TROY UNIVERSITY
SYLLABUS
SORRELL COLLEGE OF BUSINESS

ACT 6698

TGWA

Advanced Auditing

Fall 2011

Prerequisites: Graduate Admission & Prerequisites.

Description An advanced study of auditing theory, practices and problems encountered in the practice of public accounting.

Course Objectives Students successfully completing the requirement of this course should:

·  Demonstrate an advanced understanding of auditing theory as it relates to the practice of public accounting,

·  Demonstrate an advanced understanding of auditing practice and problems as they relate to the practice of public accounting,

·  Demonstrate an ability to recognize and address complexities associated with relevant auditing situations, and

·  Demonstrate a level of understanding of auditing theory and practice similar to the expectations for a professional certification-based position.

Texts The following are the text materials for the course:

·  Trussel & Frazer, The Lakeside Company, Case Studies in Auditing (current edition)

·  Loebbecke, The auditor: An Instructional Novella (current edition)

·  Certified Public Accountants Examination AA section review course, Wiley CPA Review 2011 edition. ISBN: 978-0-4-7055434-0

·  ISBN for bundle of Trussel & Loebbecke: 0132760851.

Other Materials None

Purpose To continue the study of the concepts of auditing.

Supplements (Optional)

AICPA (Current). Codification of statements on auditing standards. New York, NY: American Institute of Certified Public Accountants. Use the AICPA web site when you need additional reading materials.

Mission & Vision Statements

Troy University Mission Statement Troy University is a public institution comprised of a network of campuses throughout Alabama and worldwide. International in scope, Troy University provides a variety of educational programs at the undergraduate and graduate levels for a diverse student body in traditional, nontraditional and emerging electronic formats. Academic programs are supported by a variety of student services which promote the welfare of the individual student. Troy University's dedicated faculty and staff promote discovery and exploration of knowledge and its application to life-long success through effective teaching, service, creative partnerships, scholarship and research.

SCOB Mission Statement Through operations that span the State of Alabama, the United States, and the world, Sorrell College of Business equips our students with the knowledge, skills, abilities and competencies to become organizational and community leaders who make a difference in the global village and global economy. Through this endeavor, we serve students, employers, faculty, and Troy University at large as well as the local and global communities.

SCOB Vision Statement Sorrell College of Business will be the first choice for higher business education students in their quest to succeed in a dynamic and global economy. Sorrell College of Business will create the model for 21st century business education and community service.

School of Accountancy Mission Statement The mission of the School of Accountancy is to advance the accounting profession by providing quality accounting education to both undergraduate and graduate students, publishing quality research and providing service to the professional community. We prepare students for successful careers with increasing professional and managerial responsibility in public accounting as well as government and industry and prepare undergraduate students for admission to graduate programs in accounting and business.

Instructor Stan Lewis, DBA, CPA, CFE, CCEA

Office Location & Hours Bibb Graves Hall 119. Weekly you may contact me in person during the following days and time periods: Monday – noon – 2pm, Tuesday 8am – 1pm and Wednesday – 11m – 2pm. I'm available by email at any time or by telephone during my office hours (US CST/CDT).

Contact Information Telephone: 334-808-6164; 334-670-3136 (Administrative Assistant Ms. Patsy Brown); and 334-670-3592 (FAX). Email:

Class Location & Time Bibb Graves 239, 1:00 to 4:00 p.m. TU main campus

Exams There are three exams for the course. The dates are provided in the Course Schedule section (see below). Each exam will be closed book/closed notes and will consist of multiple choice questions and/or other testing styles depending on the subject matter. You may use a calculator and/or an English translation dictionary during the exam. You may not talk to other students, look on other students exams and answer sheets, exchange information, etc. during the exam.

Assignments These assignments are provided to you in the Course Schedule section below. Each assignment should be prepared in a style consistent with that used in your undergraduate accounting and business courses and with expectations for documentation that are found in the professional workplace.

Cell Phone & Other Electronic Devices Use of any electronic devise by students in the instructional environment is prohibited unless explicitly approved on a case-by-case basis by the instructor of record or by the Office of Disability Services in collaboration with the instructor. Cellular phones, pagers, and other communication devices may be used for emergencies, however, but sending or receiving non-emergency messages is forbidden by the University. Particularly, use of a communication device to violate the Troy University “Standards of Conduct” will result in appropriate disciplinary action (See the Oracle.)

In order to receive emergency messages from the University or family members, the call receipt indicator on devices must be in the vibration mode or other unobtrusive mode of indication. Students receiving calls that they believe to be emergency calls must answer quietly without disturbing the teaching environment. If the call is an emergency, they must move unobtrusively and quietly from the instructional area and notify the instructor as soon as reasonably possible. Students who are expecting an emergency call should inform the instructor before the start of the instructional period.”

Photo ID Required For each exam you must present a student photo ID or the equivalent.

