PRINCIPLES OF AUDITING

Course Objectives:
The objective of this course is to help the student to start developing appropriate professional judgment by understanding the theory, concepts, and issues underlying the financial auditing process. The course provides students with an understanding of the role of auditing services in society as well as auditors' responsibilities and decision-making processes.

Course Description :
A study of the basic principles of auditing, internal control and financial audits. Duties and responsibilities of Internal Auditors and External Auditors and their functions in the control of financial records and statements are also studied. The course discusses the procedures used by public accountants in the verification of financial statements and other accounting data. It includes the legal responsibility and ethical requirements of the profession and the related standards of professional conduct.

Course Outline:

1. Overview of auditing, the market for auditing services
2. Legal aspects of auditing
3. Standard auditing requirements, general auditing standards, audit reports
4. Contractual/common law duties, negligence
5. Expectations gap
6. Professional practice, independence, professional influences
7. Audit objectives, evidence, documentation, risk, materiality
8. Audit approach, planning, internal control evaluation, internal control testing, substantive testing, specific auditing practices, audit programs
9. Owners/management auditors, audit committees, internal versus external auditing
10. Sampling techniques, analytical review
11. Information systems and audit
12. Current issues in auditing, contemporary case studies

Learning Outcomes:
By the end of this course, the student will be able to:

1. Appreciate the need for internal and external auditors
2. Understand the legal aspects of auditing
3. Understand the standard auditing procedures and practices
4. Understand the layout and functionality of the auditor reports
5. Understand how accounting information systems are audited

Skills to be developed:
This course helps students in developing the following skills:
1.Communication (Oral & written) Through Assignments, Case Study discussions and
Examinations
2.Analytical Through Case studies and examinations
3.Team Work Through Case studies
4.Creative Thinking Through Case studies, assignments, classroom
discussions
5.Adaptability to Change Through Case studies, and examinations
6.Ethics Through lectures and assignments
7.Use of Information Technology Through use of PCs, Internet, CD-ROM, Statistical
data base in the library


Evaluating Student Performance:
Class participation and attendance 10%
Audit case 40%
Mid-term examination 20%
Final Exam 30%

Midterm and Final exams will include multiple choice, short-answer, and essay questions. Specifics regarding exam format and covered material will be discussed in class prior to the exam date include objective questions (multiple choice, matching, etc.).

Grading:
Percentage Score Letter Grade GPA Points Percentage Score Letter Grade GPA Points

90 – 100 A 4.0 70 - 74 C 2.0
85 - 89 B+ 3.5 65 - 69 D+ 1.5
80 - 84 B 3.0 60 - 64 D 1.0
75 - 79 C+ 2,5 < 60 F 0.0
Educational Resources: 

Course Schedule & Outline:
Sixteen Week Semester, 3 hrs/Wk