ACCG70013
Auditing 2
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: Winter 2018
Prerequisites: ACCG70012
Corequisites: N/A
Equivalents: N/A
Pre/Co/Equiv Notes: N/A

Program(s): Accounting and Finance Courses
Program Coordinator(s): N/A
Course Leader or Contact: N/A
Version: 20180122_01
Status: Approved (APPR)

Section I Notes: This is a Durham College course that is offered through Sheridan FCAPS. Students who register for the course through Sheridan will receive credit from Sheridan College only. Access to the course materials will be through OntarioLearn.com.

 
 
Section II: Course Details

Detailed Description
This course is a continuation of Auditing I and begins with an in-depth study of internal controls. It then applies the concepts of Auditing I to the audit of sales, acquisitions, payroll, inventory and cash balances and related income statement and balance sheet accounts. Students will learn the appropriate audit procedures and audit objectives for tests of controls and tests of details of balances.

Program Context

 
Accounting and Finance Courses Program Coordinator(s): N/A
N/A


Course Critical Performance and Learning Outcomes

  Critical Performance:
N/A
 
Learning Outcomes:

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

  1. Appraise an entity's internal controls and then assess and document the level of control risk and detection risk within the entity in accordance with Generally Accepted Auditing Standards.
  2. Explain the concept of sampling and the role of professional judgment in sampling decisions in an audit engagement.
  3. Evaluate the audit findings and reach a final conclusion on accounts receivable and revenue related accounts; accounts payable and accrued expenses; payroll expense and payroll related accrued expenses; inventory and related accounts and cash accounts using audit standards.
  4. Prepare, analyze, and use audit working papers to document work completed during the audit engagement using Generally Accepted Auditing Standards.
  5. Finalize an audit for a specific entity, including the evaluation and communication of evidence supported audit findings to the appropriate parties.

Evaluation Plan
Students demonstrate their learning in the following ways:

 Evaluation Plan: ONLINE
 Assignments x 240.0%
 Online Quizzes20.0%
 Final Exam40.0%
Total100.0%

Evaluation Notes and Academic Missed Work Procedure:
N/A

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
Students may apply to receive credit by demonstrating achievement of the course learning outcomes through previous relevant work/life experience, service, self-study and training on the job. This course is eligible for challenge through the following method(s):

  • Other
    Notes:  This course is delivered through OntarioLearn at ontariolearn.com and is hosted by (Durham College) DU-ACCT4281.

 
 
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: Online
Professor: Multiple Professors
Resource(s):
 TypeDescription
RequiredTextbookAuditing, A Practical Approach w/WileyPlus, Moroney, Campbell, Hamilton, Warren, WILEY, Extended Canadian, ISBN 9781119133612, No substitute(s) unless otherwise stated.

Applicable student group(s): All
Course Details:

Internal Control in a Financial Statement Audit

  • Understand the importance of internal control to management and auditors
  • Identify the components of internal control.
  • Learn how to plan an audit strategy.
  • Learn how to develop an understanding of an entity's internal control.
  • Identify the tools available for documenting the understanding of internal control.
  • Learn the types of tests of controls.
  • Know how to assess and document the level of control risk.
  • Understand audit strategies for the nature, timing, and extent of substantive tests based on different levels of detection risk.
  • Understand the considerations for the timing of audit procedures.
  • Learn about the auditor's communication of internal control-related matters.

Auditing the Revenue Process

  • Understand why knowledge of an entity's revenue recognition policies is important to the audit.
  • Understand the revenue cycle.
  • Identify the types of transactions in the revenue cycle and the financial statement accounts affected.
  • Identify and describe the types of documents and records used in the revenue cycle.
  • Understand the functions in the revenue cycle.
  • Know the appropriate segregation of duties for the revenue cycle.
  • Identify and evaluate inherent risks relevant to the revenue cycle and related accounts.
  • Assess control risk for a revenue cycle.
  • Identify key internal controls and develop relevant tests of controls for revenue, cash receipts, and sales returns transactions.
  • Relate the assessment of control risk to substantive testing.
  • Identify substantive tests of transactions and analytical procedures used to audit accounts receivable and revenue-related accounts.
  • Identify tests of account balances used to audit accounts receivable and revenue related accounts.
  • Describe the confirmation process and how confirmations are used to obtain evidence about accounts receivable.

