ACCT*3280 Auditing I Section 01

Winter 2017

0.5 credit 

General Course Information

Instructor: Connie Zavitz

Email czavitz@uoguelph.ca Office Location MAC 213 Office Hours To be posted on CourseLink Department/School Department of Management

Class Schedule: Section 1: Monday/Wednesday/Friday 10:30am – 11:20am

Pre-requisites: ACCT*3330

Co-requisites: N/A

Course Description

Auditing I is an examination of the principles and theory underlying the practice of auditing. Concepts of materiality and audit risk are examined and discussed. Sources and techniques for gathering auditing evidence will also be examined. Modern organizations rely on information systems, technology and internal controls to manage and monitor their operations and the impact of these systems on the quality of information produced and on the scope of audits are important elements of this course.

Auditing I focuses on learning the core body of knowledge related to internal control and auditing. There is a strong emphasis on applying this body of knowledge through practical problems. Auditing I is a required course for those seeking a professional accounting designation and is recognized by the CPA professional association.

Course Learning Outcomes

By the end of this course you should be able complete the following with at least a 50% confidence rate:

Compare the use and purpose of the different types of assurance engagements. Apply relevant ethical and legal principles to situations involving ethical or legal elements. Identify and assess issues related to the acceptance of an audit engagement. Demonstrate how to gain an understanding of an audit client and its internal control in

order to assess the risk of material misstatement through error or fraud, set materiality appropriately, and devise an overall audit strategy.

Assess the risks of the project, or, for audit engagements, assesses the risks of material misstatement at the financial statement level and at the assertion level for classes of transactions, account balances, and disclosures.

Assess risks at an assertion level and plan suitable evidence-gathering procedures,

including tests of controls, substantive tests of details, and analytical procedures. Evaluate audit evidence and results of audit tests. Describe the procedures required to complete and audit and formulate an opinion in

support of an appropriate audit report. During this course you will also practice and develop the following skills, in accordance CPA Competency Map:

Demonstrate a cohesive process for using professional judgment to solve problems and make decisions. (Competency Map – Section 2.1)

Write and speak to enhance work performed (Competency Map – Section 3.2) Work effectively as a team member. (CPA Competency Map – Section 5.2)

Indicative Content

Refer to Detailed Schedule of Activities and Readings posted on the Courselink site.

Note: The schedule of learning activities may require modification from time to time. Any changes will be announced in class and/or on the Courselink site.

Course Assessment

Assessment Weight Description Associated Learning

Outcomes Due Date/ location

Assessment 1A: 5% Pre-class On-line Quizzes (best 10)

1 - 9 Refer to weekly schedule / on-line

Assessment 1B: 10% Pre-class On-line Quizzes (best 10)

1 - 9 Refer to weekly schedule / on-line

Assessment 2: 10% Midterm Exam #1 1 - 5 January 30, 2017 In Class

Assessment 3: 10% Midterm Exam #2 1 - 10 March 20, 2017 In Class

Assessment 4A: 9% Group project – Part I

4,5,6,8-11 February 10, 2017

Group Dropbox Submission – Paper Copy in Class

Assessment 4B: 6% Group project – Part 2

5,6,8-11 March 10, 2017

Group Dropbox Submission – Paper Copy in Class

Assessment 5: 10% Participation & Professionalism

9-11 On-going

Assessment 6: 40% Final Exam 1 - 10 Saturday April 22 2:30PM – 4:30PM

Total 100%

Teaching and Learning Practices

The goal for this course is to help you develop an understanding of basic internal control and audit concepts at a level that entry-level accountants working for either companies or public accounting firms are expected to possess. Accordingly, there will be strong emphasis on problems to give you practice at applying auditing principles and practices. There will also be practice cases that require you to perform some of the activities involved in an audit.

A typical week will include the following learning activities:

Background Readings

Each topic contains readings about related concepts and issues. Readings are to be completed prior to attending class.

In-class discussion & problems presentations

Most classes will involve completion within groups of one or two problems related to the material being covered in the lecture. Group solutions to these problems will be individually submitted at the end of each class in the designated dropbox. Sample solutions will be posted to the course website after class.

Self- study problems

The assigned self-study problems relate to the material covered in the class, either as reinforcement or to help cover areas that could not be reached during class time. Ideally, they should be attempted after the readings are complete but prior to attending class, and then revisited after class. Solutions will be available on Courselink after class.

The following additional learning activities will take place during the term:

Group project The group project will provide you and your group members with an opportunity to develop several components of a preliminary audit plan for a publicly traded entity, based on publicly available information. The assignment will be submitted in two parts, following topic coverage in the course, and will require demonstration of strong writing and organizing skills.

