1.Course Objectives
This course is an advance course in auditing. The course materials consist primarily of empirical research and case studies on the subject of auditing designed to provide a deeper understanding of topics covered in the first auditing course. Subject matters include the demand for auditing, the nature of the audit market, differences in audit approaches, auditor decision-making, audit sampling, and audit risk. In addition, selected topics are covered that do not receive coverage in the first auditing course, especially information systems auditing. Students are expected to gain the following:
a.An understanding of the economic nature of auditing and the demand for audit and assurance services.
b.Knowledge of diversity in audit practice, and the various tools available to assist auditors in the performance of the audit.
c.Factors that affect audit performance and audit risk.
d.The ability to communicate concepts orally and in writing.
2.Required Texts and Materials
Coursepack of selected readings and course notes – Distributed by professor.
Contemporary Auditing: Issues and Cases, Knapp, ITP/South-Western College Publishing Co., 4th Ed., 2001.
Information Systems Auditing and Assurance, Hall, ITP/South-Western College Publishing Co., 1st Ed., 2000.
Both texts are available at the Orange Bookstore only. Research readings and course notes will be distributed at least one class in advance.
The Research paper on The Impact of Internal Auditing on the Telecommunication Industry
... of getting the necessary logistics in conducting their audit. Auditing firms may lack enough qualified personnel nd ... three major categories namely, financial internal audit, operational internal audit and management audit. These have been identified and ... sub-headings: Introduction, historical background of auditing, definition of audit, definition of auditing, qualification of auditors of a public ...
Optional Materials
Auditing and Assurance Services: An Integrated Approach, Arens, Elder and Beasley, Prentice-Hall Inc. (or other auditing text).
Codification of Statements on Auditing Standards, AICPA.
3.Course Routine
Because this course is a seminar, attendance and participation by all members in class is expected and required. The course has been divided into several topics and segments. Although the format will vary by the topic covered, a typical class format is as follows:
Introduction to topic by professor
Presentation and discussion of research paper
Discussion of class discussion question found in course notes
Discussion of case
Topic wrap-up by professor
The professor will provide an introduction into each segment. Representative research studies and cases for each topic will then be discussed in class. For most research papers and discussion cases, one member of the class will be designated as the discussion leader. In addition to leading the discussion, the discussion leader will submit a written summary of the paper or case in a format prescribed by the instructor. The discussion leader will receive written feedback on his or her written evaluation and oral presentation the following class.
Each topic will have one or two major discussion issues. Each member of the class should prepare a written response to each question, which will be submitted at the end of class. In a seminar environment, the approach and conclusions of the authors of a research study should be critically examined. The comments of fellow class members and the professor are also subject to challenge for purposes of discussion. Students are expected to offer at least one comment every class.
4.Grade Determination
Total points in the class are tentatively planned as follows:
Points
Exams:
1st mid-term 75
2nd mid-term 75
Paper 100
3 ACL assignments 30
Discussion leader presentations
3 research papers and cases @ 30 points each 90
Participation 60
Total points 430
The Term Paper on Critical Examination Of Market Research For A Proposed Project
1.Introduction This document is a commentary that critically examines the research proposal for investigating the impact of marketing activity in the recruitment of students from the Republic of Ireland to the University of . This commentary looks at the rationale for carrying out the research and how the research methodology was derived. Before embarking on any research project Zikmund (2000) ...
The grading cutoff is expected to be approximately as follows: 390 points
375
360
345
330
A
A-
B+
B
B-
I will provide you with a summary of your class standing before the second mid-term exam. Course grading elements are discussed further below.
5.Exams
The first midterm will be held on Monday, March 3rd. The exam will be primarily essay questions on material covered to that date. The second mid-term is scheduled for Wednesday, April 23rd. The format of the second exam will be similar to the first exam, and will cover the material from the second half of the course (non-cumulative).
Copies of a previous exam will be distributed in class to indicate the nature and type of questions.
The essay exams will take longer than the normal class period. The exams will be scheduled at a mutually agreeable time for all the class members. Two class sessions will not be held during the semester to compensate for the additional time allocated to the exams.
6.Paper
One typewritten paper is required during the term on a topic agreed to by the student and professor. Generally, this will be an expansion of one of the topics covered in the course. The paper will consist of a literature review of the topic, followed by the development of a brief research proposal for an issue that you believe merits further research. The form and content of the papers will be discussed in greater detail before they are due. Each paper should be at least 10 pages in length, and are expected to be between 12-20 pages in length.
The due date for the paper is Friday, May 2nd. If you wish feedback on your paper prior to final submission, I am willing to review one draft of the paper any time before Monday, April 28th.
I will generally try to give you my comments within two days. In addition, you should provide me with your topic and a tentative reading list by Monday, April 7th.
Further instructions on the form and content of the paper will be distributed later in the term. Papers will be graded based on presentation and content. Presentation includes correct spelling and grammar, as well as organization, including use of headings and subheadings.
The Essay on Claire McCloud Case Assignment Questions
Strategic Management of Technology and Innovation Class Preparation for In-Class Discussion Feb 2, 2013 (Please prepare two page notes to bring to class) Claire McCloud Case Assignment Questions Please read the Claire McCloud case and the other three assigned articles about the management styles of Selina Lo (at Alteon), Andrea Jung (at Avon), and Christos Costsakos (at E-Trade). Prepare a two- ...
7.ACL Assignments
The middle section of this course includes an emphasis on information systems auditing. Three assignments using ACL generalized audit software and data on the CD-Rom included with Information Systems Auditing and Assurance will be collected and graded. The instructor will provide detailed requirements for completion of the ACL assignments.
8.Discussion Presentations and Assignment
Discussion leader responsibilities will be evenly divided among the class. Each class member will be assigned as the discussion leader three times (usually two research papers and one case).
Evaluation will be based on both the written evaluation and oral presentation.
Separate instructions are included in the course notes on the format and content of paper and case evaluations. Written evaluations should be approximately 4-6 double-spaced pages, and will be evaluated on both content and presentation, including organization. Oral presentations should be organized, with appropriate use of overheads. Because this is a seminar, presentations should not be presented using Powerpoint.
9.Participation
A total of 60 points are allocated for participation (note that attendance is expected).
Each member of the class is expected to actively participate in discussion. The professor will maintain records of participation during each class, including extent and quality of participation. Each topic has a major discussion question. Class members should be prepared with a response to the discussion question, along with supporting reasoning or justification. These written responses will be collected by the professor. They do not have to be typed, and one or two paragraphs should suffice. Feedback on your written questions and participation will be given using a +, , - system.
10.Academic Integrity
Consistent with the Academic Integrity Policy adopted by the faculty of the School of Management, honesty, integrity and respect for others are expected from students at all times. All students should have completed a certification statement available in the Office of Graduate Programs (Suite 222).
All assignments are expected to be original work, and any act of academic dishonesty will result in a zero grade for that assignment.
The Essay on Ellie Enterprises – Deloitte Audit Case
Alternative Investments Among the five funds, three of the funds, Cloudy Retirement 500 Index, Cloudy High-Yield Hedge Strategies, and Cloudy Real Estate All starts, are alternative investments. Those three funds, as the case states, are not registered under the Investment Company Act of 1940 or under the Securities Act of 1933. Thus, they are not offered to the investing public or are not been ...
11.Compliance with Rehabilitation Act Section 504 and Americans with Disabilities Act
Any student requiring special consideration because of any type of disability should make an appointment to meet with the course instructor.
12.Course Schedule
A detailed, tentative schedule for the course follows. A schedule with assignment of discussants for cases and research papers will be distributed by the second or third week of class. The instructor will also indicate specific page and concept requirements for the material in Information Systems Auditing and Assurance.
