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: 56.0
Credit Value: 4.0
Credit Value Notes: N/A
Effective: Fall 2019
Prerequisites: ACCG59106
Corequisites: N/A
Equivalents: N/A
Pre/Co/Equiv Notes: N/A

Program(s): Professional Accounting Grad
Program Coordinator(s): Lorraine Alyea
Course Leader or Contact: Ernie Kerst
Version: 20190903_01
Status: Approved (APPR)

Section I Notes: Allowable calculator: Texas Instruments BAII Plus.

Section II: Course Details

Detailed Description
Students develop a solid understanding of the principles and procedures of external auditing. Topics include reporting, professional standards, ethics, legal liability, audit objectives, evidence and documentation, planning and analysis, materiality and risk, internal control, audit sampling, and computer auditing. Students learn through interactive lectures, case studies and classroom activities.

Program Context

Professional Accounting Grad	Program Coordinator(s): Lorraine Alyea
This course is a required course in the Professional Accounting Ontario College Graduate Certificate.

Course Critical Performance and Learning Outcomes

	Critical Performance:
	By the end of this course students will have demonstrated the ability to report the results of an assurance audit for different organization types, identifying various components and associated risks.

Learning Outcomes:

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

Differentiate between the various types of audits, auditors, and reasons for each audit.
Explain the rules of professional ethics and legal liability for the accounting/auditing profession.
Apply generally accepted auditing standards to the planning of an audit.
Analyze materiality to determine the amounts and types of errors that would constitute a substantial error when reporting financial results.
Analyze the internal controls of a company.
Test the feasibility of financial statement balances through financial statement analysis.
Prepare an audit program to test a company's system of internal controls and balances.
Describe the transactions, documents, confirmations, controls and accounts included in the sales, acquisitions and disbursements, production, payroll, finance and investment cycles.
Select accounts for substantive testing and evidence collection.
Evaluate the sufficiency and appropriateness of audit evidence.

Evaluation Plan
Students demonstrate their learning in the following ways:

Evaluation Plan: IN-CLASS & ONLINE INSTRUCTION

	Assignments/Reports (2x10%)	20.0%
	Case Study	20.0%
	Midterm	25.0%
	Comprehensive Final Exam	35.0%
	Total	100.0%

Evaluation Notes and Academic Missed Work Procedure:

In addition to achieving a minimum 50% overall grade, a student must achieve a grade of at least 50% on the final comprehensive exam in order to receive credit for this course.

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

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 & Online Instruction
Professor: N/A
Resource(s):

	Type	Description
Required	Textbook	Auditing: An International Approach, Smieliauskas, W. J., & Bewley, K, McGrawHill Ryerson, 8th edition, 2019
Required	Other	CPA Canada Handbook: Canadian Auditing Standards (CAS) - CPA Canada
Required	Other	Rules of Professional Conduct (RPC) - CPA Ontario

Applicable student group(s): Professional Accounting Ontario College Graduate Certificate
Course Details:

Module 1: Basic Concepts of Assurance

1. Basic Concepts

Assurance engagements
The economic purpose of an audit
The role of the auditor
The expectations gap

2. Auditing Standards and Regulations

Canadian standards
International auditing standards
Canadian regulations
Implications of increased regulation for assurance engagements

3. Rules of Professional Conduct, Ethical Standards and Legal Considerations

Rules of professional conduct
Ethical standards
Legal considerations

Learning Outcomes: 1, 2

Module 2: Acceptance and Continuance

1. Accepting the Engagement

Obtaining an audit engagement
Acceptance risks
Acceptance/continuance procedures
Continuance
Independence-threat responses
Engagement letters

2. Planning the Engagement

The purpose of planning
Audit risk
Potential areas of misstatement
Obtaining an understanding of the entity and its environment
Risk-assessment techniques
Developing a response to assessed risks
Documentation
Communication

3. Planning – Specific Matters to Consider

Going concern
Fraud
Laws and regulations
Related parties
Service organizations
Using the work of an expert
Using the work of internal audit

Learning Outcomes: 2, 3

Module 3 – Introduction to Internal Controls

1. Internal Controls

Control activities
Common controls for transactions

2. Information Systems

Overview
Information systems controls
General controls
Application controls

3. Control Frameworks
4. Accounting System and Control Procedures

Components of internal control
Key internal controls
Understanding systems
Practical examples of accounting systems
Assessing controls

5. Payroll and Inventory Tests of Control

IT considerations
Computer-assisted audit techniques
Implications on remaining audit approach

Learning Outcomes: 5, 7, 8
Assessments: Research Report (10%)

Midterm Exam – 25%

Module 4 – Audit Procedures

1. Introduction to Audit Procedures

Audit evidence
Selecting items for testing
Substantive analytical procedures
Preparing for year-end fieldwork

2. Substantive Testing

Developing substantive procedures
Common balance sheet accounts
Common income statement accounts
Estimates
Complex accounting requirements
Other accounts for testing

Learning Outcomes: 4, 5, 6, 7, 9, 10

Module 5 – Completing the Audit

1. Audit Completion

Documentation
Completion procedures
Evaluation of audit evidence
Management representations
Communicating with management and those charged with governance
Internal completion documents
Quality control over the audit engagement
Reporting

2. Group Audits

Auditing consolidated financial statements
Responsibility
Group audit stages
The audit report

Learning Outcomes: 5, 6, 7, 10
Assessments: Research Report (10%)

Module 6 – Other Types of Engagements
1. Other Types of Engagements

Key process stages
Acceptance and continuance
Planning and risk assessment
Collection of evidence
Completion and reporting
Types of engagements
Comparing assurance and non-assurance engagements

Learning Outcomes: 1, 2
Assessments: Case Study (20%)

Final Exam (Comprehensive) – 35%

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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