On-line open-book quizzes

The on-line quizzes will be due on an almost weekly basis. The pre-class quizzes will consist of fairly simple questions/problems designed to reinforce the material we’ve covered in your readings. They can be found on Courselink. Pre-class quizzes are to be completed before 10am on Monday morning. The end of topic quizzes will not only cover the topics covered in the course readings but topics only discussed in the group exercises in class. The quiz content is cumulative – it includes all of the course topics covered to date. All in-class quizzes are scheduled at the end of the class on the date specified on the course outline. Please bring a CourseLink compatible device (laptop, smartphone, tablet, etc.) to the class on the date of the quiz. Students are responsible for the reliability of their devices. No deferred quizzes or weight allocation will be granted for device/connection issues, such as hardware malfunction, internet connection problem, software crash etc.

Participation & Professionalism

Class participation will be evaluated using the following factors: In Class Participation Submissions: During each class, groups will be

asked to complete discussion questions and/or other group assignments and present their findings to the class. Groups will also be asked to complete their findings on paper and INDIVIDUALLY submit

their work, in the dropbox, at the end of class. Submitted work will be evaluated for effort only. Grades will not be evenly distributed between classes – some class submissions may be receiving a higher participation weighting than other classes. Submissions completed after 11pm on the day of class will not be accepted.

Peer Evaluation: Your peers will evaluate your contribution to the group project. Your peer’s assessment of your group participation will contribute 2% of your final grade (1% per group project).

What have learned Discussion Forums: Each week students can post a short paragraph on ‘what they learned that week’ OR respond to a peer’s post. In order to have the post factored into the participation grade, they must have content and be of high quality. Only one discussion post per week will be factored into the participation grade.

Overall Professionalism: Your individual interaction with the professor, TA, and peers will be evaluated (factors that the instructor will consider are: your involvement in your group discussions, if you act as your group spokesperson, your individual initiative and involvement in class discussion, professionalism in verbal and written communications).

The emphasis in this course is on learner-centredness, in accordance with the University’s Mission Statement, and as such, there is a significant element of self-teaching involved. The time commitment will be commensurate to that of other courses.

Course Resources

Required Texts:

Arens et al., Auditing: The Art & Science of Assurance Engagements, Canadian Thirteenth Edition, Pearson Canada Inc., 2016.

[The text may be purchased in hard copy or as the online “eBook” version. The e-book for this text is a permanent e-book that you download to your computer. This is different from, for example, the 3340 e-book text (Kieso), which provides you with access to the text material for 6 months. Therefore, both the e-book and the hard copy text are good choices for students who are planning to pursue the CPA designation.

CPAC Handbook. Electronic access to the CPAC Handbook can be obtained through the University of Guelph library. Because the Handbook is constantly being updated, a hardcopy version would become quickly updated, and is not recommended.

CPA Ontario Rules of Professional Conduct Downloadable through this link: http://www.cpaontario.ca/Resources/Membershandbook/1011page2635.pdf.

Course Policies

Midterms and Final Exams

Midterms will be written during class time. You must inform me at czavitz@uoguelph.ca on or before the day of the exam if you are unable to attend the midterm. Students who do not report absences within a three days from missed midterms will receive a grade of zero for the midterm examination.

Please note that missed final examinations must be reported to the BComm Counselling Office in MAC 106, or at bcomm@uoguelph.ca. It is the student’s responsibility to report/document the absence AND to request a deferred examination.

Late group assignments

Unless you have discussed an extension well ahead of the due date, late penalties of 5%/earned grade/day (including weekends) will be assigned. Extensions will only be granted on the basis of extenuating circumstances.

Grade re-assessments

Students wanting to resubmit their midterm or group project for a grade re-assessment must do so within one week of the date the assignment or midterm was returned to students in class.

On-line communication

I will be communicating with you via your central email account (@mail.uoguelph.ca) from time to time. You are required to check this account on a regular basis. Please be advised that I will not edit our mailing lists to your hotmail/yahoo etc. account. While we endeavour to check our email daily, you can reasonably expect a response within 2-3 business days.

Group work

Some of the coursework for this class will be done in groups. Your performance within your group is factored into your participation grade. You are responsible for forming your own group of four members. You will work in these groups extensively for class discussions, and you will complete your group project together.

Your group’s grade depends on the contribution of each member. Students are expected to do everything possible to ensure good working relationships with fellow group members and resolve conflicts and differences of opinion as they occur. Peer evaluations concerning each member’s contribution to the group assignment will be conducted and will inform half the marks assigned to each group submission.

Authorized vs. unauthorized collaboration

Many students find it helpful to consult their peers while doing assignments. This practice is legitimate and is expected. However, the written assignments are required to be the work of the individual only (for individual assignments), and individual group members only (for the group project). Therefore, it is not acceptable practice to pool notes/files and produce common answers. To avoid this situation, it is suggested that students do not write anything down during such peer consultations/discussion, but keep mental notes for later development on their own. Major occurrences of academic dishonesty, such as the submission of work that is not the individual’s/group’s own, will be dealt with according to the procedures set out in the Senate guidelines, and may result in expulsion from the University.

Retention of graded work

Keep a copy of all of your graded work until final marks have been recorded. You may be asked to resubmit your work at any time.

Use of electronic devices and recording of lectures

Electronic recording of classes is expressly forbidden without consent of the instructor. When recordings are permitted they are solely for the use of the authorized student and may not be reproduced, or transmitted to others, without the express written consent of the instructor.

