FINANCIAL AUDIT (6 SCU)

Learning Outcomes:

Upon successful completion of this course, students are expected to be able to: explain the nature and objectives of auditing and other assurance services; describe specific types of audit reports and opinions; explain an accountant’s legal liability and professional ethics; describe the audit process and importance of internal controls; apply the professional skepticism and professional judgment in appropriate circumstances; assess the risks of material misstatements in the financial statements; perform a test of controls and substantive tests for a specific cycle; apply quantitative methods and audit technology used in audit engagements; and apply critical thinking and research skills in relation to the contemporary issues of auditing.

Topics:

This course is designed to give students fundamental concepts in auditing in determining the nature and amount of audit evidence the auditor should gather after considering the unique circumstances of each engagement. The course also puts more emphasis on phase 2 (risk response stage) and phase 3 (complete audit and issue an audit report) of a financial audit. The course covers an understanding of audit and assurance services and the public accounting profession including other assurance and non-assurance services, audit reports, legal liability and professional ethics, audit responsibilities and objectives, audit evidence, audit planning and analytical procedures, materiality concepts, internal control, and fraud auditing. Students will learn knowledge, techniques, and skills related to audit sampling for internal control tests and substantive tests, an audit of the sales and collection cycle, an audit of the acquisition and payment cycle, an audit of the payroll and personnel cycle, an audit of the inventory and warehousing cycle, an audit of the capital acquisition and repayment cycle, an audit of cash and financial instruments, and completing the audit. This course also applies quantitative methods and audit technology that are used in audit engagements, such as Audit Command Language (ACL) and electronic confirmation (Confirmation.com).

Prerequisite(s): Intermediate Accounting