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Oregon State University
College of Business – Accounting
Program
ACTG 427 -- Assurance and
Attestation Services
Fall 2008
Course Name: Assurance
and Attestation Services
Course Number: ACTG 427
Course Credits: Four
Course
Schedule: Twice per week in two hour
blocks on Mondays
and Wednesdays from 10:00 am -- 11:50 am
Course Location: Moss
Prerequisites: ACTG 319 with a grade of C or
better.
Instructor: Larry L. Brown, CPA
Office: Bexell 429
Phone: 541
737 3226 (Do not leave message)
503 799 2686 (Cell phone – it
is ok to leave message)
E-mail: larry.brown@bus.oregonstate.edu
Office
Hours: Monday 1:30 pm -- 3:30
pm
Tuesday 9:00
am – 10:00am
Wednesday 1:00
pm -- 2:15 pm
If you are unable to attend the “Office Hours”
contact me before or after class, via E-mail or phone and I will attempt to
meet with you at a time convenient to both of us. I am more than willing to assist you during
the course in understanding the course material. It will be to your advantage to seek
assistance as soon as you feel you need help. This class moves very quickly and
the material builds upon the prior information.
Your understanding of each topic is critical to your successful
completion of this course.
As for E-mails, I will make every attempt to respond
within 24 hours Monday – Thursday and 48 hours Friday-Sunday.
Changes to The instructor reserves the
right to make changes to this syllabus and the
Syllabus and schedule as necessary. Any changes to the course schedule, content
or
Tentative Schedule: syllabus
will be announced during a regular class period. It is your responsibility to keep track of
all pertinent changes.
Important
Dates: Last Day to Withdraw with a grade of “W”: Friday,
Nov. 14th
Final
Exam: Dec. 8-12th
Catalog Description: Assertions of enterprises gain credibility when examined by an
independent third party. Assurance and attestation provide credibility.
Coverage includes ethics, risk, materiality, internal control, evidence and
reporting
Learning
Materials: Auditing and Assurance Services (3rd Edition), Louwers, Ramsay,
Sinason,
Strawser. (ISBN No.
0-07-312824-4).
Case Study Book: The Lakeside
Company Case Studies in Auditing by Trussel & Frazer (ISBN No.
0-13-158851-6. The case study is used
for group projects --- you may purchase only one book for the group if this
helps save money.
Calculator:
4Function, no programmable calculators may be used for Exams.
[The
following two items are at the student’s discretion:
Study Guide to accompany Auditing
Auditing and Systems Exam Questions
and Explanations, Gleim]
Brief Overview: ACTG 427 will
be conducted by lecture, group exercise and some time spent reviewing homework
exercises. Our pace will be
approximately one textbook chapter per week.
You are expected to read and study the chapter and to prepare the
homework before each class meeting
Attendance: Regular attendance and class active participation are
imperative if this class is to be a meaningful experience for all
students. It is to your advantage
to attend class and participate in discussion. Attendance is critical to your
ability for understanding and be successful in this course. Attending class
provides the opportunity to judge your progress in learning the material and
prepares you for the exams. Class participation will not only increase your
understanding, but will assist the knowledge and understanding of all students
in the classroom. Students are expected to
participate in class discussion of assigned homework exercises and reading
materials. An excessive number of
absences and/or lack of active participation will be considered when
determining the final grade in this course.
Therefore, I reserve the right to adjust grades based on class
attendance and participation. It is
your responsibility to advise the instructor of any classes you anticipate
missing.
Measurable Student
Learning Outcomes:
After successfully completing this course, students will be able to
·
A study of techniques
available for gathering, summarizing, analyzing and interpreting the data
presented in financial statements and procedures used in verifying the fairness
of the information. Also emphasizes ethical and legal aspects and
considerations.
