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San Beda College, a Catholic educational institution, is committed to the Christian formation of the Bedan Community as its
service to the Church, the Philippine society, and the world.
San Beda College envisions a community that is Fully Human, Wholly Christian, Truly Filipino, and Globally Competitive.
San Beda College aims to form its members in Faith, Knowledge, and Virtue
Inculcate in the students the Benedictine core values of prayer and work (ora et labora) that include Study, Community, and
Pursuit of Peace
AUDITING AND ASSURANCE SERVICES, PART I
ACC12
Theory of Accounts Financial Accounting and Reporting (ACC05) and Advanced Accounting Problems, Part II (ACC07)
Auditing and Assurance Services, Part II (ACC13)
6 units
I.
Course Description: This course initially deals with the basic concepts and methodology of auditing in general. It introduces assurance, attestation and
audit services; professional standards; and reports. The students are expected to get an overview of public accounting profession as distinguished from internal
and compliance audits. The discussion also covers the need for assurance standards, the role of materiality and risk and the standards of quality control in
monitoring the performance of public accounting firms. It also introduces the practitioners responsibilities for ethical behavior and legal liability. The course
also addresses the concepts of evidence, client strategies and the audit and assurance processes and the consideration of internal control in a financial statement
audit covering a risk-based approach. It also highlights the
role of sampling in audit tests. The importance and nature of compliance and substantive tests
are thoroughly covered along with the audit approach by transaction cycle. Intensive and substantive discussions of the audit report and related considerations
are then taken towards the end. It completes the discussion of procedures, addressing the practitioners considerable responsibilities when completing an
engagement like auditing accounting estimates, the review of subsequent events, communicating with the audit committee, inquiries with legal counsel,
management representation letters and forming an opinion on financial statements. Also discussed in detail are the basic professional values and the Revised
Code of Ethics for Professional Accountants in the Philippines and the SECs Code of Corporate Governance.
Define and discuss the different facets of assurance and non-assurance engagements that professional accountants may perform.
Identify and discuss the basic steps necessary to plan and complete a financial statement audit.
Prepare the basic auditing reports on financial statements and internal controls.
Recognize and relate management assertions and audit objectives for financial statements to evidence accumulation (the purpose of audit objectives is to
accumulate evidence to test management assertions about the financial statements.)
5. Explain audit responsibilities and actions with appropriate management assertions and audit objectives (an auditor needs to know what they have to do and
actions to take in order to meet the objectives of an audit.)
6. Evaluate evidence accumulation and determine the appropriate type of reports to issue (in order to issue the correct type of report for audits, auditors need
to understand what the evidence is telling them.)
7. Test transactions and balances (an auditor must understand how to substantively test the transaction cycles and how to test the controls of these same cycles
to provide assurance in both the audit of financial statements and the audit of internal controls over financial reporting.)
8. Relate the traditional financial statement audit with review engagements, other assurance engagements and related services.
9. Define, discuss and apply the basics of the legal and regulatory environment including the code of professional ethics and the professional and technical
standards affecting the accounting and auditing profession.
10. Demonstrate the five (5) Cs of learning accounting, namely: Critical thinking; Communication proficiency; Computer technology efficiency;
Commercial ethical practice and Community involvement.
11. Integrate the Benedictine values and ideals of work, study, prayer, stability and order, obedience, discipline, humility, stewardship, integrity, and
community in learning the basic skills in accounting.
2
Time
Allotment
1st Week
Course Topic
Teaching Strategies/Activities
COURSE ORIENTATION
FUNDAMENTALS
OF
ASSURANCE Discussion
SERVICES
Group sharing
Concept of Assurance Services
Interaction
Elements of Assurance Engagements
Classification of Assurance Engagements
The Future of Profession
1st Week
Assessment of
Learning
OVERVIEW OF AUDITING
Philosophy of Auditing
Definition of Auditing
Objectives and General Principles Governing
Audit of Historical Financial Information
Audit Engagement Process
Theoretical Framework of Auditing
Rationale of Auditing
Discussion
PowerPoint Presentation
Recitation
Case Study
Homework
Recitation
Homework
Recitation
Case
Analysis
Report
necessity of auditing
Understand the different types of
audit and its importance to the
business entities.