University Policies

Academic Consideration

When you find yourself unable to meet an in-course requirement because of illness or compassionate reasons, please advise the course instructor in writing, with your name, id#, and e-mail contact. See the academic calendar for information on regulations and procedures for Academic Consideration (http://www.uoguelph.ca/registrar/calendars/undergraduate/current/c08/c08-ac.shtml).

Academic Misconduct

The University of Guelph is committed to upholding the highest standards of academic integrity and it is the responsibility of all members of the University community, faculty, staff, and students to be aware of what constitutes academic misconduct and to do as much as possible to prevent academic offences from occurring.

University of Guelph students have the responsibility of abiding by the University's policy on academic misconduct regardless of their location of study; faculty, staff and students have the responsibility of supporting an environment that discourages misconduct. Students need to remain aware that instructors have access to and the right to use electronic and other means of detection. Please note: Whether or not a student intended to commit academic misconduct is not relevant for a finding of guilt. Hurried or careless submission of assignments does not excuse students from responsibility for verifying the academic integrity of their work before submitting it. Students who are in any doubt as to whether an action on their part could be construed as an academic offence should consult with a faculty member or faculty advisor.

The Academic Misconduct Policy is detailed in the Undergraduate Calendar (https://www.uoguelph.ca/registrar/calendars/undergraduate/current/c08/c08-amisconduct.shtml).

Accessibility

The University of Guelph is committed to creating a barrier-free environment. Providing services for students is a shared responsibility among students, faculty and administrators. This relationship is based on respect of individual rights, the dignity of the individual and the University community's shared commitment to an open and supportive learning environment. Students requiring service or accommodation, whether due to an identified, ongoing disability or a short-term disability should contact Student Accessibility Services (SAS) as soon as possible.

For more information, contact SAS (formerly CSD) at 519-824-4120 ext. 56208 or email csd@uoguelph.caor see the website: http://www.uoguelph.ca/csd/.

Course Evaluation Information

Please refer to the Course and Instructor Evaluation Website: https://courseeval.uoguelph.ca/

Drop date

The last date to drop one-semester courses, without academic penalty, is Friday, November 4, 2016. For regulations and procedures for Dropping Courses, see the Academic Calendar: http://www.uoguelph.ca/registrar/calendars/undergraduate/current/c08/c08-ac.shtml.

Academic Load

Students should note that 10 to 12 hours of academic time and effort per week (including classes) are expected for a 0.50 credit course. Please refer to the University Regulations and Procedures: http://www.uoguelph.ca/registrar/calendars/undergraduate/current/c08/c08-aload.shtml

Additional Course Information Code of Conduct – The Top Ten

As a student in the Department of Management, College of Business and Economics at the University of Guelph, you are a member of a scholarly community committed to improving the effectiveness of people and organizations, and the societies in which they reside, through groundbreaking and engaging scholarship and pedagogy. We seek to promote a comprehensive, critical and strategic understanding of organizations, including the complex interrelationship between leadership, systems (financial and human) and the broader social and political context. And, we prepare graduates for leadership roles in which organizational objectives, self-awareness, social responsibility and sustainability are primary considerations.

In keeping with this commitment, we expect all of our students (indeed – all members of our community) to act in a professional and respectful manner to fellow students, staff and faculty, as well as to members of the broader university and local community. This expectation is very much in keeping with your preparation for a professional career.

The following conduct is expected of all of our students:

1. Come to class prepared to learn and actively participate (having completed assigned readings and attempted the assigned problems).

2. Approach your academic work with integrity (avoid all forms of academic misconduct).

3. Arrive on time and stay for the entire class. If you happen to be late, enter the classroom as quietly as possible. At the end of class, apologize to the faculty member for the interruption. If you have to leave class early, alert the faculty member in advance.

4. If you know in advance that you are going to miss a class, send an email to the faculty member letting him/her know that you will be absent, with a brief explanation.

5. While in class, refrain from using any written material (e.g., newspaper) or technology (e.g., the Internet, computer games, cell phone) that is not relevant to the learning activities of that class. Turn off your cell phone at the start of each class.

6. Listen attentively and respectfully to the points of view of your peers and the faculty member. Don’t talk while others have the floor.

7. Raise your hand when you wish to contribute and wait to be called upon. Challenge others appropriately, drawing on reason and research rather than unsubstantiated opinion, anecdote and/or emotion. Keep an open mind and be prepared to have your point of view challenged.

8. When sending emails to faculty, apply principles of business writing; use a professional and respectful style (use a formal salutation, check for spelling and grammatical errors, and avoid slang and colloquial short forms).

9. If you need extra help, ask for it. However, do not wait unit right before a midterm/final exam. Keep up with the work in the course. When meeting with your instructor, have your questions prepared in advance.

10. Complete the online course evaluations at the end of the term and provide thoughtful feedback. We are committed to continuously improving our teaching practice, but need your input to help us decide what to focus on.