ACCG52688
Audit and Assurance
Sheridan
 
  I: Administrative Information   II: Course Details   III: Topical Outline(s)  Printable Version
 
Section I: Administrative Information
  Total hours: 56.0
Credit Value: 4.0
Credit Value Notes: N/A
Effective: Fall 2020
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: 20200914_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.

Evaluation Plan
Students demonstrate their learning in the following ways:

 Evaluation Plan: IN-CLASS & ONLINE INSTRUCTION
 Assignments/Reports (2x10%)20.0%
 Case Study20.0%
 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: N/A
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
RequiredOtherRules 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

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.

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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.


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