Advanced Auditing
Tentative Class Schedule – Spring, 2003
Date
Subject
Reading Assignment
Mon
1/13
Introduction to Audit Research
The Demand for Auditing
Wed
1/15
The Demand for Auditing
Audit Quality
Chow, C., “The Demand for External Auditing: Size, Debt and Ownership Influences”, The Accounting Review (AR) (April 1982) 272-290. Case 1.2, ESM Securities, Contemporary Auditing Issues and Cases. Mon
1/20
No Class – Martin Luther King Day
Wed
1/22
Audit Quality
Carcello, J., R. Hermanson and N. McGrath, “Audit Quality Attributes: The Perceptions of Audit Partners, Preparers, and Financial Statement Users”, Auditing: A Journal of Practice and Theory (AJPT) (Spring 1992): 1-15.
8.4, Yale Express System, Inc., Contemporary Auditing Issues and Cases. Mon
1/27
Audit Quality
Zhou, J., and R. Elder – “Auditor Size, Industry Specialization, and
Discretionary Accruals for IPO firms.” Enron Case
Wed
1/29
No Class
Mon
2/3
Audit Pricing
Ch. 1-2, Information Systems Auditing and Assurance
Case 1.6, Crazy Eddie, Contemporary Auditing Issues and Cases.
Advanced Auditing
Tentative Class Schedule – Spring, 2003
Date
Subject
Reading Assignment
Wed
2/5
Auditor Changes
Audit Opinions
Chow, C. and S. Rice, “Qualified Audit Opinions and Auditor Switching”, The Accounting Review (1982): 326-335. Bamber, E. and R. Stratton, “The Information Content of the Uncertainty-Modified Audit Report: Evidence from Bank Loan Officers”, Accounting Horizons (June 1997): 1-11. Mon
The Essay on Audit Risk Model Risks Auditor
Introduction Organizations today face several business risks that can have an effect on their financial statements. The audit risk model is a tool that auditors use to help identify those risks. To better understand how the audit risk model can help identify risks, we will examine how the model can be applied to the Coca-Cola Corporation and the limitations of using the model. Components of the ...
2/10
Audit Opinions – Going Concern
Geiger, M., and K. Raghunandan, “Going-Concern Opinions in the “New” Legal Environment”, Accounting Horizons (March 2002): 17-26. Case 1.7, Penn Square Bank, Contemporary Auditing Issues and Cases. Wed
2/12
Auditor Liability
Ch. 4, Information Systems Auditing and Assurance
Sullivan, J., “Litigation Risk Broadly Considered”, University of Kansas Auditing Symposium XI (1992): 49-59. Mon
2/17
Auditor Liability
Anderson, J., M. Jennings, D. Lowe, and P. Reckers, “The Mitigation of Hindsight Bias in Judges’ Evaluation of Auditor Decisions”, Auditing: AJPT (Fall 1997): 1-19. Case 8.5, First Securities (Ernst & Ernst v. Hochfelder) in Contemporary Auditing. Wed
2/19
Auditor Liability
Ch. 5, Information Systems Auditing and Assurance (p. 189 – 210) Case 8.6, Equity Funding in Contemporary Auditing.
Mon
2/24
Risk Assessment
Elder, R. and R. Allen, “A Longitudinal Field Investigation of the Relation Between Risk Assessments and Sample Size Decisions (2002 Syracuse University working paper).
Case 3.3, E. F. Hutton & Company, Inc. in Contemporary Auditing. Wed
2/26
Risk Assessment
Houghton, C. and J. Fogarty, “Inherent Risk”, Auditing: AJPT (Spring 1991):1-21. Case 1.1, Mattel, Inc. in Contemporary Auditing.
Mon
3/3
First Mid-term exam
Wed
3/5
Accounts Receivable
Ch. 6, Information Systems Auditing and Assurance
Case 1.4, ZZZZ Best in Contemporary Auditing.
