Finance, Bach Human Resources, BachBus Admin Spply Chain Mgmt
Program Coordinator(s): Tba
Course Leader or Contact: Tba
Originator: Lynn Easson-Irvine
Designate: Jessica MacDougall
Version: 1.01
Status: Approved (APPR)

Calendar Description
Students examine advanced principles and procedures of external auditing, building on the knowledge acquired previously. Topics include engagement planning, audit sampling, substantive testing, professional, legal and ethical environment of analyzing and assessing risk factors, interpreting and documenting results.

Typical Instructional Format

Courses may be offered in other formats.

Section I Notes: This course will be delivered in hybrid format.

Detailed Description
Students examine advanced principles and procedures of external auditing, building on the knowledge acquired previously. Topics include engagement planning, audit sampling, substantive testing, professional, legal and ethical environment of analyzing and assessing risk factors, interpreting and documenting results. Students examine audits designed for special circumstances, such as consolidated financial statements, not-for-profit and public sector audits. Additionally, the student examines some of the changes facing the auditing profession. Through interactive lectures, class discussions, problem-solving activities, case analysis, and practice-based projects students develop competencies in evaluating and advising on accounting issues in accordance with professional standards.

Program Context

 Critical Performance
By the end of this course, students will have demonstrated the ability
to report results of audit findings for a variety of organizations.

Learning Outcomes
To achieve the critical performance, students will have demonstrated
the ability to:
1.  Appraise the theory and procedures surrounding the audit assurance
    process.
2.  Analyze materiality to determine the amounts and types of errors
    that would constitute a substantial error when reporting financial
    results.
3.  Develop an overall audit strategy when planning an assurance   
    audit.
4.  Analyze the internal controls of a company.
5.  Evaluate audit sampling to ensure the absence of a non-biased
    sample through analytical procedures.
6.  Test the feasibility of financial statement balances through
    financial statement analysis.
7.  Select accounts for substantive testing and evidence collection.
8.  Evaluate the sufficiency and appropriateness of audit evidence.
9.  Evaluate the reporting issues to determine sufficiency of the
    reporting details.
10. Plan the audit of consolidated, not-for-profit and public sector
    organizations.
11. Demonstrate professional behaviour including:
    a. meet due dates
    b. produce professional quality assignments
    c. use reference materials responsibly

Mid-term test		       30%
Assignments/Reports  (3 x 5%)  15%
Comprehensive Audit Case       15%
Comprehensive final exam       40%
Total			      100%

Assignments and case study may be assigned to be completed on an
individual or group basis and to be completed in and out of class as
determined.

In addition to achieving a minimum 50% overall grade, a student must
have a combined average of at least 50% on the non-group components of
the evaluation plan in order to receive credit for this course.

Textbook(s): Smieliauskas, W. J., & Bewley, K. (2013). Auditing: An
International Approach (6th ed.). McGraw-Hill Ryerson.

Recommended Reading:
CPA Canada Handbook: Canadian Auditing Standards (CAS), Other Canadian
Standards (including Public Sector PS 5000 - PS 6400), Assurance and
Related Services Guidelines (AuG) - CPA Canada 

Assigned readings from CPA Magazine; Other     

Audit cases as selected by instructor

Note: Learning Outcome 11 will be inherent and apparent within each
evaluation.

Module 1: The Assurance Process
1. Appraise the value-added (economic purpose) by (of) assurance  
   services 
2. Analyze the expectation gap and auditor independence
3. Evaluate the role of the external auditor, the audit risk model and
   audit liability 
4. Discuss the standard-setting process for the current regulatory
   framework and the implications of pending changes in assurance
   standards including: 
   a. The general assurance framework
   b. Professional standards and ethics
   c. Documents for comment/exposure draft
   d. Directions in assurance research 
5. Discuss the regulatory process in Canada (CSA - Canadian Securities
   Administrators) and the overall implications of regulatory 
   reporting and assurance 
6. Discuss the mechanism for compliance including the role of
   regulatory bodies in good governance
7. Evaluate the role of the audit committee in governance including
   audit report follow-up/decisions made
Learning Outcome(s): 1

Module 2: Advanced Topics in Engagement Planning
1. Assess issues related to the acceptance and continuance of audit
   engagements (CAS 210) 
2. Assess issues related to audit planning (CAS 300) including:
   a. First-time engagements and opening balances (CAS 510)
3. Assess the entity's risk assessment process including:
   a. Understanding the entity and its environment
   b. Going concern (CAS 570) 
4. Analyze materiality (CAS 320)
5. Assess the risk of material misstatement at both the financial
   statement and assertion level (CAS 315) 
6. Address the professional, legal and ethical environment in the
   analysis and assessment of risk factors
7. Develop the overall audit strategy and audit plan (CAS 230)
8. Other engagement planning topics 
Learning Outcome(s): 2, 3

Module 3: Other Practical Considerations
1. Assess other practical considerations related to audit planning
   (CAS 300) including:
   a. Small business audit issues
   b. Roles of audit team members
   c. Team and client relations
   d. Meeting management
   e. Other practical considerations 
Learning Outcome(s): 1, 3
Assignment/Report (1) 5%

