Approved by Faculty Senate.

Resubmission

University Studies Course Approval

 

Department or Program: Accounting

Course Number: 471 and 571

Semester Hours: 3

Frequency of Offering: Every semester

Course Title: Auditing I

Catalog Description: Auditing I covers the basic processes and procedures of financial statement auditing, including practical application. Auditing standards, ethics, and legal liability are covered.

Is this an existing course previously approved by A2C2? Yes

Is this a new course approval? No

University Studies Approval is requested in: Writing Flag.

Department Contact Person: Pam Murphy, pmurphy@winona.edu, 457-5180 (or Department Chair Jim Hurley, jhurley@winona.edu, 457-5172).

Attachments: A copy of a syllabus is attached. This is the current syllabus being used for the course, with the additional explanation of the writing flag outcomes and, specifically, where each outcome is addressed.

Writing Flag:

The purpose of the Writing Flag requirement is to reinforce the outcomes specified for the basic skills area of writing. These courses are intended to provide contexts, opportunities, and feedback for students writing with discipline-specific texts, tools, and strategies. These courses should emphasize writing as essential to academic learning and intellectual development.

Courses can merit the Writing Flag by demonstrating that section enrollment will allow for clear guidance, criteria, and feedback for the writing assignments; that the course will require a significant amount of writing to be distributed throughout the semester; that writing will comprise a significant portion of the students’ final course grade; and that students will have opportunities to incorporate readers’ critiques of their writing.

These courses must include requirements and learning activities that promote students'

abilities to...

 

 

 

 

 

  1. practice the processes and procedures for creating and completing successful writing in their fields;

The process students have to follow in this class is:

Working in teams of three or four, students perform a simulated audit during the semester, in a series of eight assignments, in which they gather evidence, create working papers, and form conclusions, in writing, with solid support for those conclusions. Some working papers are in the form of spreadsheets, others are in the form of memos summarizing discussions, observations, or other procedures. The conclusions, in the form of written memos, must be succinct, easy to understand, and supported by reasonable evidence. Each member of each team is required to individually write at least one, but usually two or three, conclusions (evidenced by their initials on each page). Their writing is then reviewed by at least one other member of the team before being handed in. The professor then reviews each assignment, grades it, and provides feedback within two days. The simulated audit represents 30% of each student’s grade. In addition, four exams are given during the semester (each 15% of a student’s grade) in which each student is asked a series of short answer / essay questions (roughly half the exam points). Questions often test the student’s ability to explain various auditing concepts in their own words. Exam grades are partially based on writing skills (grammar, style, and ability to communicate effectively).

b. understand the main features and uses of writing in their fields;

Working papers have a specific format that must be followed. A working papers book is useless unless another accountant can pick it up and understand what the auditors did, what they concluded, and why. Given the enormity of possible evidence, this is a daunting challenge. Students must keep this in mind as they write their conclusions for each assignment. With prompt feedback after each assignment, students have the chance to improve as they proceed.

c. adapt their writing to the general expectations of readers in their fields;

Writing in the field of auditing must be succinct. Students must be able to identify what elements of evidence are important and what are not. It is easy to write too much. Auditors are balancing audit effectiveness with audit efficiency. Students’ writing must reflect that understanding.

d. make use of the technologies commonly used for research and writing in their fields;

The simulated audit requires students to utilize special audit software common to the industry. They also must use Microsoft Excel for spreadsheets, Microsoft Word for written memos and conclusions, and they perform research using the Internet.

e. learn the conventions of evidence, format, usage, and documentation in their fields.

Working papers represent the conventions of evidence, format, usage, and documentation in the accounting field. Students are well aware of what constitutes quality working papers by the end of the simulated audit.

 

General Description of Auditing I:

Auditing I is considered, in essence, to be the accounting capstone course. Every accounting major must complete this course with at least a "C". Most Auditing I classes have approximately 12 to 20 students. Each student’s final grade consists of the following:

bulletFour exams (60%*) bulletSimulated audit, working with a team (30%*) bulletClass participation (10%*)

* The percentages sometimes change as requirements of the profession change.

Working in groups of two to four, students perform an audit of the revenue cycle of a fictitious company. Each team is required to create a working papers book. The term "working papers" has specific meaning within the accounting profession, with many requirements for good form. Throughout the course, each team performs various audit procedures in a series of assignments, documenting every step, concluding with their "opinion" of the revenue accounts of that company. Their working paper book includes:

bulletIndices and organizational documents (using Microsoft Word) bulletDocumentation of each audit procedure (using general audit software, provided in the simulation, to perform audit procedures) bulletSpreadsheets of their mathematical calculations (using Microsoft Excel) bulletDocumentation of research about the industry (from the Internet, using Word) bulletDocumentation of the team’s procedures and conclusions (using Word)

Each team is graded on ability to follow audit procedures, conciseness, use of "professional judgment", and ability to thoroughly document their work and findings using the form required of the auditing profession. The team’s final grade on the simulated audit constitutes 30% of each student’s final grade.

Each member of each team must individually write the conclusion to at least one assignment. The other members of the team review it. This ensures that everyone does some significant writing, and it is evidenced by the person’s initials in the top corner of the working paper. In addition to the simulated audit, each exam includes roughly half short answer / essay questions. Questions often test the student’s ability to explain various auditing concepts in their own words.

