IAF520 - Auditing

Outline info
Semester
School
Last revision date 2017-11-20 15:24:59.068
Last review date 2017-11-20 15:25:02.194


Subject Title
Auditing

Subject Description
This introductory subject covers the auditing principles and procedures applicable to both internal and external auditing. Students learn the principles of reporting, professional standards and ethics, legal liability, audit objectives, audit evidence, planning and analysis, materiality and risk, internal control, audit sampling and EDP auditing. Students use the functions and procedures for the revenue and collection cycle, acquisition and expenditure cycle, production and payroll cycle, and finance and investment cycle and also use auditing software for the related practice set.

Prerequisites: IAF 410 and BAB240

Credit Status
This subject is a required credit in the Bachelor of Commerce, degree programs.

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

1. Comprehend the role of public accounting and differentiate between external and internal auditing.
2. Discuss and apply professional audit standards (Generally Accepted Auditing Standards) and assess the relationship with the ethical and legal environment in which auditors operate, including professional rules of conduct
3. Identify the phases in the audit process, including differentiation between management and audit responsibilities:
a) Acceptance/continuance of client engagements
b) Obtain an overall understanding of an entity and develop an overall audit approach, including assessment of the impact of technology and the role of CAAT's and risk of fraud.
c) Risk assessment procedures
d) Design and perform audit procedures
e) Evaluate audit evidence
f) Prepare Audit Report
4. Explain why sampling is important in auditing and the nature and types of audit sampling and the relevance of nonsampling error.
5. Design analytical procedures, tests of controls, and substantive audit procedures used in the audit of the major transaction cycles (e.g. revenues, purchases, payroll and finance).
6. Complete an audit simulation using source documents.
7. Discuss other professional accounting services, including reviews, compilations, interim financial information and comprehensive auditing.

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 http://library.senecacollege.ca for further information regarding cheating and plagiarism policies and procedures.

Discrimination/Harassment
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 student.conduct@senecacollege.ca.

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.

Prerequisite(s)
IAF410 and IAF430 

Topic Outline

TOPICS
Comprehend the role of public accounting and differentiate between external and internal auditing.
Examine Generally Accepted Auditing Standards and assess the relationship with the ethical and legal environment in which auditors operate, including professional rules of conduct
Identify the phases in the audit process, including differentiation between management and audit responsibilities:
  • Acceptance/continuance of client engagements
  • Obtain an overall understanding of an entity and develop an overall audit approach.
Examine risk and Internal Control
Design and perform audit procedures and evaluate audit evidence    
Control Assessment and Testing
Prepare Audit Report
Examine sampling and why it is important in auditing; the nature and types of audit sampling and the relevance of non-sampling error.  
Design analytical procedures, tests of controls, and substantive audit procedures used in the audit of the major transaction cycles - revenues, purchases, payroll and finance

Mode of Instruction
In-Class

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

Prescribed Texts
TITLE: Auditing: An International Approach with Connect with SmartBook COMBO
EDITION: 7th, 2016
AUTHOR: Smielaiuskas
ISBN: 9781259259876

CONNECT Code only to order via the Seneca bookstore is 9781259108068
(365 day subscription)






Reference Material

  • CICA Handbook, Canadian Institute of Chartered Accountants, most recent edition of Assurance sections (This is available online to all Seneca students through the Seneca library)
  • CICA Exposure Drafts listed in the reading list and on the CICA web site. See www.cica.ca, follow the following links: Standards - Auditing and Assurance Standards - Documents for comment. (You will be responsible for exposure drafts that are on the CICA web site that pertain to this course’s subject area as of the date of our course. Our reading list will be updated during the term.)
  • Seneca Libraires - Guide to Research and Citation MLA Style. Latest Ed. Toronto: Seneca College


Required Supplies
None.

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)
OR
EXC Excellent
SAT Satisfactory
UNSAT Unsatisfactory

For further information, see a copy of the Academic Policy, available online (http://www.senecacollege.ca/academic-policy) or at Seneca's Registrar's Offices.


Modes of Evaluation

Tests 30%
Assignments 30%
Final Examination   40%
Total 100%


Late Assignments and Tests


Tests


1. Test and exam dates have been pre-arranged and are non-negotiable.
2. Tests or exams missed for any reason, other than illness, will result in a zero grade. In the case of illness, a validated doctor’s certificate must be presented within one week of returning to the college.
3. On any test or exam, up to 10 % of the marks on that test or exam may be deducted for poorly presented work, misspelled words and poor usage of  language.


Late Assignments

All assignments are due at the beginning of class on the date for submission.  Any extensions must be negotiated in advance.  Assignments are considered one day late at the conclusion of the class date submission day and 10% will be deducted for every day thereafter until  the late mark accumulated total reaches 20 at which time it will be listed as non-submitted and receive a zero grade.


English Competency

The ability to communicate effectively is essential for success in business. Therefore, you must demonstrate English competency in this subject in both oral and written work. Strive to be clear and concise. Ensure your written work is consistent with the rules of English grammar, especially in sentence structure, spelling, and punctuation. Always spell-check, edit, and proof-read your work. 

Language Across the Curriculum Rubric
 
Clear   Confusing  
Good Detail   Lacks Detail  
Easy to Follow   Difficult to Follow  
Answers Question   Evades Question  

Seneca College Library Resources

Be sure to begin all your research, assignment support and career preparation at the Seneca College libraries website http://library.senecacollege.ca where you will find information about our services and collections including, print and e-books, databases that will lead you to thousands of articles in magazines, newspapers, journals, encyclopedias, carefully selected websites, how-to tutorials, streamed videos and much more.

Accounting & Financial Services Subject Guide

Go to http://seneca.libguides.com/content.php?pid=51134&hs=a for an online customized guide for accounting and financial services students that meets specific program needs – you will find library resources, websites, industry associations and organizations, a business glossary, career sites for accounting and financial services students and more.

Citation

For rules on citing your sources, consult Seneca Libraries' online MLA Citation Guide at http://seneca.libguides.com/mla, or purchase a print copy of the Guide to Research & Citation: MLA Style in the Seneca Bookstore.
 
Ensure that you do not commit plagiarism. Information on academic honesty, including the Academic Honesty and Plagiarism tutorial is available through the library at: http://library.senecacollege.ca/Academic_Honesty/index.html.


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


Program Coordinator
Cynthia Duncan

Approved by: Academic Program Manager - Business Studies Danielle Mercier