obe-syllabus.pdf

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X UNIVERSITYCollege of Accountancy

Bachelor of Science in Accountancy

Course Syllabus in Auditing Theory Review2nd Trimester, S.Y. 2011-2012

I. Course Code: Acctg30

II. Course Description:

The course is a three-unit subject intended to provide the students with concepts underlying the public accounting practice and the auditor as a professional.

This subject tests the candidates conceptual knowledge and understanding of assurance and related services performed by professional accountants.Candidates should know and understand the nature of assurance and related services particularly independent audits of financial statements, the responsibilities of professional accountants; the audit process; audit objectives, evidence, procedures, auditing standards, and the elements of the independent auditors report. In allthe areas included, the candidate shall apply the Philippine Standards on Auditing (PSA) and other regulatory laws and regulations in effect at the time of examination.

Credit Units : 3 unitsContact Hours : 50 hours, 1 meeting per week, 4 hours per meetingPrerequisites : Accounting 20/21

III. Course Outcomes:

CO # Description PO1 PO2 PO3 PO4 PO5 PO6 PO7

1 State, explain and discuss the nature of auditing, the type of audit, the characteristics if accounting, as a profession, the significant provisions of the Revised Accountancy Law, andthe operations of public accounting firms.

3 1 2 1 1 1 3

2 Explain and discuss the nature of audit objectives, evidences, procedures and techniques andapply the concepts and principles of internal control and techniques used to review andevaluate internal controls.

3 1 3 2 2 2 3


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3 Demonstrate the concepts and methodology of statistic audit sampling and prepare auditreports under varying circumstances.

2 1 2 2 3 1 3

IV. Course Contents:

Objectives Topics # of meetings GradingPeriod

TeachingLearningActivities

AssessmentTools

1. Discuss the essence of auditing and assuranceservices in business.

2. Identify the elements of assuranceengagements and cites actual examples of assurance engagements

3. Discuss the basic principles of auditing4. Discuss the classification of audit and auditors

Fundamentals of Auditing and Assurance Services

A. Introduction to assuranceengagements

1. Nature, objective andelements2. Types of assuranceengagements3. Assurance service vis--vis attestation services

B. Introduction to auditing1. Nature, philosophy, andobjectives2. Types of audits

3 meetings

Prelims Lecture/PPT PresentationProblem-solvingBoard Exercises

AssignmentsSeatworkQuizzesRecitations

1. Discuss the attributes of a profession2. Discuss the environment of the accounting

professions3. Identify and discuss the impact of regulatory

agencies to the exercise of accountancy4. Discuss the different standard setting bodies

that affects the practice of accountancy5. Discuss the regulations set forth under the

Code of Professional Ethics6. Discuss requirement of the Philippine

Accountancy Act of 2004

The Professional Practice of Accounting A. Practice of accountingprofession

1. Accounting as aprofession2. Organizations that affectpublic accounting

a. Regulatory governmentagenciesb. Standard-setting bodies

3. Regulation of the publicaccounting practice

a. RA 9298b. SRC Rule 68

B. The CPAs professionalresponsibilities

Prelims Lecture/PPT PresentationProblem-solvingBoard Exercises



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1.Philippine Standards on Auditing2.Code of Ethics3.Quality control4. PSA 240 Fraud, Error,and Noncompliance

PRELIM EXAMINATION OCTOBER 21-22, 2011

1. Discuss the overview of the audit process.2. Rationalize and discuss the importance of risks

assessment procedures in the pre-engagementstage of the audit.

3. Discuss the elements of audit planning and itsscope.

4. Discuss the importance of supervision

The Financial Statements Audit Client Acceptance, Audit Planning, Supervisionand Monitoring A. The Generally Accepted Auditing

Standards (GAAS)B. Overview of the audit processC. Pre-engagement proceduresD. Audit Planning Requirements

1. Planning requirementsa. Knowledge of thebusinessb. Prel iminary analy ticalproceduresc. Materiality

d. Assessing andmanaging audit riskse. Overall audit plan andaudit programf. Considerations of thework of others (experts, internalauditor, other independentauditors)

2.Direction, supervision andreview

1 meeting Midterms Lecture/PPT PresentationProblem-solvingBoard Exercises


1. Discuss the procedures used to obtainunderstanding of an entity and its environment.

2. Discuss the required understanding of the

entitys internal control.3. Discuss assessing the risks of materialmisstatement at the financial statement leveland at the assertion level.

4. Discuss development of responses to assessedlevel of risks at the financial statement level andassertion level.

PSA 315 and PSA 330 Understandingthe Entity and its Environment Includingits Internal Control and Assessing theRisks of Material Misstatement

A. Industry, regulatory and other external factors, including theapplicable financial reportingframeworkB. Internal control

a. Understanding and

1 meeting Midterms Lecture/PPT PresentationProblem-solvingBoard Exercises



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documentationb. Assessment of controlrisks

a) Test of control sb) Documentat ion

C. Assessing the risks of materialmisstatement1.

D. Communicating with thosecharged with governance andmanagement

1. Define and contrast audit objectives,procedures, evidence and documentations

2. Discuss reliability of audit evidence3. Discuss audit procedures and working paper

documentations

Audit Objectives, Procedures, Evidencesand Documentation

A. Nature and significanceB. Evidential mattersC. Audit procedures / techniquesD. Audit working papers

1.5 meeting Midterms Lecture/PPT PresentationProblem-solvingBoard Exercises


1. Discuss the nature and type of samplingapproaches

2. Distinguish statistical and non-statisticalsampling

3. Discuss the application of audit sampling for test of controls

4. Discuss the application of audit sampling for substantive tests

5. Discuss projection and estimation of errors in agiven population

6. Discuss evaluation of sampling results

Audit Sampling A. Basic audit sampling concepts

1.Nature and purpose2.Non-statistical and statisticalsampling3.Attribute and variables samplingtechnique4.Sampling and non-sampling risk5.Testing procedures which do notinvolve sampling

