ACC/491 (Contemporary Auditing 1)
Week 1
Week 1 DQ 1
The American Institute of Certified Public Accountants (AICPA) and the Institute of Internal Auditors (IIA) have positioned the auditing professions to become assurance professions. What is the difference between assurance services, attestation services, and auditing services? What are the economic issues that drive the increased demand for assurance services?
Week 1 DQ 2
The Sarbanes-Oxley Act of 2002 has been described as the most far-reaching legislation affecting business since the passage of the 1933 Securities Act. What are the specific portions of the legislation that affect the external audit profession, and how do they affect the profession? How does the legislation affect the internal audit profession? What are some activities that are implied in the legislation, as well as activities that will likely emerge as companies implement various provisions of the act?
Week 1 DQ 3
Access the U.S. Securities and Exchange Commission (SEC) Web site,.sec.gov/”>http://www.sec.gov. What is the most recent litigation brought by the SEC against a public firm or against an accounting firm? Read the abstract of the complaint and download the document filed with the court. Comment on the nature of the litigation. What is the most recent Staff Accounting Bulletinthat provides guidance to the profession?
Week 1 Assignments:
Generally Accepted Auditing Standards(950+ Words)
Week 1 Summary
Week 2
Week 2 DQ 1
What is the purpose of engagement planning? What critical information should the auditor consider during engagement planning? How will this information affect the scope of the audit?
Week 2 DQ 2
What are the components of the audit risk model? How does the audit risk model affect an audit plan?
Week 2 DQ 3
The third generally accepted standard of audit fieldwork requires that auditors obtain sufficient, competent audit evidence to afford a reasonable basis for an opinion regarding the financial statements under examination. In considering what constitutes sufficient, competent audit evidence, a distinction should be made between underlying accounting data and all corroborating information available to the auditor.
Week 2 Assignments:
Contemporary AuditingPresentation(16 Slides)
Auditing, Attestation, and Assurance Services(700+ Words)
Comprehensive Question: 1-23
(Organizations associated with the public accounting profession) Several private and public sector organizations are associated with the profession. Listed below are activities pertaining to these organizations.
· License individuals to practice as CPAs.
· Promulgate GAAP.
· Issue Statements on Auditing Standards.
· Regulate the distribution and trading of securities offered for public sale.
· Establish its own code of professional ethics.
· Issue Statements of Financial Accounting Standards.
· Impose mandatory continuing education as a requirement for renewal of license to practice as a CPA.
· Issue disclosure requirements for companies under its jurisdiction that may exceed GAAP.
· Issue auditing interpretations.
· Cooperate with the AICPA in areas of mutual interest such as continuing professional education and ethics enforcement.
· Take punitive action against an independent auditor.
· Establish accounting principles for state and local governmental entities.
· Establish GAAS.
· Suspend or revoke a CPA’s license to practice.
· Week 3
Week 3 DQ 1
Why do auditors have to consider the internal controls of the organization? What are some key elements of internal control? Which are the most important? How will the auditor have to modify the audit program if the internal controls are deemed inadequate to support management assertions?
Week 3 DQ 2
How are the analytical procedures used in an audit engagement? What premise underlies the use of analytical procedures in auditing? What sources of information can an auditor use to develop expectations? Please provide examples.
Week 3 DQ 3
What are the two types of audit tests? What are some examples of each of these two types of tests? How will the auditor use the data gathered from these tests?
Week 3 Assignments:
Auditing, Attestation, and Assurance Services (1100+ Words)
Assessing Materiality and Risk (550+ Words)
Learning Team Assignment Assessing Materiality and Risk Simulation
Learning Team Assignment Ch.6-7 Textbook Exercises (1100+ Words)
5-29(Assertions) In planning the audit of a clients inventory, an auditor identified the following issues that need audit attention.
· Inventories are properly stated at the lower of cost or market.
· Inventories included in the balance sheet are present in the warehouse on the balance sheet date.
· Inventory quantities include all products, materials, and supplies on hand.
· Liens on the inventories are properly disclosed in notes to the financial statements.
· The client has legal title to the inventories.
· The financial statements disclose the amounts of raw materials, work in progress, and finished goods.
· Inventories include all items purchased by the company that are in transit at the balance sheet date and that have been shipped to customers on consignment.
· Week 4
Week 4 DQ 1
Why do auditors find it necessary to use sampling? What are the risks associated with sampling? How might these risks affect the audit conclusion?
Week 4 DQ 2
What is the importance of defining the population when performing audit procedures? How would defining the population affect the sample size? How would incorrectly defining the population affect the sampling unit?
Week 4 DQ 3
How does the auditor evaluate the results of audit procedures? What types of qualitative factors might the audit consider when encountering an error? How might the results affect the audit conclusion?
Week 4 Assignments
Results of Analytic Procedure (1100 Words)
Apollo Shoes Case (1200+ Words)
Week 5
Week 5Assignments:
Audit Sampling Case (1500+ Words)
Week 5 Summary
(Strategies for Testing Internal Controls)
11-6 a. Briefly describe three strategies for testing internal controls when information technology is used for significant accounting processing.
11-8What are the advantages and disadvantages of the computer-assisted audit technique known as parallel simulation?
11-9a. What is the difference between the conventional test data approach and the integrated test facility approach?
13-8List the steps involved in selecting and evaluating a nonstatistical or a statistical sample for tests of controls. Identify the professional judgments that must be made associated with each step.