BUSINESS ASSURANCE
ACC 8033
Spring 2012
Professor: John T. RigsbyOffice: 300T McCool Hall
E-Mail: Phone: 325-1640
Class Room: McCool 203Course Meeting Schedule:12:30-1:45 pm MW
Office Hours: 9:45-10:45 am MW and by appointment
Required Materials:1. Practitioner’s Guide to GAAS-2012, Wiley.
- CPA Review—Auditing & Attestation, 2012, Bisk
Optional Texts:3. Contemporary Auditing: Real Issues and Cases, Michel Knapp, West
Publishing Co.
RecommendedA recent auditing textbook is also useful for certain parts of the course,
Texts:e.g., ethics, audit report modifications and special reports. A copy of a recent
textbook will be made available in the reserve room of the library if you don’t
have one.
CourseThis course is designed to be an in-depth study of the auditor’s professional
Objectives:responsibilities, ethics, audit reporting, and other current topics in the practice of
auditing. Its purpose is to expose you to current issues and developments
in the auditing profession and in the process enhance your understanding of the technical, ethical, social, and political issues with which you will be dealing and also develop oral and written communication skills.
Students should develop and exhibit a working knowledge of the professional auditing standards, which will be applied in several cases. The cases, class room discussions, and oral and written exercises are used to allow you to develop your professional judgment, critical thinking, and communication skills. Areas that we spend additional time on are ethics, internal controls, statistics, analytical review, and audit reports. In addition, current events affecting the auditing profession are emphasized in understanding the social and economic role that audits play and the significant pressures and expectations that are placed on auditors, both within the larger society by users, regulators and others, and within the CPA firm.
Course1. The level of difficulty and rigor of the course material covered inRequirements: class will require you to be present. There is a direct correlation between class
attendance and performance on exams. You are preparing for a professional
career; therefore, you should view this class as a professional job assignment. Attendance is expected.
2. A key ingredient for success is self-study. Classroom lectures and activities are designed to guide you and direct your learning experience. Much of your learning occurs outside the classroom; therefore it is your responsibility to diligently study the assigned course materials. Considerable effort on your part is required and is a long-term investment in yourself.
3. You need to apply concepts, not just memorize them, as this course is aimed at developing and internalizing a model for making audit judgments.
4. You are encouraged to work with others in your study group to go over the course material, as auditing is a process of developing judgment. The more you can verbalize the concepts, the better prepared you are for concept application. It is important to develop the professional habit of both developing your own mind and listening to and learning from those around you. You should value the views and perceptions of others and also remember that you have the right and freedom to challenge their thinking as well. Everyone should be dealt with in a professional manner.
Assumptions:I am operating on the assumption that you want to gain the most you can
from your studies and will therefore invest yourself in readings and
assignments and come to every class prepared to engage fully. Therefore, learning is student-centered, active, integrated, cumulative, and connected. I assume you will take responsibility for your own learning and will also contribute to the learning of others. What you gain from this experience is in direct correlation to what you invest in it.
You may assume that I care about your success—personally, academically, and professionally. I trust you will work to balance effectively your personal, academic, and professional commitments. I want you to gain the most possible from this experience and I am committed to my facilitator role in this venture. I want to hear your experiences, ideas, and feedback; and will hold you accountable to high academic standards.
Grades:Grades will be assigned on the following basis:
ActivityMaximum Points
Knapp Case Write-ups (5)...... 40
Current Topic Write-ups (2)…………………… 6
Quizzes (4)………..…….………………………. 60
Debate (1)…………………………………….… . 20
Journals(1)………..………………………..…… 5
Paper……………………………………….…….. 25
Participation………………………………….….. 29
Test 1……...…………………………………… 100
Test 2……………………………………………. 100
Final...... 150
TOTAL...... 535 pts.
The 90-80-70-60 grade scale will be used.
Knapp CaseEach student will be assigned to a team which is responsible for a typed write-up
Write-ups:of the fiveKnapp cases assigned, which are due on the day the cases are to be presented. Points will be deducted for each day the case write-up is late. Allteam
members will receive the same grade, which will be based upon whether (1) the answers address the
questions asked and (2) the clearness and correctness with which ideas are presented.
Current Each student is to prepare two one-page summaries of current events
Topic:occurring in the auditing profession or the business world. The one-page
summaries are to be typed, single space, with a single blank line between paragraphs. They may discuss multiple events or a single event. It should not be a cut and paste job, but your interpretation of the events. Your name, the course title, and current event 1 or 2is to be indicated on the back of the page, which is to be folded when turn in. The first paper is due
February 1, and the second paper is due March 7.
Quizzes:We have four quizzes over the course of the semester. One is on ethics,
one is on the Statement on Auditing Standards, one is to write the standard audit report, and one is on statistical sampling.
.
Debates:Each student is to sign up from a list of topics for a short presentation of five to
seven minutes on one or another side of matters of current controversy in the auditing profession., e.g., whether audit firms should be required to rotate from their clients periodically or the need to pass legislation reducing auditor’s legal liabilities for lawsuits. The presentations will be made at the beginning of class using Power Point slides; normally a pro and a con will be presented. You are to dress well when you give your presentation but it does not have to be professional, e.g., khakis and polo shirt is ok, shorts or tank top is not.