B. Factors affecting sample designC. Factors affecting sample sizeD. Sample selection methodsE. Evaluation of sample results

1.5 meeting Midterms Lecture/PPT PresentationProblem-solvingBoard Exercises


MIDTERM EXAMINATION NOVEMBER 23 24, 20111. Discuss and identify engagement wrap-up

procedures2. Discuss the auditors post audit responsibilities

Completing the Audit / Post-AuditResponsibilities

A. Completing the audit and auditreport preparationB. Post-audit responsibilities1.Subsequent discovery of facts2.Subsequent discovery of omitted

1 meeting Finals Lecture/PPT PresentationProblem-solvingBoard Exercises



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procedures

1. Discuss the preparation of audit reports2. Discuss the rules of modification of the audit

reports3. Distinguish issues that do not lead to

modification of the opinion and those that donot

4. Discuss reporting on comparatives

Reports on Audited Financial StatementsA. The unqualified auditors reportB. Basic elements of theunqualified auditors reportC. Modified auditors report

1.Matters that do not affect theauditors opinion2.Matters that do affect theauditors opinion

D. Report on comparatives



1. Identify and discuss other assurance and non-assurance engagements that are provided byprofessional accountants in practice

2. Discuss professional requirements imposed byapplicable standards for each line of service

Other Assurance and Non-assuranceServices

A. Procedures and reports onspecial purpose audit engagements1.Audit of financial statementsprepared in accordance with acomprehensive basis of accounting other than GAAP in the

Philippines2.Audit of a component of financialstatements3.Reports on compliance withcontractual agreements4.Reports on summarized financialstatements

B. Other assurance engagements:procedures and reports1.Examination of prospectivefinancial information2.Engagements to review financialstatements

C. Non-assurance engagements1.

Agreed-upon proceduresregarding financial information2. Compilation of financialinformation



FINAL EXAMINATION DECEMBER 14 -17, 2011


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V. Teaching-Learning Activities (TLA)TLA Description CO1 CO2 CO3

1 Lecture presentation 60% 60% 70%2 Problem-solving 30% 30% 20%3 Board exercises 10% 10% 10%

VI. Assessment Tools (AT)

AT Description CO1 CO2 CO31 Assignments and seatwork 10% 10% 10%2 Examinations 50% 50% 50%3 Recitations and quizzes 40% 40% 40%

VII. Computation of Scores:

Prelims:Prelim Grade = 10%SW/A + 40% QUIZ + 50% EXAM

Midterms:Raw Midterm Grade = 10% SW/A + 40% QUIZ + 50% EXAMMidterm Grade = 50% Prelim Grade + 50% Midterm Raw Score

Finals:Raw Final Grade = 10% SW/A + 40% QUIZ + 50% EXAMFinal Grade = 50% Midterm grade + 50% Raw Final Grade

VIII. References:

A. Textbook:

Acl 657.450218599 P538 2008 PICPA-MMR Committee on CPE (2008), Philippine Standards on Auditing,

Acl 657.45 R358 2010 Ricchiute, David N. Auditing and Assurance Services 7th Edition, South Western College Publishing, Cincinnati, Ohio 2010

Ireneo, Jose M., Ireneo, Shirley C., and James, George R. (2011), Auditing and Assurance Principles


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Salosagcol, Jekell, Tiu, Micheal and Hermosilla, Roel, Auditing Theory and Concepts, GIC Enterprises & Co., Inc. 2008

B. Books:

Acl 657.45076 B63 2008 Bobadilla, Apolinario D. and Ocampo, Reynaldo R. (2008 Edition), Reviewer in Auditing Theory, Lares Bookstore, Manila

Acl 657.45076 C112 2008 Cabrera, Ma. Elenita Balatbat, Comprehensive CPA Reviewer in Auditing Theory, GIC Enterprises & Co. Inc, Manila 2008

Acl 657.45076 W618 2008 Whittington, O. Ray and Delaney, Patrick R. (2008 Edition), Wiley CPA Exam Reviewer Auditing and Attestation, John Wiley &Sons, Inc., Hoboken, New Jersey

Code of Ethics for Professional Accountants in the Philippines (Effective June 30, 2008)

Philippine Standards on Auditing (PSAs), Auditing and Assurance Standards Council

Philippine Standards on Assurance Engagements (PSAEs), Auditing and Assurance Standards Council

Philippine Standards on Related Services (PSRSs), Auditing and Assurance Standards Council

Philippine Standards on Review Engagements (PSREs), Auditing and Assurance Standards Council

Philippine Standards on Quality Control (PSQCs), Auditing and Assurance Standards Council

Practice Statements, Auditing and Assurance Standards Council

R.A. 9298 Philippine Accountancy Act of 2004 (Effective May 13, 2004)

Rules and Regulations for the Accreditation of Accounting Teachers (Effective June 20, 2008)

C. Online References:

www.prboa.comwww.aasc.org.phwww.picpa.com.ph


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