ACCT 504: Auditing Theory and Practice

Textbook Information

  • Required: ISBN: 9780134421827, Beasley, Mark S., Auditing Cases: An Interactive Learning Approach, 7th ed., 2019, Pearson Rental (MBS Item #2095581)
  • Optional: ISBN: 9781260247954, Principles of Auditing & Other Assurance Services, by R. Whittington and K. Pany, 22nd ed, McGraw-Hill.

Published Remarks

  • None

Hardware Requirements

  • None

Software Requirements

  • None

Proctored Exams

  • None

Course Description

Auditing theory pertaining to the regulatory environment, risk assessment, internal controls, materiality, computerization, analytical procedures, sampling, fraud, ethics, and professional responsibilities. ACCT 504 Auditing Theory and Practice (3) This course provides in-depth coverage of the theory and practice of auditing. Topics may include the regulatory environment, risk assessment and planning, internal controls, materiality, computerized auditing, analytical procedures and sampling, accounting fraud, ethics and professional responsibilities. Students are expected to apply professional judgment in practical applications of course concepts, building on technical knowledge acquired in undergraduate accounting coursework.

Objectives

Specifically, the objectives of this course are:

  1. You will be able to research the authoritative auditing literature using online databases.
  2. You will critically evaluate and apply AICPA and PCAOB standards to real-world auditing situations.
  3. You will learn to enjoy auditing!

Grading and Examinations

Course Grades

Assignment Category Number x Points Each Total Points Percentage of Overall Grade
Case Discussions 12 x 20 240 app. 63%
Audit Simulation 5 x 20 100 app. 26%
Final Case 1 x 40 040 app. 11%
Total 380 Points

Grades will be based on the following scale: A = 93 – 100, A- = 90 – 92, B+ = 87 – 89, B = 83 – 86, B- = 80 – 82, C+ = 77 – 79, C = 70 – 76, D = 60 – 69, and F = 59 and below.

Case Discussions

Every week we will have a major case or two minor cases for discussion. You need to study the case and post thoughtful answers to the questions. I also expect you to comment on the answers of your classmates. Each discussion post is worth 10 points and there will be a total of 12 weeks with discussion questions. The grade for the discussion will be determined by the quality and completeness of your answers. Please answer all questions. I expect you to come to the virtual class prepared to participate. First, read the case and the assigned materials. Check the authoritative guidance on the cases, which I have given you in a handout. Second, think critically regarding questions. Third, please offer comments and solutions on the board, you do not have to be right. Finally, enjoy the discussion! The problem solving and critical thinking skills will be yours for life.

Audit Simulation

These assignments deal with the evaluation of control activities and substantive audit tests for revenue and purchasing/cash disbursement cycles. These assignments are time-consuming, so start well ahead of time. We will spend some time in class on assignments 10.1 and 10.4 to give you a head start.

Project # Topic Points
Case 10.1 Southeast Shoe Distributor, Inc. (Test of Controls: Revenue Cycle) 20
Case 10.2 Southeast Shoe Distributor, Inc. (Substantive Tests: Revenue Cycle) 20
Case 10.3 Southeast Shoe Distributor, Inc. (Selection of Audit Tests Revenue Cycle) 20
Case 10.4 Southeast Shoe Distributor, Inc. (Test of Transactions: Expenditure Cycle) 20
Case 10.5 Southeast Shoe Distributor, Inc. (Test of Balances: Expenditure Cycle) 20

Final Written Case

The final written case deals with sustainability reporting. The disclosure policies and audit of sustainability reporting are still evolving but you will have exposure to different applications of assurance services. We will discuss the case in the class before the finals week, so you will get guidance in approaching the solution.