Analyze the elements of the
theoretical framework of auditing
Give examples of limitations of
audit
9,10,11
9,10,11
2nd Week
3rd Week
Discussion
PowerPoint Presentation
Group sharing
Interaction
Case Study
Homework
Recitation
Case
Analysis
Report
Research
Report
Quiz 1
Homework
Recitation
Case Analysis
Report
Research
Report
9,10,11
4th Week
Discussion
PowerPoint Presentation
Group sharing
Interaction
Case Study
Homework
Recitation
Case Analysis
Report
Research
Report
Quiz 2
2,3,4,5, 6,
7
5th Week
FRAMEWORK
OF
FINANCIAL
STATEMENTS AUDIT
Overview of Risk Based Audit Process
1. Preliminary Engagement Activities
2. Audit Planning
3. Tests of Control
4. Performing Substantive Tests
5. Completing the Audit
6. Issuance of Auditors Report
7. Post Audit Responsibilities
Discussion
PowerPoint Presentation
Group sharing
Interaction
Case Study
Homework
Recitation
Case Analysis
Report
2,3,4,5, 6,
7
5th 6th
Week
Discussion
PowerPoint Presentation
Group sharing
Interaction
Case Study
Homework
Recitation
Case Analysis
Report
Quiz 3
4, 5,
6,10,11
Environment
Materiality in Planning and Performing an
Audit
The Auditors Response to Assessed Risks
7th 8th
Week
9th Week
10th 11th
Week
STUDY
AND
EVALUATION
OF
INTERNAL CONTROLS
COSO Framework and Definition of Internal
Control
Objectives and Inherent Limitations of
Internal Control
Types of Internal Control
Elements of Internal Control
Consideration of Internal Control in an Audit
of Financial Statements
Audit Considerations Relating to Services
Using Service Organizations
Communication
of
Internal
Control
Weaknesses Noted During Consideration of
Internal Control in an Audit of Financial
Statements
MIDTERM EXAMINATION
AUDIT EVIDENCE
Types of Audit Evidence
Characteristics of Audit Evidence
Audit Procedures
1. Categories
2. Specific
Discussion
PowerPoint Presentation
Group sharing
Interaction
Case Study
Discussion
PowerPoint Presentation
Group sharing
Interaction
Case Study
Homework
Recitation
Case Analysis
Report
Research
Report
Homework
Recitation
Case Analysis
Report
Audit Documentation
1. Nature and Purpose
2. Contents
3. Types
4. Ownership, Assembly and Custody
5. Confidentiality and Retention
different
types
of
audit
procedures
according
to
purpose and nature.
Discuss
the
auditors
responsibilities
in
audit
documentation (working paper).
2, 4, 5, 6, 7 At the end of the lesson,
student is expected to
Define audit
Sampling.
Differentiate
statistical
non-statistical sampling
Discuss and illustrate the
sampling plans: attribute
variable sampling plans.
the
12th 13th
Week
and
two
and
13th 14th
Week
AUDIT SAMPLING
Means of Testing
Nature and Purpose of Audit Sampling
Audit Sampling and Its Relationship to Audit
Risk
Approaches to Audit Sampling
Audit Sampling Plans
1. Attribute Sampling
2. Variable Sampling
Discussion
PowerPoint Presentation
Group sharing
Interaction
Case Study
Discussion
PowerPoint Presentation
Group sharing
Interaction
Case Study
Homework
Recitation
Case Analysis
Report
Research
Report
Quiz 4
Homework
Recitation
Case Analysis
Report
Quiz 5
3,6, 10, 11
14th 16th
Week
Discussion
PowerPoint Presentation
Group sharing
Interaction
Case Study
Homework
Recitation
Case Analysis
Report
Research
Report
Financial Statement
Summarized Financial Statement
8,10,11
9,10,11
16th Week
17th Week
18th Week
OTHER
ASSURANCE
AND
NON
ASSURANCE SERVICES
Examination of Prospective Financial
Information
Engagements
to
Review
Financial
Statements
Engagements to Perform Agreed-Upon
Procedures Regarding Financial Information
Engagements
to
Compile
Financial
Statements
Discussion
PowerPoint Presentation
Group sharing
Interaction
Case Study
Discussion
PowerPoint Presentation
Group sharing
Interaction
Case Study
Homework
Recitation
Case Analysis
Report
Research
Report
Quiz 6
Homework
Recitation
Case Analysis
Report
Research
Report
FINAL EXAMINATION
1. Pass the prerequisite subjects which are Theory of Accounts Financial Accounting and Reporting (ACC05) and Advance Accounting Problems Part II
(ACC07).
2. All other policies and procedures contained in the Manual of Regulations for Accounting Students AY 2014-2015.
MIDTERMS
FINALS
Students will be graded according to the following criteria:
Class Standing (Quizzes, Recitations, and other course requirements given during the
midterm and final term)
Departmental Final Examination result
Departmental Midterm Examination result
TOTAL
100%
GRADE SYSTEM:
Grade
Point
1.00
1.25
1.50
1.75
2.00
Equivalence
Description
97-100
92-96
87-91
82-86
77-81
Excellent
Superior
Very Good
Above Average
Good
10
2.25
2.50
2.75
3.00
5.00
72-76
68-71
64-67
60-63
Below 60
Very Satisfactory
Satisfactory
Fair
Passed
Failed
Course credits/units
1 unit
2 units
3 units
5 units
6 units
Allowable absences
3 hours
7 hours
10 hours
10 hours
10 hours
On probation
1 unit
2 hours
2 units
4 hours
3 units
6 hours
5 units
6 hours
6 units
6 hours
This allowance includes all absences, except approved absences as enumerated in Item no. 6. Students who incur accumulated absences beyond the
allowable number of hours are dropped from the course. They will be given a DF mark in the said course if the official dropping form is not accomplished.
VII. Course References
1. Prescribed Textbook:
Compilation of Engagement Standards issued by Auditing and Assurance Standards Council (AASC) (visit http://www.aasc.org.ph)
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Endorsed by:
Noted by:
Approved by: