Sheridan Course Outlines

Land Acknowledgement

Sheridan College resides on land that has been, and still is, the traditional territory of several Indigenous nations, including the Anishinaabe, the Haudenosaunee Confederacy, the Wendat, and the Mississaugas of the Credit First Nation. We recognize this territory is covered by the Dish with One Spoon treaty and the Two Row Wampum treaty, which emphasize the importance of joint stewardship, peace, and respectful relationships.

As an institution of higher learning Sheridan embraces the critical role that education must play in facilitating real transformational change. We continue our collective efforts to recognize Canada's colonial history and to take steps to meaningful Truth and Reconciliation.

Section I: Administrative Information

Total hours: 42.0
Credit Value: 3.0
Credit Value Notes: N/A
Effective: Spring/Summer 2022
Prerequisites: ACCG36913
Corequisites: N/A
Equivalents: N/A
Pre/Co/Equiv Notes: N/A

Program(s): Business Admin. Accounting
Program Coordinator(s): Orlando Brown
Course Leader or Contact: Ernie Kerst
Version: 20220509_00
Status: Approved (APPR)

Section I Notes: N/A

Section II: Course Details

Detailed Description
In Auditing 1B students build upon the theoretical knowledge gained in Auditing 1A 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

Business Admin. Accounting	Program Coordinator(s): Orlando Brown
This is a core course in the third year of the Business Administration Accounting program which builds on the courses covered in the second year program.

Course Critical Performance and Learning Outcomes

	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:

Explain the purpose and advantages of evaluating a client's internal control
Apply the seven internal control objectives and weaknesses, explain reasonable assurance, and cost/benefit aspects of audit tests.
Compare with examples auditing around, through, and with the computer
Compare statistical vs. non-statistical (judgmental) sampling examples for each
Prepare a basic audit program for tests of controls and tests of balances.
Describe the transactions, documents, confirmations, controls, and accounts included in the sales cycle
Describe transactions, documents, controls, and accounts of the acquisition cycle
Prepare audit tests of control & balances for purchases and disbursements transactions
Explain procedures for the inventory count observation and cut-off tests
Describe audit tests, transactions, documents, accounts, and controls of the a) production cycle b) payroll cycle c) finance & investment cycle.
Prepare analytical and detail audit tests for overall revenue and expense accounts
Explain the concepts for subsequent events, contingent liabilities, review of working papers & discovery of errors

Evaluation Plan
Students demonstrate their learning in the following ways:

Evaluation Plan: IN-CLASS

	Tests (2 x 20%)	40.0%
	Report	10.0%
	Assignments (best 5 of 6 x 2%)	10.0%
	Final Exam (Cumulative)	40.0%
	Total	100.0%

Evaluation Notes and Academic Missed Work Procedure:

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

Essential Employability Skills
Essential Employability Skills emphasized in the course:

Communication Skills - Communicate clearly, concisely and correctly in the written, spoken, visual form that fulfills the purpose and meets the needs of the audience.
Communication Skills - Respond to written, spoken, or visual messages in a manner that ensures effective communication.
Numeracy - Execute mathematical operations accurately.
Critical Thinking & Problem Solving Skills - Use a variety of thinking skills to anticipate and solve problems.
Critical Thinking & Problem Solving - Apply a systematic approach to solve problems.
Information Management Skills - Analyze, evaluate, and apply relevant information from a variety of sources.
Information Management - Locate, select, organize and document information using appropriate technology and information systems.
Interpersonal Skills - Show respect for the diverse opinions, values, belief systems, and contributions of others.
Interpersonal Skills - Interact with others in groups or teams in ways that contribute to effective working relationships and the achievement of goals.
Personal Skills - Manage the use of time and other resources to complete projects.
Personal Skills - Take responsibility for one's own actions, decisions, and consequences.

Prior Learning Assessment and Recognition
PLAR Contact (if course is PLAR-eligible) - Office of the Registrar

Not Eligible for PLAR

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.
Instruction Mode: In-Class
Professor: Multiple Professors
Resource(s):

	Type	Description
Required	Textbook	Auditing: An International Approach, Smieliauskas, W. J., Bewley, K, et al, McGrawHill Ryerson, 8th, 2019
Required	Other	CPA Canada Handbook: Canadian Auditing Standards (CAS) CPA

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

Assignment 1 (2%)

________________________________________
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

Assignment 2 (2%)
________________________________________

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
Assignment 3 (2%)
______________________________________
Test 1 (Chapters 9,10,& 11) 20%

________________________________________
Module 4 (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
Assignment 4 (2%)

________________________________________

Module 5 (LO# 10) Production and Payroll Process

Describe the transactions, documents, accounts, and control 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

Assignment 5 (2%)
________________________________________
Module 6 (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

Assignment 6 (2%)

________________________________________
Test 2 (Module 4 to 6) 20%

Report is due (10%)
________________________________________

Module 7 (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

________________________________________
Comprehensive Final Exam 40%

Sheridan Policies

It is recommended that students read the following policies in relation to course outlines:

Academic Integrity
Copyright
Intellectual Property
Respectful Behaviour
Accessible Learning

All Sheridan policies can be viewed on the Sheridan policy website.

Appropriate use of generative Artificial Intelligence tools: In alignment with Sheridan's Academic Integrity Policy, students should consult with their professors and/or refer to evaluation instructions regarding the appropriate use, or prohibition, of generative Artificial Intelligence (AI) tools for coursework. Turnitin AI detection software may be used by faculty members to screen assignment submissions or exams for unauthorized use of artificial intelligence.

Course Outline Changes: The information contained in this Course Outline including but not limited to faculty and program information and course description is subject to change without notice. Nothing in this Course Outline should be viewed as a representation, offer and/or warranty. Students are responsible for reading the Important Notice and Disclaimer which applies to Programs and Courses.

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