AIT806 - Auditing With Practice Set

Outline info
Last revision date 2016-02-01 00:31:10.717
Last review date 2016-03-21 00:15:06.652

Subject Title
Auditing With Practice Set

Subject Description
This one semester subject is a comprehensive introduction to auditing which will provide students with knowledge of external auditing principles and procedures. Students will study a variety of topics including: the nature of audit evidence, internal control, materiality and risk, auditing in an EDP environment, reporting and the ethical and legal environment.

Credit Status
This subject is a required credit in the Accounting and Information Technology Program. To qualify for the exemption from the CGA Auditing (AU1) subject, students must achieve at least a "C+" in the subject.

Learning Outcomes
Upon successful completion of this subject the student will be able to:

1. Explain the nature and purpose of auditing.

2. Discuss professional audit standards (Generally Accepted Auditing Standards) including the ethical and legal environment in which auditors operate.

3. Discuss the objective of an audit, specific audit objectives, methods used to gather evidence, proper documentation and pre-engagement activities.

4. Discuss the components of audit planning including the components of audit risk and its interrelationship with materiality and evidence gathering.

5. Describe internal control and its importance in the audit process.

6. Explain the nature and types of audit sampling.

7. Discuss the affect of an EDP environment on internal controls and the audit.

8. Audit the revenue and collection cycle.

9. Audit inventory and capital assets, production and payroll cycles and the finance and investment cycle.

10. Audit investments, long-term debt and shareholders' equity balances. Explain the steps to complete the audit and post audit responsibilities.

11. Discuss the implications of fraud and other irregularities to the auditor.

12. Complete the assigned Practice Set assignment

Cheating and Plagiarism
Each student should be aware of the College's policy regarding Cheating and Plagiarism. Seneca's Academic Policy will be strictly enforced.

To support academic honesty at Seneca College, all work submitted by students may be reviewed for authenticity and originality, utilizing software tools and third party services. Please visit the Academic Honesty site on for further information regarding cheating and plagiarism policies and procedures.

All students and employees have the right to study and work in an environment that is free from discrimination and/or harassment. Language or activities that defeat this objective violate the College Policy on Discrimination/Harassment and shall not be tolerated. Information and assistance are available from the Student Conduct Office at

Accommodation for Students with Disabilities
The College will provide reasonable accommodation to students with disabilities in order to promote academic success. If you require accommodation, contact the Counselling and Disabilities Services Office at ext. 22900 to initiate the process for documenting, assessing and implementing your individual accommodation needs.

Students must meet the Program Eligibility Requirements as stated on the program web page:  

Topic Outline

  • Introduction, Audit, Assurance and Quality Control
  • Reports on Audited F/S, Ethics and Auditor Responsibilites
  • Legal Liability
  • Preliminary Audit Planning, Understanding the Auditee
  • Assessing Risks and Internal Control
  • Audit Evidence and Assurance
  • Control Assessment and Testing
  • Audit Sampling
  • Revenues/Purchases
  • Production/Payroll/Finance
  • Completing the Audit and Other Public Accounting Services
  • Fraud Awareness Auditing

Note:  The topic outlines and required reading specified in each of the CGA AU1 lessons are to be followed each week unless advised otherwise. 


Mode of Instruction
A combination of teaching methods will be utilized which may include lectures, case studies, discussions, group and individual work.

Prescribed Texts
Title: Auditing: The Art and Science of Assurance Engagements
Edition: 12th Edition
Author(s): Arens, Elder, Beasley, Splettstoess
Publisher: Pearson Education
CGA Internet CD (AU1) 2012. CGA Canada.

Reference Material
CICA Handbook - Assurance. CGA. 

Required Supplies

Promotion Policy

Grading Policy
A+ 90%  to  100%
A 80%  to  89%
B+ 75%  to  79%
B 70%  to  74%
C+ 65%  to  69%
C 60%  to  64%
D+ 55%  to  59%
D 50%  to  54%
F 0%    to  49% (Not a Pass)
EXC Excellent
SAT Satisfactory
UNSAT Unsatisfactory

For further information, see a copy of the Academic Policy, available online ( or at Seneca's Registrar's Offices.

Modes of Evaluation
Assignments are due on the dates specified. Should extenuating circumstances arise, please contact your instructor immediately, prior to when your assignment is due, so an appropriate course of action can be established. Late assignments may be subject to a penalty of up to 10% per week and will not generally be accepted beyond two weeks after the assignment due date.

In cases of cheating or plagiarism, the College Academic Policy will prevail.  Please ensure that all assignments and reports are properly documented.

Students are referred to the following web site for the Seneca College Library MLA Style Guides, Academic Honesty Policy and Copyright guidelines:  


Dates for evaluations are specified in the weekly schedule addendum to this outline. The evaluation process may include, but is not limited to, tests, exams, assignments or presentations. Any absences or missed submissions due to medical or other reasons must be supported by medical or other appropriate documentation within one (1) week of the due date. The faculty and program area must be notified immediately in the even of a missed evaluation. Upon acceptance of the documentation, the weighting of the missed deliverable will normally be applied to the final exam.

English Competency:

The ability to communicate effectively is essential for success in business. Therefore, you must demonstrate English competency in this course in both oral and written work. Ensure your written work includes correct sentence structure, spelling and punctuation. Always spell check, edit and proofread your work.

Grading is based on the following marking scheme:

Assignments (Assignment 5%, Practice Set 25%) 30%
Midterm Test 25%
Final Examination 45%
Total 100%

Please retain this course outline document for future educational and/or employment use.

Program Coordinator
Keith Chapin

Approved by: Jeff McCarthy