IAF520 Winter - 2020, Seneca Subject Outline Print - School of Accounting and Financial Services PDF

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IAF520 Winter - 2020, Seneca Subject Outline Print - School of Accounting and Financial Services

2020-01-21, 12 :13 PM

IAF520 - Auditing School of Accounting and Financial Services, Winter - 2020

Subject Title Auditing

Subject Description This introductory subject covers the auditing principles and procedures applicable to both internal and external auditing. Students learn the principles of reporting, professional standards and ethics, legal liability, audit objectives, audit evidence, planning and analysis, materiality and risk, internal control, audit sampling and EDP auditing. Students use the functions and procedures for the revenue and collection cycle, acquisition and expenditure cycle, production and payroll cycle, and finance and investment cycle and also use auditing software for the related practice set. Prerequisites: IAF 410 and BAB240

Credit Status This subject is a required credit in the Bachelor of Commerce, degree programs.

Learning Outcomes Upon successful completion of this subject the student will be able to: 1. Comprehend the role of public accounting and differentiate between external and internal auditing. 2. Discuss and apply professional audit standards (Generally Accepted Auditing Standards) and assess the relationship with the ethical and legal environment in which auditors operate, including professional rules of conduct 3. Identify the phases in the audit process, including differentiation between management and audit responsibilities: a) Acceptance/continuance of client engagements b) Obtain an overall understanding of an entity and develop an overall audit approach, including assessment of the impact of technology and the role of CAAT's and risk of fraud. c) Risk assessment procedures d) Design and perform audit procedures e) Evaluate audit evidence f) Prepare Audit Report 4. Explain why sampling is important in auditing and the nature and types of audit sampling and the relevance of nonsampling error. 5. Design analytical procedures, tests of controls, and substantive audit procedures used in the audit of the major transaction cycles (e.g. revenues, purchases, payroll and finance). https://www.senecacollege.ca/ssos/printOutline.do?subjectCode=IAF…0&schoolCode=SAFS&termCode=20201&state=both&submit=Print+preview

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IAF520 Winter - 2020, Seneca Subject Outline Print - School of Accounting and Financial Services

2020-01-21, 12 :13 PM

6. Complete an audit simulation using source documents. 7. Discuss other professional accounting services, including reviews, compilations, interim financial information and comprehensive auditing.

Academic Integrity Seneca upholds a learning community that values academic integrity, honesty, fairness, trust, respect, responsibility and courage. These values enhance Seneca's commitment to deliver high-quality education and teaching excellence, while supporting a positive learning environment. Ensure that you are aware of Seneca's Academic Integrity Policy which can be found at: http://www.senecacollege.ca/about/policies/academic-integrity-policy.html Review section 2 of the policy for details regarding approaches to supporting integrity. Section 2.3 and Appendix B of the policy describe various sanctions that can be applied, if there is suspected academic misconduct (e.g., contract cheating, cheating, falsification, impersonation or plagiarism). Please visit the Academic Integrity website http://open2.senecac.on.ca/sites/academic-integrity/for-students to understand and learn more about how to prepare and submit work so that it supports academic integrity, and to avoid academic misconduct.

Discrimination/Harassment All students and employees have the right to study and work in an environment that is free from discrimination and/or harassment. Language or activities that defeat this objective violate the College Policy on Discrimination/Harassment and shall not be tolerated. Information and assistance are available from the Student Conduct Office at [email protected].

Accommodation for Students with Disabilities The College will provide reasonable accommodation to students with disabilities in order to promote academic success. If you require accommodation, contact the Counselling and Accessibility Services Office at ext. 22900 to initiate the process for documenting, assessing and implementing your individual accommodation needs.

Prerequisite(s) IAF 410 and BAB240

Topic Outline WEEK

TOPICS

CHAPTERS

1

Comprehend the role of public accounting and differentiate between external and internal auditing.

1

2

Discuss and apply Generally Accepted Auditing Standards and assess the relationship with the ethical and legal environment in which 2 and 3 auditors operate, including professional rules of conduct

3

Reports on Audited Financial Statements

4

Identify the phases in the audit process, including differentiation between management and audit responsibilities: a) Acceptance/continuance of client engagements 5 b) Obtain an overall understanding of an entity and develop an overall audit approach.

4

https://www.senecacollege.ca/ssos/printOutline.do?subjectCode=IAF…0&schoolCode=SAFS&termCode=20201&state=both&submit=Print+preview

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IAF520 Winter - 2020, Seneca Subject Outline Print - School of Accounting and Financial Services

2020-01-21, 12 :13 PM

5

c) Assess risk, Internal Control and risk of fraud

6 and 7

6

d) Design and perform audit procedures e) Evaluate audit evidence

8

7

Midterm 30%

chapters 1 to 8

8

STUDY WEEK – no classes

9

-Control Assessment and Testing Explain why sampling is important in auditing and the nature and types 9 and 10 of audit sampling and the relevance of non-sampling error.

10

Design analytical procedures, tests of controls, and substantive audit procedures used in the audit of the major transaction cycles revenues.