Grading Methods Exams 75 percent divided among the listed exams. Assignments (which includes attendance, class participation and other activities) – 25 percent) These assignment points are only recorded at the conclusion of the course. Bonus Points/ Extra Credit – Comes only from one source - attendance, participation & assignments (includes usage of any supplement). Your efforts are monitored throughout the course and bonus points/extra credit is assigned on that basis only at the end of the course. A base of sixteen weeks is used. The Total Percent possible is 100 percent (the maximum percent that can be achieved is 100% by an individual). The Grading Scale used is: 90%-100% A; 80%- 89% B; 70%- 79% C; 60%- 69% D; and below 60% F

Class Procedures and Requirements The expectation is that each student will actually attend all scheduled lectures (class periods). Students who arrive at class after roll call will be counted absent and (b) be penalized on the assignment portion of your course grade including the bonus points/extra credit component.

Americans With Disabilities Act (ADA) Any student whose disabilities fall within ADA must inform the instructor at the beginning of the term of any special needs or equipment necessary to accomplish the requirements for this course. Students who have or may be dealing with a disability or learning difficulty should speak with the instructor and contact the Office of Adaptive Needs Program at call 670-3221/3222. Various accommodations are available through the Adaptive Needs Program.

Attendance Policy Physical class meetings are part of this course; participation is expected and is integral to any bonus points available in the course.

Make-up Work Policy In general you do not make up exams or assignments. If there are exceptional circumstances such as a hospitalization, an exception may be made at the instructor’s discretion only. Assignments - These are submitted when determined during the class period in which the assignment was described. If you are not in attendance you cannot submit assignments. Attendance and submissions are matched. Exams – Not made up. I will average your other exam scores for the replacement of a missed exam less a 10% penalty. You may not use an average of the first two exams for the final or third exam. You must take the final exam or a grade of F will be recorded.

Incomplete Grade Policy Any incomplete work at the end of the term will not be accepted unless the student can provide acceptable and clear documentation prior to the last class period.

Cheating Policy If you are caught cheating, you will get a course grade of "F." See Student Handbook for the definition and university policy on cheating. Plagiarism is a form of cheating as is copying another’s assignments.

Course Schedule

Dates / Reading & Study Activities
Notations: T/F = Trussel & Frazer text
L = Loebbecke Text
P/S = Professional Standards - Whittington & Delaney
Week 0Aug 16 / This class does not meet the first week of the fall semester since it meets only on Tuesday
Week 1
Aug 23 / Introduction to course
P/S: Review chapters 1 - 4 on your own.
P/S: Module 1 - Engagement Planning, page 53
L 1: The Big Day
L 2: Celebration
L 3: School Days
L 4: Get a Job!
L 5: Getting Started
T/F Introductory Case: A Look Inside a CPA Firm
T/F Case 1: Analysis of a Potential Audit Client
T/F Case 2: New Clients and an Auditor’s Legal Liability
Week 2Aug 30 / P/S: Module 2 - Internal Control, page 101
L 6: We are Family
L 7: The Growth Years

L 8: People Problems

L 9: People Solutions

L 10: Thinking Like a Partner

T/F Case 3: Audit Risk and Analytical Procedures

T/F Case 4: Assessing Control Rick
Week 3Sept 6 / P/S: Module 3 - Evidence, page 190

L 11: The Big Hit

L 12: The Rubber Meets the Road

L 13: Life Goes On and L 14: The Unexpected Happens

T/F Case 5: Tests of Controls: The Revenue and Cash Receipts Cycle

T/F Case 6: Audit Procedures and Audit Documentation: Testing the Inventory Purchasing System

T/F Case 7: Designing Substantive Audit Tests: Compensation Plans

T/F Case 8: Observation of Physical Inventory Count

Week 4Sep 13 / P/S: Module 4 - Reporting, page 273
T/F Case 9: Resolving Audit Problems

T/F Case 12: Review of Subsequent Events

T/F Case 13: Consulting Services

Week 5Sep 20 / Exam Day
Week 6Sep 27 / P/S: Module 5 - Audit Sampling, page 348

T/F Case:10: Sampling for Attributes

T/F Case 11: Sampling for Variables: Difference Estimation

Week 7Oct 4 / P/S: Statements on Auditing Standards, page 402
Week 8Oct 11 /

P/S:Statements on Auditing Standards, page 402.

Week 9Oct 18 / Exam Day
Week 10Oct 25 /

P/S: Statements on Auditing Standards

Week 11Nov 1 /

P/S: Statements on Standards of the Public Company Accounting Oversight Board, page 502

Week 12Nov 8 / P/S: Government Auditing Standards, page 506
Week 13Nov 15 /

P/S: Statements on Standards for Accounting and Review Services, page 509

Week 14Nov 22 /

Fall Break & Thanksgiving Day Holiday

Week 15Nov 29 /

P/S: Module 6 - Auditing with Technology, page 384

P/S: Information Technology Supplement, page 521

Week 16Dec 6 / Exam Day