Module 4: Advanced Topics in Internal Controls
1. Analyze internal controls, the information system and related
   processes:
   a. Objectives of internal controls
   b. The control environment and risk assessment process (CAS 260 & 
      CAS 265) 
   c. Control activities and monitoring of controls
   d. Tests of controls (CAS 330)
   e. Information systems (IT) and controls 
2. Develop procedures for tests of controls using computer-assisted
   audit techniques 
3. Evaluate the management of internal controls (CAS 402)
   a. Relying on service auditor's reports
4. Develop audit procedures for the use of work of internal audit (CAS
   610)
5. Optimizing the use of resources
6. Other advanced topics in internal controls  
Learning Outcome(s): 3, 4 

Module 5: Advanced Topics in Audit Sampling 
1. Develop and evaluate the sampling approach (CAS 530)
   a. Sampling concepts
   b. Attribute sampling
   c. Dollar-unit sampling
   d. Evaluation of statistical sampling
   e. Other advanced sampling topics for tests of controls and tests 
      of balances 
Learning Outcome(s): 5

Module 6: Advanced Topics in Substantive Testing and Audit Evidence
1. Evaluate the impact of fraud considerations in substantive testing
   and audit evidence (CAS 240)
2. Test the feasibility of financial statement balances through
   financial statement analysis (including the use substantive   
   analytics)(CAS 520)
3. Develop basic audit procedures and work plan for:
   a. Accounts for substantive testing and evidence collection (CAS 
      330)
   b. Special considerations in obtaining audit evidence including:
      i. Opening balances (CAS 510), estimates, fair value 
         representations (CAS 540), related parties (CAS 550), 
         subsequent events (CAS 560), written representations (CAS 
         580), group financial statements (CAS 600), use of an expert 
         or specialist (CAS 620), comparative information (CAS 710)
4. Develop procedures using data-oriented CAAT's (computer-assisted
   audit techniques) in substantive testing
5. Evaluate the sufficiency and appropriateness of evidence (CAS 500,
   501) 
6. Document work performed (CAS 230), draw conclusions and communicate
   results (CAS 450)
   a. Aggregate misstatements and perform an overall evaluation of   
      audit evidence   
   b. Analyze materiality to determine the amounts and types of errors
      that would result in a substantial error for the reporting of
      financial results
Learning Outcome(s): 2, 6, 7, 8 

Mid-Term Exam (Module 1 - 6) 30%

Module 7: Advanced Topics in Reporting Issues
1. Evaluate reporting issues to determine the sufficiency of the
   reporting details, draw conclusions and communicate audit results  
   (CAS 700, 705, 706) for:
    a. Significant matter paragraphs (emphasis of matter and other 
       matter)
    b. Subsequent events and subsequent discovery of a material  
       misstatement 
    c. Comparative information 
    d. Foreign reporting
    e. Canada - U.S. differences
    f. Other items requiring professional judgment 
    g. Annual reports and the composition of the MD&A
    h. Communication with those charged with governance  
       i. Other advanced reporting topics 
Learning Outcome(s): 9

Module 8: Auditing and Special Circumstances 
1. Prepare a basic audit work plan for:
   a. Audit of consolidated statements
   b. Audit of not-for-profit companies 
   c. Public sector auditing (PS 5000-6420)
   d. Second opinions
Learning Outcome(s): 10
Assignment/Report (2)  5%

Module 9: Other Types of Engagements
1. For the other types of engagements (other than the audit of
   general-purpose financial statements):
   A. Assurance engagements related to financial statements including:
      Audit of special-purpose financial statements and engagements 
      covered in CAS 800, 805, 810
   B. Other assurance engagements including:
      Assurance on other matters, compliance with legislative 
      authorities in the public sector and engagements covered in 
      CSAE 3416, 5815 and 5925
   C. Review engagements including:
      Special-purpose financial statements, non-financial information 
      and engagements covered in 7050, 8100, 8200, 8500, 8600, AUG 
      20, AUG 47
   D. Other engagements including:
      Engagements covered in 7110, 7115, 7600, 9100, 9110, 9200, AUG 
      5, AUG 16, AUG 30 
      a. Discuss entity needs
      b. Describe: acceptance issues, criteria for subject matter,
         standards, materiality, risks/risk of material misstatement
      c. Describe appropriate procedures and prepare a basic work 
         plan 
      d. Evaluate evidence and results
      e. Document results, draw basic conclusions and communicate 
         results
      f. Describe the information/report(s) required for stakeholders 
Learning Outcome(s): 1, 2, 3, 4, 5, 6, 7, 8, 9, 10
Audit Case Due 15%

Module 10: E-Commerce, Comprehensive Auditing, Other Current Issues 
1. Explain the impact of e-commerce and the available audit guidance
   for assurance engagements that address those needs (including  
   WebTrust and SysTrust)
2. Describe and prepare basic comprehensive auditing techniques for:  
   a. Operational audits
   b. Continuous audits
   c. Forensic audits
   d. Comprehensive auditing ¿ value-for-money audits
   e. Environmental audits 
3. Other current audit issues and advanced assurance topics
Learning Outcome(s): 1, 3
Assignment/Report (3) 5%

Final Exam (Cumulative) 40%