11

11

Design analytical procedures, tests of controls, and substantive audit procedures used in the audit of the major transaction cycles – purchases&payroll

12&13

12

Design analytical procedures, tests of controls, and substantive audit procedures used in the audit of the major transaction cycles – payables and investments

13&14

13

Completing the audit

15

14

Applying Professional Judgment to Form the Audit Opinion and Issue the Audit Report

16

15

Other public accounting services and reports – reviews, compilations, interim financial information, reports on internal control, and comprehensive auditing (group presentations- brief highlights from hand-in report due at start of class)

17

FINAL EXAMINATION (exam week)

-

This schedule is subject to change. Refer to professor’s addendum

Mode of Instruction • This subject is taught through class lectures and group discussion of assigned readings, problems and cases. • Students are expected to have read assigned materials before class. • Attendance and participation in class is essential

Prescribed Texts Auditing: An International Approach with Connect with SmartBook COMBO, 8th edition, 2019, SMIELIAUSKAS, McGraw-Hill Education. ISBN: 9781259648939 or Connect only option: Smieliauskas, Connect for Auditing: An International Approach 8e - CONNECT w/SmartBook (365 days Subscription) ISBN 9781259463396

https://www.senecacollege.ca/ssos/printOutline.do?subjectCode=IAF…0&schoolCode=SAFS&termCode=20201&state=both&submit=Print+preview

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IAF520 Winter - 2020, Seneca Subject Outline Print - School of Accounting and Financial Services

2020-01-21, 12 :13 PM

Reference Material CICA Handbook, Canadian Institute of Chartered Accountants, most recent edition of Assurance sections (This is available online to all Seneca students through the Seneca library) CICA Exposure Drafts listed in the reading list and on the CICA web site. See www.cica.ca, follow the following links: Standards - Auditing and Assurance Standards - Documents for comment. (You will be responsible for exposure drafts that are on the CICA web site that pertain to this course’s subject area as of the date of our course. Our reading list will be updated during the term.) Seneca Libraires - Guide to Research and Citation MLA Style. Latest Ed. Toronto: Seneca College

Required Supplies TBD

Student Progression and Promotion Policy http://www.senecacollege.ca/about/policies/student-progression-and-promotion-policy.html Grading Policyhttp://www.senecacollege.ca/about/policies/grading-policy.html A+

90% to 100%

A

80% to 89%

B+

75% to 79%

B

70% to 74%

C+

65% to 69%

C

60% to 64%

D+

55% to 59%

D

50% to 54%

F

0% to 49% (Not a Pass)

OR EXC

Excellent

SAT

Satisfactory

UNSAT Unsatisfactory For SAFS degree programs, the minimum requirement for promotion and graduation is an average of C+ (2.5) for subjects in the main field of study [professional subjects], and an average of C (2.0) in all other subjects, and an overall average of C+ (2.5). For further information, see a copy of the Academic Policy, available online (http://www.senecacollege.ca/about/policies/academics-and-student-services.html) or at Seneca's Registrar's Offices. (https://www.senecacollege.ca/registrar.html.

Modes of Evaluation https://www.senecacollege.ca/ssos/printOutline.do?subjectCode=IAF…0&schoolCode=SAFS&termCode=20201&state=both&submit=Print+preview

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IAF520 Winter - 2020, Seneca Subject Outline Print - School of Accounting and Financial Services

Tests (midterm) Assignments Final Examination Total

2020-01-21, 12 :13 PM

30% 30% 40% 100%

Late Assignments and Tests

Tests 1. Test and exam dates have been pre-arranged and are non-negotiable. 2. Tests or exams missed for any reason, other than illness, will result in a zero grade. In the case of illness, a validated doctor’s certificate must be presented within one week of returning to the college. 3. On any test or exam, up to 10 % of the marks on that test or exam may be deducted for poorly presented work, misspelled words and poor usage of language.

Late Assignments All assignments are due at the beginning of class on the date for submission. Any extensions must be negotiated in advance. Assignments are considered one day late at the conclusion of the class date submission day and 10% will be deducted for every day thereafter until the late mark accumulated total reaches 20 at which time it will be listed as non-submitted and receive a zero grade.

English Competency The ability to communicate effectively is essential for success in business. Therefore, you must demonstrate English competency in this subject in both oral and written work. Strive to be clear and concise. Ensure your written work is consistent with the rules of English grammar, especially in sentence structure, spelling, and punctuation. Always spell-check, edit, and proof-read your work. Language Across the Curriculum Rubric Clear Good Detail Easy to Follow Answers Question

Confusing Lacks Detail Difficult to Follow Evades Question

Seneca College Library Resources Be sure to begin all your research, assignment support and career preparation at the Seneca College libraries website http://library.senecacollege.ca where you will find information about our services and collections including, print and e-books, databases that will lead you to thousands of articles in magazines, newspapers, journals, encyclopedias, carefully selected websites, how-to tutorials, streamed videos and much more. Accounting & Financial Services Subject Guide Go to https://seneca.libguides.com/Accounting-FinancialServices for an online customized guide for accounting and financial services students that meets specific program needs – you will find library resources, websites, industry associations and organizations, a business glossary, career sites for accounting and financial services students and more. Citation https://www.senecacollege.ca/ssos/printOutline.do?subjectCode=IAF…0&schoolCode=SAFS&termCode=20201&state=both&submit=Print+preview

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IAF520 Winter - 2020, Seneca Subject Outline Print - School of Accounting and Financial Services

2020-01-21, 12 :13 PM

For rules on citing your sources, consult Seneca Libraries' online MLA Citation Guide at http://seneca.libguides.com/mla, or purchase a print copy of the Guide to Research & Citation: MLA Style in the Seneca Bookstore. Ensure that you do not commit plagiarism. Information on academic honesty, including the Academic Integrity & Plagiarism tutorial are available through the library at: https://seneca.libguides.com/academicintegrity.

Approved by: Karen Murkar Last revision date: 30-Sep-2019 12:06:42 AM Last review date: 2-Dec-2019 12:15:03 AM

Seneca College of Applied Arts and Technology

https://www.senecacollege.ca/ssos/printOutline.do?subjectCode=IAF…0&schoolCode=SAFS&termCode=20201&state=both&submit=Print+preview

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