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: Fall 2019
Prerequisites: ACCG21646
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: 20190903_00
Status: Approved (APPR)

Section I Notes: N/A

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

Business Admin. Accounting	Program Coordinator(s): Orlando Brown
This is a required course in the three year program that applies content from other courses studied in the program, including accounting, economics, finance, statistics and others.

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:

Explain the role of the accounting organizations, Institute of Internal Auditors, and International Federation of Accountants.
Discuss the requirements and qualifications of auditors.
Distinguish the various types of audits, who performs the audits, and reasons for each type of audit.
Apply the Generally Accepted Auditing Standards (GAAS).
Explain the Quality Control Standards for public accounting firms.
Apply the three levels of assurance for audits, reviews, and compilations.
Prepare the four types of audit reports for Financial Statements Audits: Standard, Qualified, Denial of Opinion, and Adverse Opinion.
Apply the rules of professional ethics and legal liability for the accounting/auditing profession.
Explain clients' business and related audit risks.
Distinguish and calculate the materiality risk levels for an audit.
Explain the role of computers and software in performing audits.
Describe the planning required to perform audits

Evaluation Plan
Students demonstrate their learning in the following ways:

Evaluation Plan: IN-CLASS

	Test 1	20.0%
	Test 2	20.0%
	Comprehensive Final Exam (multiple choice, short answers, and detailed written answers)	40.0%
	Weekly Individual Assignments - 6 Assignments (Best 5 of 6 at 2 marks)	10.0%
	Short Answer Individual Reports	10.0%
	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 - 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.
Information Management Skills - Analyze, evaluate, and apply relevant information from a variety of sources.
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.

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, McGrawHill Ryerson, 8th Edition, 2019
Required	Other	CPA Handbook (online via Sheridan Library database)

Applicable student group(s): Business Administration - Accounting
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.
- 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%
________________________________________

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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