You are to give me a copy of your Power Point slides for the debate after completing it. I will provide you with an example of debate notes at the beginning of the semester. You are to research several articles discussing the topic and develop arguments (points) supporting your side of the case.
Journal:You are to turn in a journal write-up on the second Wednesday. Its purpose is for
me to get to know you. It is to be one-page, typed and may be e-mailed if that is
more convenient.
Paper:You are to prepare and turn in a seven page, double-spaced, typed paper on some
aspect of the development of the auditing profession incorporating the two
articles that we covered in class and at least three other articles.
All sources are to be properly referenced, and a minimum of five sources are required. Points will be allocated as follows: 5 pts length, 5 pts references, 5 pts footnotes, 5 pts grammar, 5 pts development. The due date is April 4. You should see me to get the specific topic approved.
ParticipationThis score depends upon attendance and participation in class.
In addition, in covering the two papers in class on the development of the auditing profession, we will treat
them using the Harvard case review method. I will present you with a list of questions concerning the case
that you should consider in reading it, and at the beginning of class when we meet I will discuss the facts
of the case and the questions some. Then the class will go into break-out groups to compare and discuss
their solutions to the questions, after which the class will reconvene and each of you individually are
responsible to participate and contribute to the class discussion.
Exams/The exams consists of a combination of multiple-choice questions and
Final:essays/exercises. The final is comprehensive, with the material covered by the
multiple choice questions equally weighted. It also includes essays/exercises on
material covered since the last test.
ADA Statement:If you need academic accommodations based on a disability, contact the office of
Student Support Services in Room 01, Montgomery Hall (325-3335) or email
Julie Betty at
Academic Accounting is a profession, the basis of which is our character and integrity.
Integrity: Since you are training to be professionals, you are expected to act as such. You
are expected to abide by the honor code of the University.
“As a Mississippi State University student, I will conduct myself with honor and integrity at all times. I will not lie, cheat, nor will I accept the actions of those that do.” The honor code may be accessed at: All occurrences of academic misconduct will be handled in accordance with the Academic Misconduct Policy ( ).
Cellular Phones:To avoid class disruptions, cellular phones and pagers must be placed in the mute
or off mode during class.The use of cellular phones during exams is not
allowed.
Important Dates: Jan 13 – Last day for dropping a course without a grade.
Jan 17 – Last day for registration or adding a course.
Feb 20 – Last day to drop a course with a “W”.
DateAssignments
Jan9(M)Introduction
11(W) AICPA Code of Professional Conduct
Case: Leigh Ann Walker
16(M)Martin L. King Day (Holiday)
18(W)AICPA Code of Professional ConductJournal Due
23 (M)“How the U.S. Accounting Profession Got
Where It Is Today: Part I”- -Stephen Zeff
25(W)“How the U.S. Accounting Profession Got Quiz 1-Ethics
Where It Is Today: Part II”- -Stephen Zeff
30(M)Debate:
Communicating with Audit Committee
AU 380, 390, 410, 411, 420, 431
Cases 17, 18
Feb 1(W)Debate:
Audit ReportsCurrent Topic #1
AU 504, 508
Cases 19, 20
6(M)Debate:
Audit Reports
AU 508
8(W)Case: Crazy Eddie
Audit Reports
AU 508
13(M) Dating of the Independent Auditor’s ReportQuiz 2-AU 380-508
AU 530, 532, 534, 543, 544
Cases 21, 22
15(W)Other Information
AU 550, 551, 552, 558
Cases 23, 24
20(M)Test 1 (ETs, AUs 380-544)
22(W)Debate:
Subsequent Events
AU 560, 561, 623, 625, 634
Cases 25, 26, 27
27(M)Letters for Underwriters
AU 711, 722, 801, 901
Cases 28, 29
Case: Leslie Fay Companies
29(W)Speaker: Career Chats
Mar5(M)Debate:
Consideration of Fraud
AU 316, Case 6
Case: ZZZZ Best
7(W)Standards & Related TopicsCurrent Topic #2
AU 110-230, 311, 312, 314, 315, 317, 318
Cases 1, 2, 3, 4, 5, 7, 8
12(M)SPRING HOLIDAY BREAK
14(W)SPRING HOLIDAY BREAK
19(M)Speaker: Keith Winfield of Watkins, Ward & Stafford
21(W)Case: Enron
AU 322, 324, 325, 326
Cases 9, 10
26(M)Internal AuditQuiz 3-Audit Report
AU 328, 329, 330, 331, 332, 333
Cases 11, 12, 13
28(W)Debate:
Investments in Securities
AU 334, 336, 337, 339, 341, 342
Cases 14, 15, 16
April2(M)Test 2 (AUs 110-333, 550-901)
4(W)Audit SamplingPaper Due
AU 350
9(M)Audit Sampling
AU 350
11(W)Audit Sampling
AU 350
16(M)Other Professional Services
AU 2101, 2201, 2301, 2401
Cases 30, 31
18(W)Other Professional ServicesQuiz 4-Stat Sampling
AU 2501, 2601, 2701, 3100
Cases 32, 33
23(M)Other Professional Services
AU 3200, 3300, 3400, 3600
Cases 34, 35
25(W)Catch-up
30(M)Final 12:00-3:00 pm