Advanced Auditing
Tentative Class Schedule – Spring, 2003
Date
Subject
Reading Assignment
Mon
3/10
No Class – Spring Break
Wed
3/12
No Class – Spring Break
Mon
3/17
Accounts Receivable
Caster, P., “An Empirical Study of Accounts Receivable Confirmations as Audit Evidence”, Auditing: AJPT (Fall 1990) 75-91. Case 2.3, J.B. Hanauer & Co. in Contemporary Auditing.
Wed
The Term Paper on Auditors Role in Enron
The responsibility of an auditor is to express an opinion on the financial statements based on his audit which means verification or check in accordance with International Standards on Auditing. These standards require that the author complies with ethical requirements and performs the audit to obtain reasonable assurance whether the financial statements are free from material misstatement. An ...
3/19
Accounts Receivable – Revenue Recognition
Ch.7, Information Systems Auditing and Assurance
Case 8.7, National Student Marketing in Contemporary Auditing. Mon
3/24
Audit Sampling
Complete ACL Assignment 1
Waggoner, J., “Auditor Detection Rates in an Internal Control Test”, Auditing: AJPT (Spring 1990): 77-89. * Case 6.4, Tommy O’Connell, Audit Senior in Contemporary Auditing. Wed
3/26
Audit Sampling
Ch. 8, Information Systems Auditing and Assurance
Elder, R. and R. Allen, “An Empirical Investigation of the Auditor’s Decision to Project Errors”, Auditing: AJPT (Fall 1998): 71-87. Mon
3/31
No Class
Complete ACL Assignment 2
Wed
4/2
Audit Sampling
Burgstahler, Glover, S. and J. Jiambalvo, “Auditor Sensitivity to Error Projection and Uncertainty in the Evaluation of Error”, Auditing: AJPT (Spring 2000): 79-99. Case 2.6, Giant Stores Corporation in Contemporary Auditing. Mon
4/7
Auditor Judgment
Paper Topic Due
Ch. 9, Information Systems Auditing and Assurance
Houston, R., “The Effect of Fee Pressure and Client Risk on Audit Seniors’ Time Budget Decisions”, Auditing: AJPT (Fall 1999): 70-86.
Advanced Auditing
Tentative Class Schedule – Spring, 2003
Date
Subject
Reading Assignment
Wed
4/9
Auditor Judgment
Complete ACL Assignment 3
Cushing, B. and S. Ahlawat, “Mitigation of Recency Bias in Audit Judgment: The Effect of Documentation”, Auditing: AJPT (Fall 1996): 110-122. Case
1.8, Star Technologies, Inc. in Contemporary Auditing.
Mon
4/14
Auditor Judgment – Analytical Procedures
Anderson, U. and L. Koonce, “Evaluating the Sufficiency of Causes in Analytical Procedures” Auditing: AJPT (Spring 1998): 1-12. Case 1.3, U.S. Surgical Corporation in Contemporary Auditing. Wed
4/16
Governmental Auditing
Brown, C. and K. Raghunandan, “Audit Quality in Audits of Federal Programs by Non-Federal Auditors”, Accounting Horizons (September 1995):1-10. * Elder, R., “A Comment on ‘Audit Quality in Audits of Federal Programs by Non-Federal Auditors’,” Accounting Horizons (December 1996).
Copley, P., and M. Doucet, “The Impact of Competition on the Quality of Governmental Audits”, Auditing: AJPT (Spring 1993): 88-98. Mon
4/21
Assurance Services and New Professional Services
Hermanson, H., “An Analysis of the Demand for Reporting on Internal Control”, Accounting Horizons, (September 2000): 325-342. Alles, M., A. Kogan, and M. Vasarhelyi, “Feasibility and Economics of Continuous Assurance”, Auditing: AJPT (March 2002): 125-138. Wed
4/23
Second Mid-term exam
Mon
4/28
Course wrap-up
Fri
5/2
Final paper due
