This course addresses auditing concepts and auditor’s decision making process. The students will be exposed to the definition and field of auditing. This course provides understanding and knowledge to students about the procedures and practical aspects of auditing and the application of auditing standards in the conduct of audit.
ACN 201- Accounting Principles, ACN 202-Management Accounting I and ACN 301-Intermediate Accounting I
- It is the student’s responsibility to gather information about the assignments and covered topics during the lectures missed. Regular class attendance is mandatory. Points will be taken off for missing classes. Without 70% of attendance, sitting for final exam is NOT allowed. According to IUB system students must enter the classroom within the first 20 minutes to get the attendance submitted.
- The date and syllabus of quiz, midterm and final exam is already given here, however, announcements will be given ahead of time. There is NO provision for make-up quizzes.
- The reading materials for each class will be given prior to that class so that student may have a cursory look into the materials.
- Class participation is vital for better understanding of sociological issues. Students are invited to raise questions.
- Students should take tutorials with the instructor during the office hours. Prior appointment is required.
- Students must maintain the IUB code of conduct and ethical guidelines offered by the School of Business.
- Students must refrain from any type of cheating and/or plagiarism in a course. Any student acting otherwise will receive an “F” grade in the course. School of Business, IUB, maintains a zero tolerance policy regarding violation of academic integrity.
- Students are not allowed to keep bags, handouts, books, mobile phones, smart watches or any other smart electronic devices with them during any exam. Students are advised to keep everything in the front of the class room before the exam starts. Please note that, just carrying any smart electronic devises (even if the devise is turned off or put it in silent mode) during the exam will be considered as “cheating”. Moreover, during the exam, anything written on hand palms (or anywhere else) and carrying paper materials (whatever is written) will be considered as “cheating”. Any sorts of “cheating” will result in an “F” grade with no exception. During the exam, students are only allowed to carry pen, pencil, eraser, sharpener, ruler, highlighter and calculator in a clear plastic bag.
Type of Evaluation | Nos. | Weight |
Class Attendance and Participation | 100% | 5 |
Quiz (Best two will be counted) | 5 | 10 |
Project and Presentation | 01 | 30 |
Midterm Exam | 01 | 25 |
Final Exam | 01 | 30 |
Total | 100% |
[Class attendance is mandatory; failure to do so may deduct the final marks]
The following chart will be followed for grading. This has customized form the guideline provided by the school of Business.
A | A- | B+ | B | B- | C+ | C | C- | D+ | D | F |
90-100 | 85-89 | 80-84 | 75-79 | 70-74 | 65-69 | 60-64 | 55-59 | 50-54 | 45-49 | 0-44 |
* Numbers are inclusive
The course will be based mostly on the following books [some other books and journals may be referred time to time]:
- Alvin A. Arens & James K. Loebbecke, Auditing – An Integrated Approach (8th Edition)
- Principles of Auditing and Other Assurance Services (19th Edition) by Ray Whittington & Kurt Pany
Link to virtual learning system: http://103.254.86.4/sb/ (School of Business – Faculty name- Login as a guest- password is 1234).
