Sheridan Course Outlines

ACCG70026
External Auditing 1

I: Administrative Information II: Course Details III: Topical Outline(s) Printable Version Public

Section I: Administrative Information

Credit Value: 3.0
Credit Value Notes: N/A
Effective: Fall 2013
Prerequisites: (ACCG70019)
Corequisites: N/A
Equivalents: N/A
Pre/Co/Equiv Notes: N/A

Course Name (short): External Auditing 1
School: Continuing Ed & Corp Training
Program(s): Accounting
Program Coordinator(s): Multiple Coordinators
Course Leader or Contact: Multiple Course Leaders
Originator: Jennifer Frost
Designate: Jennifer Frost
Version: 1.01
Status: Approved (APPR)

Calendar Description
N/A

Typical Instructional Format

Distance Education	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 ACCG70026 and ACCG70027 qualify the student to apply for a partial exemption from the Certified General Accountants of Ontario (CGA) course AU1. The CGA challenge exam for AU1 is required.

Section II: Course Details

Detailed Description
Students learn principles and procedures used to gather evidence to support the "Auditor's Report" for the audit of Financial Statements. Other types of audits are briefly discussed as well as the role of Canadian and International accounting organizations, the Institute of Internal Auditors and the International Federation of Accountants. Topics include assurance engagements, quality control standards, types of audit reports, internal control, professional ethics, legal liability, understanding the client's business, materiality, audit risk model and audit planning. Learning strategies will include assignments, research reports, computer applications and group work.

Program Context

Accounting

Program Coordinator: Multiple

This is a valuable course for students in the Accounting field offered through the Faculty of Continuing and Professional Studies. Students who successfully complete this course with a minimum of a ¿B¿ grade qualify for a partial exemption from the Certified General Accountants of Ontario (CGA) course AU1. The CGA challenge exam for AU1 is required.

Course Critical Performance and Learning Outcomes

 Critical Performance
By the end of this course, students will have demonstrated the ability
to describe the basic concepts of financial statement audits. 


Learning Outcomes
To achieve the critical performance, students will have demonstrated
the ability to:

1. Explain the role of the accounting organizations, Institute of
   Internal Auditors, and International Federation of Accountants.

2. Discuss the requirements and qualifications of auditors.

3. Distinguish the various types of audits, who performs the audits,
   and reasons for each type of audit.

4. Apply the Generally Accepted Auditing Standards (GAAS).

5. Explain the Quality Control Standards for public accounting firms.

6. Apply the three levels of assurance for audits, reviews, and
   compilations.

7. Prepare the four types of audit reports for Financial Statements
   Audits: Standard, Qualified, Denial of Opinion, and Adverse
   Opinion.

8. Apply the rules of professional ethics and legal liability for the
   accounting/auditing profession.

9. Explain clients' business and related audit risks.

10.Distinguish and calculate the materiality risk levels for an audit.

11.Explain the role of computers and software in performing audits.

12.Describe the planning required to perform audits.

Evaluation Plan
Students demonstrate their learning in the following ways:

Students demonstrate their learning in the following ways: 


Tests (2 @ 20% each)                   40%
Comprehensive final exam               40%
(multiple choice, short answers
and detailed written answers).

Weekly individual assignments          10%
6 Assignments (Best 5 of 6 at 2 marks)
Short individual reports               10%
2 Reports at 5 Marks each
    
Total                                 100%

Provincial Context
The course meets the following Ministry of Training, Colleges and Universities requirements:

Essential Employability Skills
Essential Employability Skills emphasized in the course:

	Communication		Critical Thinking & Problem Solving		Interpersonal
	Numeracy		Information Management		Personal

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

Notes: N/A

Section III: Topical Outline

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: Fall 2013
Professor: Multiple Professors
Textbook(s):

Smieliauskas & Bewley 
Auditing: An International Approach, 6th Edition, McGraw Hill Ryerson

Applicable student group(s): Faculty of Continuing and Professional Studies
Course Details:

Module 1: (LO #1,2) Introduction to Auditing and Auditors
Professional Roles and Responsibilities

 - Distinguish auditing from accounting
 - Describe the role of the accounting & auditing organizations
 - Describe the qualifications and licensing of public 
   accountants in Ontario

Text Reference: Chapter 1 and 2


Module 2: (LO# 3,4,5,8,9) Auditors¿ Professional Ethics and Legal
Responsibilities

 - Describe and distinguish the 5 types of audits, auditors, and  
   purpose of each.
 - Explain and apply GAAS in detail
 - Describe the quality control standards for public accounting firms
 - Describe the process for accepting/rejecting audit engagement
 - Describe the information necessary to understanding the client¿s
   business and industry
 - Explain and apply rules of professional conduct and code of ethics
 - Explain the concept of independence and describe examples when
   independence is violated
 - Describe the post-Enron legal environment and new laws to protect
   the public
 - Explain the auditor's legal liability based on common law,
   statutory, and contract law

Text Reference: Chapter 3

Test 1 (Chapters 1,2 & 3)  20% 

Module 3: (LO# 6,7) Reports on Audited Financial Statements
 - Explain and apply the 3 levels of assurance
 - Explain at least 3 reasons / demand for financial statements audits
 - Distinguish and prepare the 4 types of audit reports 
   resulting from a financial statement audit
 - Describe the essence of the risk reduction concept in 
   auditing 

Text Reference: Chapter 4

Module 4:  (LO# 9, 10) Understanding the Client's Business & Risks

 - Describe the pre-engagement arrangements performed by auditors
 - Explain the steps and sources of information to understand the
   client's business
 - Explain and apply 4 types of risk to plan the audit
 - Describe the significance and importance of the 5 management
   assertions. 
 - Identify and apply the 9 general audit objectives
 - Describe the 5 phases of an audit
  
Text Reference: Chapter 5

Test 2: (Chapters 4,5) 20% 

Module 5: (LO# 11) Assessing Risks and Internal Control

 - Describe the basic elements of an information system.
 - Analyze and describe the basic components of a system of internal
   control.
 - Explain the relationship of control environment, information
   systems, and general & application controls.
 - Identify and briefly describe the characteristics and control risks
   of a basic LAN-based computer system.
 - Describe the characteristics and control risks of a personal
   computers system.
 - Describe the effects of e-business on auditing.
 - Describe and apply the audit risk model.

Text Reference:  Chapter 6 & 7

Module 6: (LO# 10,11, 12) - Audit Evidence and Assurance

 - Describe an overview and examples of control activities.
 - Explain the purpose of preliminary analytical procedures.
 - Perform analytical procedures to identify potential errors.
 - Calculate and explain materiality amount for an audit.
 - Explain the 5 levels of appropriateness of audit evidence.
 - Describe the content and purpose of audit programs.
 - Explain the importance, form & content of audit working papers.

Text Reference: Chapter 8
 
Comprehensive Final Exam:  (Chapters 1 to 8)  40%

Retain during the course and for future use when applying for credit 
at other educational institutions

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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