ACCG42003D
Advanced Auditing
Sheridan
 
  I: Administrative Information   II: Course Details   III: Topical Outline(s)  Printable Version
 
Section I: Administrative Information
  Total hours: 42.0
Credit Value: 3.0
Credit Value Notes: N/A
Effective: Fall 2020
Prerequisites: ACCG32007D
Corequisites: N/A
Equivalents: N/A
Pre/Co/Equiv Notes: 75 credits including ACCG32007D

Program(s): Bach Bus Admin Market Manage, Bach Business Admin Accounting, Bach Business Admin Finance, Bach Human Resources, BachBus Admin Spply Chain Mgmt
Program Coordinator(s): Lorraine Alyea, Sathy Sritharakumar, Carol Bureau, Maryam Hafezi, Mark Weaver
Course Leader or Contact: Ernie Kerst
Version: 20200914_00
Status: Approved (APPR)

Section I Notes: This course will be delivered in hybrid format.

 
 
Section II: Course Details

Detailed Description
Students examine advanced principles and procedures of external auditing, building on the knowledge acquired previously. Topics include engagement planning, audit sampling, substantive testing, professional, legal and ethical environment of analyzing and assessing risk factors, interpreting and documenting results. Students examine audits designed for special circumstances, such as consolidated financial statements, not-for-profit and public sector audits. Additionally, the student examines some of the changes facing the auditing profession. Through interactive lectures, class discussions, problem-solving activities, case analysis, and practice-based projects students develop competencies in evaluating and advising on accounting issues in accordance with professional standards.

Program Context

 
Bach Bus Admin Market Manage Program Coordinator(s): Carol Bureau
Advanced Auditing is an elective course in the Bachelor of Business Administration (BBA) Accounting program, building on previous auditing courses. It is also an elective course in BBA Finance, BBA Human Resources, BBA Marketing and BBA Supply Chain Management. The course focuses on practical application of audit concepts and techniques. This course is designed to meet the requirements for the professional accounting program of study.

Bach Business Admin Accounting Program Coordinator(s): Lorraine Alyea
Advanced Auditing is an elective course in the Bachelor of Business Administration (BBA) Accounting program, building on previous auditing courses. It is also an elective course in BBA Finance, BBA Human Resources, BBA Marketing and BBA Supply Chain Management. The course focuses on practical application of audit concepts and techniques. This course is designed to meet the requirements for the professional accounting program of study.

Bach Business Admin Finance Program Coordinator(s): Mark Weaver
Advanced Auditing is an elective course in the Bachelor of Business Administration (BBA) Accounting program, building on previous auditing courses. It is also an elective course in BBA Finance, BBA Human Resources, BBA Marketing and BBA Supply Chain Management. The course focuses on practical application of audit concepts and techniques. This course is designed to meet the requirements for the professional accounting program of study.

Bach Human Resources Program Coordinator(s): Sathy Sritharakumar
Advanced Auditing is an elective course in the Bachelor of Business Administration (BBA) Accounting program, building on previous auditing courses. It is also an elective course in BBA Finance, BBA Human Resources, BBA Marketing and BBA Supply Chain Management. The course focuses on practical application of audit concepts and techniques. This course is designed to meet the requirements for the professional accounting program of study.

BachBus Admin Spply Chain Mgmt Program Coordinator(s): Maryam Hafezi
Advanced Auditing is an elective course in the Bachelor of Business Administration (BBA) Accounting program, building on previous auditing courses. It is also an elective course in BBA Finance, BBA Human Resources, BBA Marketing and BBA Supply Chain Management. The course focuses on practical application of audit concepts and techniques. This course is designed to meet the requirements for the professional accounting program of study.


Course Critical Performance and Learning Outcomes

  Critical Performance:
By the end of this course, students will have demonstrated the ability to report results of audit findings for a variety of organizations.
 
Learning Outcomes:

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

  1. Appraise the theory and procedures surrounding the audit assurance process.
  2. Analyze materiality to determine the amounts and types of errors that would constitute a substantial error when reporting financial results.
  3. Develop an overall audit strategy when planning an assurance audit.
  4. Analyze the internal controls of a company.
  5. Evaluate audit sampling to ensure the absence of a non-biased sample through analytical procedures.
  6. Test the feasibility of financial statement balances through financial statement analysis.
  7. Select accounts for substantive testing and evidence collection.
  8. Evaluate the sufficiency and appropriateness of audit evidence.
  9. Evaluate the reporting issues to determine sufficiency of the reporting details.
  10. Plan the audit of consolidated, not-for-profit and public sector organizations.
  11. Demonstrate professional behaviour including: meet due dates, produce professional quality assignments, and use reference materials responsibly

Evaluation Plan
Students demonstrate their learning in the following ways:

 Evaluation Plan: IN-CLASS & ONLINE INSTRUCTION
 Pre-Work Assessments (10 x 1%)10.0%
 Assignments (3)10.0%
 Midterm Test30.0%
 Audit Case Study15.0%
 Comprehensive Final Exam35.0%
Total100.0%

