ACCG52688
Audit and Assurance
Sheridan
 
  I: Administrative Information   II: Course Details   III: Topical Outline(s)  Printable Version
 

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 2021
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: 20210907_00
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:

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

Evaluation Plan
Students demonstrate their learning in the following ways:

 Evaluation Plan: IN-CLASS & ONLINE INSTRUCTION
 Assignments/Reports (2x10%)20.0%
 Discussion Board Assignments (10 x 1 %)10.0%
 Case Study10.0%
 Midterm25.0%
 Comprehensive Final Exam35.0%
Total100.0%

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: Multiple Professors
Resource(s):
 TypeDescription
RequiredTextbookAuditing: An International Approach, Smieliauskas, W. J., & Bewley, K, McGrawHill Ryerson, 8th edition, 2019
RequiredOtherCPA Canada Handbook: Canadian Auditing Standards (CAS) - CPA Canada available through Sheridan Library access
RequiredOtherRules of Professional Conduct (RPC) - CPA Ontario available through Sheridan Library access

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

Module 1:  Introduction to Auditing & the Auditor's Professional Roles and Responsibilities

  • Define auditing, audit engagements, and describe the comprehensive qualifications of auditors and types of audits (operational, forensic, regulatory).
  • Analyze the economic and social purpose of various types of audit/assurance engagements.
  • Distinguish between statutory and voluntary audits.
  • Evaluate the role of the internal and external auditor in governance and explain the relationship of each with the audit committee.
  • Analyze the expectation gap.
  • Evaluate the role of the audit committee and audit report follow-up.
  • Discuss the standard-setting process and the rules of professional standards (audit and
  • assurance standards in Canada, CSQC-1, Code of Professional Conduct, Ethical Principles).
  • Discuss the monitoring process of the auditing profession (CPAB - Canadian Public Accountability Board) and the mechanisms for compliance including the Sarbanes-Oxley Act (SOX) of 2002.
  • Explain, analyze and draw conclusions on the auditor responsibilities and rules around: code of professional ethics, rules of professional conduct, independence and legal liability.

Learning Outcomes: 1, 2

Textbook Chapters: 1,2 and 3  

Assessments: Discussion Board Assignment (2%)

 

Module 2: Acceptance, Continuance and Audit Planning

  • Assess audit objectives for general-purpose financial statements (CAS 200, 220, 720) including auditor's responsibility to detect misstatements
  • Assess the requirements of audit planning (CAS 300) including:
    • Pre-engagement arrangements
    • Assess client acceptance and continuance (CAS 210)
    • Address initial terms of engagement (CAS 220) (including engagement letters)
    • First-time engagements and opening balances (CAS 510)
  • Assess the entity's (auditee) risk assessment process (including understanding the entity and its environment and going concern (CAS 570).
  • Perform preliminary analytics Using a variety of software tools and assess for risk of material misstatement.
  • Analyze & calculate materiality (CAS 320).
  • Discuss the financial statement assertions.
  • Evaluate and apply the audit risk model (assess inherent risk and control risk).
  • Assess the risk of material misstatement including:  
  • At the financial statement level and at the assertion level (CAS 315)
    • Responsibilities relating to fraud (CAS 240)
  • Assess audit responsibilities relating to fraud (CAS 240), irregularities and illegal acts (CAS 250) and assess fraud risk.
  • Develop the overall audit strategy and audit plan (CAS 230).
  • Assess other practical considerations related to audit planning (CAS 300) including small business audit issues, roles of audit team members, team and client relations and meeting management.

Textbook Chapters: 5 and 6

Assessment: Discussion Board Assignment (2%)

Learning Outcomes: 2, 3, 4, 11

 

Module 3 – Control Assessment and Testing of Internal Controls

  • Analyze the information system and related processes including:
    • Control environment and risk assessment process (CAS 260, CAS 265)
    • Control activities and monitoring of controls
    • Control frameworks (COSO, COCO, ITGC, COBIT)
    • Control objectives and test of controls (CAS 330)
    • Optimizing the use of resources
    • Accounting information systems (IT) and controls 
    • Auditor vs. management responsibility
  • Reassess control risk and the impact on the audit risk model and audit approach. 
  • Prepare an audit program outlining the tests of internal controls.
  • Document the work performed and results of internal control testing (CAS 230).
  • Develop procedures for test of controls using computer-assisted audit techniques
  • Evaluate the management of internal controls (CAS 402)
    • relying on the service auditor’s reports
  • Develop audit procedures for the use of work of internal audit (CAS 610)
  • Other advanced topics in internal controls.

Learning Outcomes: 5, 7, 8, 11

Textbook Chapters: 7 and 9

Assessments: Research Report (10%), Discussion Board Assignment (2%)

 

Midterm Exam –25%

 

Module 4 –Audit Procedures

  • Evaluate the impact of fraud considerations in substantive testing and audit evidence (CAS 240)
  • 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
  • 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 testing
  • Evaluate the sufficiency and appropriateness of evidence (CAS 500, 501)
  • Evaluate audit evidence (CAS 500, 501), document results (CAS 230), and draw conclusions
    • 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
    • Analyze known errors and determine projected likely misstatement for a population determine appropriate treatment of the error with respect to materiality using a variety of software tools.

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

Textbook Chapters: 8, 10, 11, 12, 13, 14, 15

Discussion Board Assignment (2%)

 

Module 5 –Completing the Audit and 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 Outcomes: 5, 6, 7, 10, 11

Textbook Chapters: 4 and 15

Assessments: Research Report (10%), Discussion Board Assignment (2%)

 

Module 6 – 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, 9100, 9110, 9200, AUG 5, AUG 16, CSRS 4460
    • 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, 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 Public sector auditing (PS 5000-6420)
  • Describe and prepare basic comprehensive auditing techniques for:
    • Operational audits
    • Continuous audits
    • Forensic audits
    • Comprehensive auditing, value-for-money audits
    • Environmental audits

Learning Outcomes: 1, 2

Textbook Chapters: 17 and 21

Assessments: Case Study (10%), Discussion Board Assignment (2%)

 

 

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.


[ Printable Version ]

Copyright © Sheridan College. All rights reserved.