Auditing the Purchasing Process

  • Understand why knowledge of an entity's expense and liability recognition policies are important to the audit.
  • Develop an understanding of the purchasing cycle.
  • Identify the types of transactions in the purchasing cycle and the financial statement accounts affected.
  • Identify and describe the types of documents and records used in the purchasing cycle.
  • Understand the functions in the purchasing cycle.
  • Know the appropriate segregation of duties for the purchasing cycle.
  • Identify and evaluate inherent risks relevant to the purchasing cycle and related accounts
  • Assess control risk for a purchasing cycle.
  • Identify key internal controls, and develop tests of controls for purchasing, cash disbursements, and purchase return transactions.
  • Relate the assessment of control risk to substantive testing.
  • Identify substantive tests of transactions used to audit accounts payable and accrued expenses.
  • Identify analytical procedures used to audit accounts payable and accrued expenses.
  • Identify tests of account balances used to audit accounts payable and accrued expenses.
  • Describe how confirmations are used to obtain evidence about accounts payable.

Auditing the Human Resource Management Payroll Process

  •  
  • - Develop an understanding of the payroll cycle.
  • - Identify the types of transactions in the payroll cycle and the financial statement accounts affected.
  • - Identify and describe the types of documents and records used in the payroll cycle.
  • - Understand the functions in the payroll cycle.
  • - Know the appropriate segregation of duties for the payroll cycle.
  • - Identify and evaluate inherent risks relevant to the payroll cycle and related accounts.
  • - Assess control risk for a payroll cycle.
  • - Identify key internal controls and develop relevant tests of controls for payroll transactions.
  • - Relate the assessment of control risk to substantive testing.
  • - Identify substantive tests of transactions used to audit payroll expense and payroll related accrued expenses.
  • - Identify analytical procedures used to audit payroll expense and payroll related accrued expenses.
  • - Identify tests of account balances and payroll related accrued expenses.

Auditing the Inventory Management Process

  • Develop an understanding of the inventory cycle.
  • Identify and describe the types of documents and records used in the inventory cycle.
  • Understand the functions in the inventory cycle.
  • Know the appropriate segregation of duties for the inventory cycle.
  • Identify and evaluate inherent risks relevant to the inventory cycle and related accounts.
  • Assess control risk for an inventory cycle.
  • Identify key internal controls and develop relevant tests of controls for inventory transactions.
  • Relate the assessment of control risk to substantive testing.
  • Identify substantive tests of transactions used to audit inventory and related accounts.
  • Identify analytical procedures used to audit inventory and related accounts.
  • Know how to observe physical inventory.
  • Identify tests of account balances used to audit inventory and related accounts.

Auditing Cash and Short-term Investments

  • Understand the relationship of the various accounting cycles to cash.
  • Know the different types of bank accounts.
  • Identify substantive tests of transactions used to audit cash.
  • Identify tests of account balances used to audit cash.
  • Know how to audit bank reconciliation.
  • Understand fraud related audit procedures for cash.

Completing the Engagement

  • Understand the audit issues related to contingent liabilities.
  • Know the audit procedures used to identify contingent liabilities.
  • Understand the audit issues related to an enquiry letter.
  • Understand why the auditor must be concerned with commitments.
  • Know the types of subsequent events.
  • Understand the effect of subsequent events on the dating of the audit report.
  • Know the audit procedures used to identify subsequent events.
  • Know the audit steps to be taken when finalizing the audit.
  • Understand the auditor's communication with the audit committee and management and the matters that should be addressed.
  • Know the auditor's responsibility for subsequent discovery of facts existing at the date of the auditor's report.


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.


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