Evaluation Notes and Academic Missed Work Procedure:
The Audit Case Study will be completed on a group basis. The Assignments and Quizzes will be completed on an individual basis and to be completed in and out of class as determined. In addition to achieving a minimum 50% overall grade, a student must have a combined average of at least 50% on the non-group components of the evaluation plan 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), Other Canadian Standards (including Public Sector PS 5000 - PS 6400), Assurance and Related Services Guidelines (AuG) - CPA Canada
RequiredOtherAssigned readings from various sources as selected by instructor - Audit cases as selected by instructor

Applicable student group(s): Bachelor of Business Administration
Course Details:

Note: Learning Outcome 11 will be inherent and apparent within each
evaluation.

 

Module 1: The Assurance Process

1. Appraise the value-added (economic purpose) by (of) assurance services

2. Analyze the expectation gap and auditor independence

3. Evaluate the role of the external auditor, the audit risk model and audit liability

4. Discuss the standard-setting process for the current regulatory framework and the implications of pending changes in assurance standards including:

   a. The general assurance framework

   b. Professional standards and ethics

   c. Documents for comment/exposure draft

   d. Directions in assurance research

5. Discuss the regulatory process in Canada (CSA - Canadian Securities Administrators) and the overall implications of regulatory reporting and assurance

6. Discuss the mechanism for compliance including the role of regulatory bodies in good governance

7. Evaluate the role of the audit committee in governance including audit report follow-up/decisions made

Learning Outcome(s): 1

Quiz - 1%

Module 2: Advanced Topics in Engagement Planning

1. Assess issues related to the acceptance and continuance of audit engagements (CAS 210)

2. Assess issues related to audit planning (CAS 300) including:

   a. First-time engagements and opening balances (CAS 510)

3. Assess the entity's risk assessment process including:

   a. Understanding the entity and its environment

   b. Going concern (CAS 570)

Learning Outcome(s): 3

Quiz - 1%

Assignment

Module 3: Advanced Topics in Creating Audit Plans

1. Analyze materiality (CAS 320)

2. Assess the risk of material misstatement at both the financial statement and assertion level (CAS 315)

3. Address the professional, legal and ethical environment in the analysis and assessment of risk factors

4. Develop the overall audit strategy and audit plan (CAS 230)

5. Other engagement planning topics

6. Assess other practical considerations related to audit planning

   (CAS 300) including:

   a. Small business audit issues

   b. Roles of audit team members

   c. Team and client relations

   d. Meeting management

   e. Other practical considerations

Learning Outcome(s): 1, 2, 3

Quiz - 1%

Assignment

Module 4: Advanced Topics in Internal Controls

1. Analyze internal controls, the information system and related processes:
   a. Objectives of internal controls
   b. The control environment and risk assessment process (CAS 260 & CAS 265) 
   c. Control activities and monitoring of controls
   d. Tests of controls (CAS 330)
   e. Information systems (IT) and controls 
2. Develop procedures for tests of controls using computer-assisted audit techniques 
3. Evaluate the management of internal controls (CAS 402)
   a. Relying on service auditor's reports
4. Develop audit procedures for the use of work of internal audit (CAS 610)
5. Optimizing the use of resources
6. Other advanced topics in internal controls  
Learning Outcome(s): 3, 4 

Quiz - 1%

Mid-Term Exam (Module 1 - 4) 30%

Module 5: Advanced Topics in Substantive Testing

1. Evaluate the impact of fraud considerations in substantive testing and audit evidence (CAS 240)

2. Test the feasibility of financial statement balances through financial statement analysis (including the use substantive analytics)(CAS 520)

3. Develop basic audit procedures and work plan for:

   a. Accounts for substantive testing and evidence collection (CAS 330)

   b. Special considerations in obtaining audit evidence including:

      i. 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)

4. Develop procedures using data-oriented CAAT's (computer-assisted audit techniques) in substantive testing

Learning Outcome(s): 6, 7, 8

Quiz - 1%

Module 6: Advanced Topics in Audit Sampling and Audit Evidence

1. Develop and evaluate the sampling approach (CAS 530)

   a. Sampling concepts

   b. Attribute sampling

   c. Dollar-unit sampling

   d. Evaluation of statistical sampling

   e. Other advanced sampling topics for tests of controls and tests of balances

2. Evaluate the sufficiency and appropriateness of evidence (CAS 500, 501)

3. Document work performed (CAS 230), draw conclusions and communicate results (CAS 450)

   a. Aggregate misstatements and perform an overall evaluation of audit evidence  

   b. 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

Quiz - 1%

Assignment

Module 7: Advanced Topics in Reporting Issues

1. Evaluate reporting issues to determine the sufficiency of the reporting details, draw conclusions and communicate audit results 

   (CAS 700, 705, 706) for:

    a. Significant matter paragraphs (emphasis of matter and other matter)

    b. Subsequent events and subsequent discovery of a material misstatement

    c. Comparative information

    d. Foreign reporting

    e. Canada - U.S. differences

    f. Other items requiring professional judgment

    g. Annual reports and the composition of the MD&A

    h. Communication with those charged with governance

       i. Other advanced reporting topics

Learning Outcome(s): 9

Quiz - 1%

Module 8: Other Types of Engagements

1. For the other types of engagements (other than the audit of general-purpose financial statements):

   A. Review engagements including:

      Special-purpose financial statements, non-financial information and engagements covered in 7060, 8100, 8200, 8500, 8600, AUG 20, AUG 47.

