ACCG36913
Auditing 1A |
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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.
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Section I: Administrative Information
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Total hours: 42.0
Credit Value: 3.0
Credit Value Notes: N/A
Effective: Winter 2023
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: 20230109_00
Status: Approved (APPR)
Section I Notes:
N/A
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Section II: Course Details
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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
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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.
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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 describe the basic concepts of financial statement audits.
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Learning Outcomes:
To achieve the critical performance, students will have demonstrated the ability to:
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- 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
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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:
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Provincial Context
The course meets the following Ministry of Colleges and Universities requirements:
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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
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Section III: Topical Outline
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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.
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
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Test 1 (Chapters 1,2 & 3) 20%
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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% ________________________________________
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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.
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.
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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