Instruction Mode: In-class & Online Instruction
Professor: Multiple Professors
Resource(s): | Type | Description | Required | Textbook | Auditing: An International Approach, Smieliauskas, W. J., & Bewley, K., McGrawHill Ryerson, 8th, 2019 |
Required | Other | 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 |
Required | Other | Assigned readings/audit cases from various sources as selected by instructor. |
Applicable student group(s): Bachelor of Business Administration
Course Details: Note: Learning Outcome 12will be inherent and apparent within each evaluation.
Module 1: The Assurance Process
- Appraise the value-added (economic purpose) by (of) assurance services.
- Analyze the expectation gap and auditor independence.
- Evaluate the role of the external auditor, the audit risk model and audit liability.
- Discuss the standard-setting process for the current regulatory framework and the implications of pending changes in assurance standards including:
- The general assurance framework
- Professional standards and ethics
- Documents for comment/exposure draft
- Directions in assurance research
- Discuss the regulatory process in Canada (CSA - Canadian Securities Administrators) and the overall implications of regulatory reporting and assurance.
- Discuss the mechanism for compliance including the role of regulatory bodies in good governance.
- Evaluate the role of the audit committee in governance including audit report follow- up/decisions made.
Learning Outcome(s): 1
Textbook Chapters: 1, 2, 3, 18, CAS 200
Assessments: Quiz - 1%
Module 2: Advanced Topics in Engagement Planning
- Assess issues related to the acceptance and continuance of audit engagements (CAS 210)
- Assess issues related to audit planning (CAS 300) including:
- First-time engagements and opening balances (CAS 510)
- Assess the entity's risk assessment process including:
- Understanding the entity and its environment
- Going concern (CAS 570)
Learning Outcome(s): 3
Textbook Chapters: 5, 19, CAS 210, 300, 510, 570
Assessments: Quiz - 1%, Assignment - 5%
Module 3: Advanced Topics in Creating Audit Plans
- Analyze and determine if materiality standards are met (CAS 320)
- Assess information system and enterprise risks to determine the risk of material misstatement at the financial statement and assertion level (CAS 315)
- Address the professional, legal and ethical environment in the analysis and assessment of risk factors.
- Develop the overall audit strategy and audit plan (CAS 230)
- Other engagement planning topics including:
- Impact of information systems risk on enterprise risk
- Systems reliability – privacy, confidentiality, security, integrity
- Internal control mix – preventative, detective, corrective, and cost assessment
- Assess other practical considerations related to audit planning (CAS 300) including:
- Small business audit issues
- Roles of audit team members
- Team and client relations
- Meeting management
- Other practical considerations
Learning Outcome(s): 1, 2, 3,11
Textbook Chapters: 5, 6, CAS 230, 300, 315, 320
Assessments: Quiz - 1%, Assignment - 5%
Module 4: Advanced Topics in Internal Controls
- Analyze internal controls, the information system and related processes:
- Objectives of internal controls
- The control environment and risk assessment process (CAS 260 & CAS 265)
- Control activities and monitoring of controls
- Tests of controls (CAS 330)
- Information systems (IT) and controls
- Develop procedures for tests of controls using computer-assisted audit techniques and power BI tools.