   B. Other engagements including:

      Engagements covered in 7150, 7600, 9100, 9110, 9200, AUG 5, AUG 16

      a. Discuss entity needs

      b. Describe: acceptance issues, criteria for subject matter, standards, materiality, risks/risk of material misstatement

      c. Describe appropriate procedures and prepare a basic work plan

      d. Evaluate evidence and results

      e. Document results, draw basic conclusions and communicate results

      f. Describe the information/report(s) required for stakeholders

Learning Outcome(s): 1, 2, 6, 9

Quiz - 1%

Module 9: Auditing of Special Reports and Circumstances

1. For the other types of engagements (other than the audit of general-purpose financial statements):

   A. Assurance engagements related to financial statements including:

      Audit of special-purpose financial statements and engagements covered in CAS 800, 805, 810

   B. Other assurance engagements including:

         Assurance on other matters, compliance with legislative authorities in the public sector and engagements      covered in CSAE 3416, 5815 and 5925

a. Discuss entity needs

b. Describe: acceptance issues, criteria for subject matter, standards, materiality, risks/risk of material misstatement

c. Describe appropriate procedures and prepare a basic work plan

d. Evaluate evidence and results

e. Document results, draw basic conclusions and communicate results

 f. Describe the information/report(s) required for stakeholders

2. Prepare a basic audit work plan for:

 a. Audit of consolidated statements

 b. Audit of not-for-profit companies

 c. Public sector auditing (PS 5000-6420)

 d. Second opinions

Learning Outcome(s): 1, 2, 3, 4, 5, 6, 7, 8, 9, 10

Quiz - 1%

Module 10: E-Commerce, Comprehensive Auditing, Other Current Issues

1. Explain the impact of e-commerce and the available audit guidance for assurance engagements that address those needs (including WebTrust and SysTrust)

2. Describe and prepare basic comprehensive auditing techniques for:

a. Operational audits

b. Continuous audits

c. Forensic audits

d. Comprehensive auditing, value-for-money audits

e. Environmental audits

3. Other current audit issues and advanced assurance topics

Learning Outcome(s): 1, 3

Quiz - 1%

Audit Case Study 15%

Final Exam (Cumulative) 35%



Sheridan Policies

All Sheridan policies can be viewed on the Sheridan policy website.

Academic Integrity: The principle of academic integrity requires that all work submitted for evaluation and course credit be the original, unassisted work of the student. Cheating or plagiarism including borrowing, copying, purchasing or collaborating on work, except for group projects arranged and approved by the professor, or otherwise submitting work that is not the student's own, violates this principle and will not be tolerated. Students who have any questions regarding whether or not specific circumstances involve a breach of academic integrity are advised to review the Academic Integrity Policy and procedure and/or discuss them with the professor.

Copyright: A majority of the course lectures and materials provided in class and posted in SLATE are protected by copyright. Use of these materials must comply with the Acceptable Use Policy, Use of Copyright Protected Work Policy and Student Code of Conduct. Students may use, copy and share these materials for learning and/or research purposes provided that the use complies with fair dealing or an exception in the Copyright Act. Permission from the rights holder would be necessary otherwise. Please note that it is prohibited to reproduce and/or post a work that is not your own on third-party commercial websites including but not limited to Course Hero or OneNote. It is also prohibited to reproduce and/or post a work that is not your own or your own work with the intent to assist others in cheating on third-party commercial websites including but not limited to Course Hero or OneNote.

Intellectual Property: Sheridan's Intellectual Property Policy generally applies such that students own their own work. Please be advised that students working with external research and/or industry collaborators may be asked to sign agreements that waive or modify their IP rights. Please refer to Sheridan's IP Policy and Procedure.

Respectful Behaviour: Sheridan is committed to provide a learning environment that supports academic achievement by respecting the dignity, self-esteem and fair treatment of every person engaged in the learning process. Behaviour which is inconsistent with this principle will not be tolerated. Details of Sheridan's policy on Harassment and Discrimination, Academic Integrity and other academic policies are available on the Sheridan policy website.

Accessible Learning: Accessible Learning coordinates academic accommodations for students with disabilities. For more information or to register, please see the Accessible Learning website (Statement added September 2016)

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. Any changes to course curriculum and/or assessment shall adhere to approved Sheridan protocol. 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.