 

Proposed Syllabus

Acct 471/571 - Auditing I

 

Instructor: Pamela R. Murphy, SOM 324I

Website: http://course1.winona.edu/pmurphy

E-mail: pmurphy@winona.edu

Phone: 457-5180 or 1 800 242-8978 ext. 5180

Texts: Auditing & Assurance Services, by Messier, 2nd edition

Ready Notes for Auditing & Assurance Services

SCAD V, A Simulated Case for Audit Decisions, by Felix, Niles, and Andrus

Objective: Acquire fundamental knowledge and understanding of basic financial auditing concepts, processes, and requirements for typical business entities. Become acquainted with professional standards, ethics requirements, and the legal environment of the public accounting profession.

Methods: Class time will consist of a combination of lecture and discussion. Class participation as well as team participation is expected and will be part of your grade. Preparation for each class (reading and/or audit work) is expected. Lectures will not cover all the material in the exams.

Grades: Grades will be calculated as follows:

Exams (three during the semester): 45% of your term grade

Final exam: 15% of your term grade

Simulated audit (team project): 30% of your term grade

Attendance / participation: 10% of your term grade

Final grade based on 90 – 100% = A, 80 – 89% = B, 70 - 79% = C, etc.

Writing Flag: This course satisfies three semester hours of the writing flag requirement in the

University Studies Program. The course includes requirements and learning activities

that promote students' abilities to...

a. practice the processes and procedures for creating and completing successful writing in their fields;

b. understand the main features and uses of writing in their fields;

c. adapt their writing to the general expectations of readers in their fields;

d. make use of the technologies commonly used for research and writing in their fields; and

e. learn the conventions of evidence, format, usage, and documentation in their fields.

Each specific outcome above is listed by its corresponding letter ("a" through "e") for each assignment and / or exam.

Exam Closed book tests are scheduled as follows:

Dates: Wednesday, 1/30 Chapters 1, 2, 3, 4 (outcomes a, b, c, d, e)

Wednesday, 2/27 Chapters 5, 6, 7 (outcomes a, b, c)

Friday, 3/22 Chapters 8, 10 (outcomes d, e)

Tuesday, 4/30 at 10:30 Chapters 17, 18, 19, 20 (outcomes a, b, c, d, e)

Exams: In terms of grading, each exam is roughly 1/2 multiple choice questions and 1/2 short answer / essay questions. No student has the RIGHT to take a make-up exam. I will make decisions regarding make-up exams on an individual basis. It is a privilege granted on rare occasion. Basically, if you haven’t been coming to class or participating much, you will NOT be allowed to take a make-up exam even if you have an excuse.

Simulated Teams of 3 to 4 people will be assigned in the first week of the semester.

Audit: Each team will work together on various in-class discussion questions, and a simulated audit (SCAD). Generally, all members of the team will receive the same grade for their audit (30% of your term grade). Exceptions may exist for a team member whose participation is significantly different from the others.

Attendance and Participation:

The learning experience is greatly enhanced by regular attendance and active participation. You will be graded on your attendance, participation, and preparation for each class. Don’t be worried about always having the "right" answer in class, but show me that you are prepared and have thought through the topic. You will also be graded at the end of the semester by each of your teammates on your level of participation in your simulated audit and in-class team discussion questions.

Schedule: We will cover the following topics:

Week of: Topic: Chapter SCAD Outcomes

1/7 Intro / Overview of Auditing 1, 2

1/14 Overview of Financial Stmt Audits 2, 3 I due 1/18 d, e

1/21 * Materiality and Audit Risk 3, 4

1/28 Evidence and Documentation 4 II due 2/1 a, b, c, d, e

2/4 Audit Planning and Audit Tests 5, 6

2/11 Internal Controls 6 III due 2/11 a, b, c, d, e

2/18 Info Technology and Auditing 7

2/25 Info Technology and Auditing 7 IV due 3/1 a, b, c, d, e

3/11 Audit Sampling 8, 10

3/18 Auditing the Revenue Cycle 10

3/25 Completing the Engagement 17 VI due 3/25 a, b, c, d, e

4/1 Audit Reports 18

4/8 Code of Conduct / Quality Control 19 VII due 4/8 a, b, c, d, e

4/15 Code of Conduct / Quality Control 19, 20 VIII due 4/19 a, b, c, e

4/22 Legal Liability 20

* denotes a short week. Any changes to this schedule will be announced in class.

Questions: Following are textbook questions that you should be prepared to answer in class:

Chapter: Questions:

1 17, 35, 37, 39 (MC 22, 23, 27, 30)

2 3, 11, 13, 35 (MC 21, 26, 28)

3 18, 34, 35, 38, 39 (MC 20, 22, 24, 26)

4 33, 34, 36, 38, 39 (MC 19, 23, 24, 25)

5 7, 35, 36, 38 (MC 21, 22, 23, 24, 29)

6 1, 12, 35, 38 (MC 18, 19, 22, 26)

7 15, 38, 44 (MC 19, 24, 25, 31, 34)

8 31, 33, 34, 37 (MC 16, 17, 20, 24)

10 1, 6, 41, 42 (MC 22, 23, 29, 32, 35)

17 27, 30, 34 (MC 11, 14, 15, 18, 23)

18 10, 11, 38, 43 (MC 19, 20, 25, 26, 27, 37)

19 31, 35, 37, 40 (MC 16, 18, 21, 24, 26, 29)

20 3, 7, 9, 33 (MC 17, 18, 19, 25, 26)