- Evaluate the management of internal controls (CAS 402)
- Relying on service auditor's reports
- Develop audit procedures for the use of work of internal audit (CAS 610)
- Optimizing the use of resources
- Other advanced topics in internal controls
Learning Outcome(s): 3, 4, 11
Textbook Chapters: 7, 9, CAS 260, 265, 330, 402, 610
Assessments: Quiz - 1%
Mid-Term Exam (Module 1 - 4) 30%
Module 5: Advanced Topics in Substantive Testing
- Evaluate the impact of fraud considerations in substantive testing and audit evidence (CAS 240)
- Test the feasibility of financial statement balances through financial statement analysis (including the use substantive analytics) (CAS 520)
- Develop basic audit procedures and work plan for:
- Accounts for substantive testing and evidence collection (CAS 330)
- Special considerations in obtaining audit evidence including:
- 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)
- Develop procedures using data-oriented CAAT's (computer-assisted audit techniques) in substantive tests
Learning Outcome(s): 6, 7, 8
Textbook Chapters: 8, 11, 12, 13, 14, 15, CAS 330, 500, 501, 505, 510, 540, 550, 560, 580,
Assessments: Quiz - 1%
Module 6: Advanced Topics in Audit Sampling and Audit Evidence
- Develop and evaluate the sampling approach (CAS 530)
- Sampling concepts
- Attribute sampling
- Dollar-unit sampling
- Evaluation of statistical sampling
- Other advanced sampling topics for tests of controls and tests of balances
- Evaluate the sufficiency and appropriateness of evidence (CAS 500, 501)
- Document work performed (CAS 230), draw conclusions and communicate results (CAS 450)
- Aggregate misstatements and perform an overall evaluation of audit evidence
- 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, 5, 8
Textbook Chapters: 10, 15, CAS 230, 450, 500, 501 530
Assessments: Quiz - 1%, Assignment – 5%
Module 7: Advanced Topics in Reporting Issues
- Evaluate reporting issues to determine the sufficiency of the reporting details, draw conclusions and communicate audit results (CAS 700, 705, 706) for:
- Significant matter paragraphs (emphasis of matter and other matter)
- Subsequent events and subsequent discovery of a material misstatement
- Comparative information
- Foreign reporting
- Canada - U.S. differences
- Other items requiring professional judgment
- Annual reports and the composition of the MD&A
- Communication with those charged with governance
- Other advanced reporting topics
Learning Outcome(s): 9,
Textbook Chapters: 4, 16, CAS 700, 705, 706
Assessments: Quiz - 1%
Module 8: Other Types of Engagements
- For the other types of engagements (other than the audit of general-purpose financial statements):
- Review engagements including:
- Special-purpose financial statements, non-financial information and engagements covered in CSRE 2400 and 7060
- Other engagements including:
- Engagements covered in CSAE 3000, CSAE 3001, CSAE 3530, CSAE 3531, 7150, 7600, 7170, AUG 5, AUG 16, CSRS 4200, 4400, 4460
- Discuss entity needs
- Describe: acceptance issues, criteria for subject matter, standards, materiality, risks/risk of material misstatement
- Describe appropriate procedures and prepare a basic work plan
- Evaluate evidence and results
- Document results, draw basic conclusions and communicate results
- Describe the information/report(s) required for stakeholders
Learning Outcome(s): 1, 2, 6, 9
Textbook Chapter: 17, CSRE 2400, CSRS 4200, 4400, 4460 7600, CSAE 3530, 3531
Assessments: Quiz - 1%
Module 9: Auditing of Special Reports and Circumstances
- For the other types of engagements (other than the audit of general-purpose financial statements):
- Assurance engagements related to financial statements including:
- Audit of special-purpose financial statements and engagements covered in CAS 800, 805, 810
- Other assurance engagements including:
- Assurance on other matters, compliance with legislative authorities in the public sector and engagements covered in CSAE 3416, 3530, 3531, 5021, and 5925
- Discuss entity needs
- Describe: acceptance issues, criteria for subject matter, standards, materiality, risks/risk of material misstatement
- Describe appropriate procedures and prepare a basic work plan
- Evaluate evidence and results
- Document results, draw basic conclusions and communicate results
- Describe the information/report(s) required for stakeholders
- Prepare a basic audit work plan for:
- Audit of consolidated statements
- Audit of not-for-profit companies
- Public sector auditing (PS 5000-6420)
- Second opinions
Learning Outcome(s): 1, 2, 3, 4, 5, 6, 7, 8, 9, 10
Textbook Chapter: 21, CAS 800, 805, 810
Assessments: Quiz - 1%
Module 10: E-Commerce, Comprehensive Auditing, Other Current Issues
- Explain the impact of e-commerce and the available audit guidance for assurance engagements that address those needs (including WebTrust and SysTrust)
- Describe and prepare basic comprehensive auditing techniques for:
- Operational audits
- Continuous audits
- Forensic audits
- Comprehensive auditing, value-for-money audits
- Environmental audits
- Other current audit issues and advanced assurance topics
Learning Outcome(s): 1, 3
Textbook Chapter: 21
Assessments: Quiz - 1%, Audit Case Study 15%
Final Exam (Cumulative) 35%