Sessions | Topic | Learning Outcomes | Readings |
Session -1 | Introduction | Introduction to Auditing
Explanation of Course Outline |
Course Outline |
Session -2 | The Demand for Audit and Assurance Service | Definition “Auditing”
Objectives of Auditing Difference between Accounting & Auditing |
Arens, James
Chapter 1 Page 1-21 Handout available on virtual learning system |
Session -3 | The Demand for Audit and Assurance Service | Types of Auditing
Auditors Role Types of Auditors` Auditor as an Independent discipline |
Arens, James
Chapter 1 Page 1-21 Handout available on virtual learning system |
Session -4 |
The Demand for Audit and Assurance Service
|
Auditors Qualifications, Disqualifications
Auditors Rights & Duties The Power of Auditor |
Arens, James
Chapter 1 Page 1-21
Handout available on virtual learning system |
Session -5 | Professional Ethics
Quiz 1 |
Need for Ethics
Why people act Unethically Ethical Dilemma
Chapter : 1
|
Arens, James Chapter 4
Page 75-106
|
Session -6 | Professional Ethics
|
Ethical Principles
Code of professional conduct Others Rules of Conduct |
Arens, James Chapter 4
Page 75-106
Handout available on virtual learning system |
Session-7 | WorldCom | Briefly discuss about WorldCom Scandal | Handout |
Session -8 | Audit Reports
Quiz 2 |
Standard Unqualified Audit Report
Conditions for Standard Unqualified Audit Report Unqualified Audit Report with explanatory paragraph or modified Consistency versus Comparability
Chapter : 1 & 4
|
Arens, James Chapter 3
Page 43-73
Handout available on virtual learning system |
Session -9 | Audit Reports | Substantial doubt about going concern
Departures from an unqualified audit report Adverse Opinion Disclaimer of Opinion Materiality |
Arens, James Chapter 3
Page 43-73
|
Session -10 | Audit Reports | Different types of Audit reports
[Page 56-57] Number of paragraphs in the reports |
Arens, James Chapter 3
Page 43-73
|
Session -11 | Audit Responsibilities and objectives | Management Responsibilities
Auditor’s Responsibilities Auditor’s Responsibilities for discovering illegal Acts Cycle Approach to segmenting an Audit Audit Objectives
|
Arens, James Chapter 6
Page 141-175 Handout available on virtual learning system |
Session -12 | Audit Responsibilities and objectives
|
Transaction related audit objectives
Balanced related audit objectives Plan and Design an Audit Approach (Phase1) and (Phase2)
|
Arens, James Chapter 6 Page 141-175
|
Session -13 | Audit Evidence | Audit Evidence Contrasted with legal and scientific evidence
Audit Evidence Decisions Audit Program Persuasiveness of evidence Types of Audit Evidence
|
Arens, James Chapter 7
Page 175-215 Handout available on virtual learning system
|
Session -14 | Midterm Exam | CHAPTERS 1,3,4,6,7 | Arens, James
Chaptert 1,3,4,6,7 |
Session -15 | Audit Planning and Documentation | Definition “Planning.”
Obtain Knowledge of client’s industry and Business
|
Arens, James Chapter 8
Page 217-247 Handout available on virtual learning system
|
Session -16 | Hand Note | Audit Evidence and Documentation | Whittington, Pany (Book2)
Handout available on virtual learning system |
Session -17 | Hand Note
|
Audit Planning, Understanding The Client, Assessing Risks and Responding
|
Whittington, Pany (Book2)
Handout available on virtual learning system |
Session -18 | Materiality and Risk | Judgment about Materiality
Illustration of Different Evidence among cycle [ Page 258] Types of Risk Relevant Problem Solving from Hand Notes |
Arens, James Chapter 9
Page 248-286 Handout available on virtual learning system |
Session -19 | Materiality and Risk | (Continue) |
|
Session -20 | Audit Sampling | Overview for Audit Sampling | Chapter 09
(Text Book 2) Handout available on virtual learning system |
Session -21 | The Impact of Information Technology on the Audit process
Quiz |
Assessing risk of information technology
Different types of controls Effects of IT
Chapter: 5, 6,&9 |
Arens, James Chapter 11
Page 329-357 Handout available on virtual learning system |
Session -22 | The Impact of Information Technology on the Audit process | (Continue) | Arens, James Chapter 11
Page 329-357
|
Session -23 | Project Presentation | Project Submissions and Presentation |
|
Session -24 | Project Presentation | Project Submissions and Presentation
|
|
Session -25 | Review Class | Review class for final chapters | |
Session -26 | Final Exam | Based on the final syllabus |
Students who are willing to audit the course are welcome during the first two classes and are advised to contact the instructor after that.
Plagiarism- that is the presentation of another person’s thoughts or words as though they were the students’ own – must be strictly avoided. Cheating and plagiarism on exam and assignment are unacceptable.
Please see the green book for further information about academic regulation and policies, including withdrawal and grading, apples and penalties for pilgrims and academic misconduct.
Students with disabilities are required to inform the School of Business/ Department of Economics of any specific requirement for classes or examination as soon as possible.