·
systematize the responsibilities of company
management, the audit committee, the internal audit function, and the company’s
public accountants with respect to corporate governance, internal controls, and
external financial reporting;
·
articulate how the public
accounting profession is shaped by its regulatory, self-regulatory, business
and legal environments;
·
frame the various elements
of the planning, testing and reporting phases of an audit in the context of the
overall audit objective and engagement risk assessment;
·
document an accounting
system, denoting key controls and control weaknesses;
·
estimate audit population
errors using statistical and no statistical sampling techniques, and deduce the
effect of these sampling results on the audit;
·
map from a set of facts
about a company and its financial statement audit to the appropriate audit
opinion on those statements;
·
research whether a set of
facts about an audit is consistent with Generally Accepted Auditing Standards;
·
elucidate on the causes,
methods, signs and consequences of corporate financial statement fraud;
·
converse knowledgeably on
the meaning and significance of professional ethics in the public accounting
and internal auditing professions;
·
Opine on the significance
and recent historical development of the independence-in-appearance standard in
the public accounting profession.
Classroom
ACTG 427 class policies are intended to promote and maintain a
professional
Environment
and atmosphere and
an appropriate learning environment. The
Accounting
Policies: Program at
All students
are expected to conduct themselves in a courteous and professional manner at
all times and prepare all assignments in a professional manner. Please do not come into class late, read
(textbook or newspapers) during class, sleep during class, talk excessively
with other students during lectures or otherwise be disrespectful to the other
students or the instructor. Such
behaviors are disruptive to the learning environment and could adversely affect
your final grade.
Please turnoff/mute all items that emit sounds and noises that may
interrupt the class (e.g., cellular phones, pagers), unless there is a specific
reason for needing notification during a particular class (such as a sick child
at home) and approval has been received prior to the beginning of that
class.
All graded assignments must be submitted by the day they are due. Late assignments will not be accepted and
receive a zero score. Exams will be
available for review but will not be returned.
I welcome grading-related
questions after homework or exams have been graded and returned/reviewed. However specific grading questions are
limited to the two week period beginning the day after the day the graded assignments
are returned in class or the exam results have been made available for review
Be judicious in your use of e-mail.
First try to contact me directly, either
in class or during office
hours. Questions that can be easily answered
from other sources (i.e., the course coverage,
syllabus, or assignments) are not judicious uses of e-mail. Be professional when writing e-mail – present
your point or request without making demands or accusations – be respectful and
use professional salutations. Check your
spelling and grammar as best you can. Be
aware that I may not reply to e-mail I consider frivolous or unprofessional.
|
Do |
Don’t |
|
Be professional |
Read during class |
|
Be courteous |
Sleep during class |
|
Arrive on time |
Talk excessively |
|
Allocate time to this
course |
Let your phone ring in
class |
|
Work assigned problems
prior to class |
Cheat |
|
Write professional
correspondence |
Send unprofessional
e-mails |
|
Attend the class you are
assigned |
Attend the other section |
Accounting
Department
Policies: CALCULATORS- No programmable calculators, cell phones, head phones or
computers may be used during exams. Only departmental approved
calculators will be allowed. Currently, only simple four function
calculators and financial calculators such as the TI BA series are approved for
exam use.
NO NOTES will be allowed on exams.
MIDTERM EXAMS -
Attendance is mandatory on scheduled test dates. Generally there will be no
"make-up" midterm exams. If you are unable to take an exam for
a legitimate reason acceptable to the instructor, your final exam will be given
additional weight proportional to the missing exam score. Exceptions to
this policy are at the discretion of the instructor.
NO MAKE UP OR EARLY FINAL EXAMS will be allowed. An exam session will be scheduled following the
regular scheduled exam time for students with exam conflicts. Only
students with a valid excuse for missing the regularly-scheduled final exam are
eligible to take the make-up exam.
ALL EXAMS
(midterm and final) WILL BE RETAINED BY THE DEPARTMENT. Any student who fails to turn in all or part of an exam will
receive an F (zero points) on the exam.
Evaluation of Course requirements include
examinations, a project, quizzes, homework
Student exercises
and professionalism, as discussed above.
The weighting of the course
Performance: requirements is as follows:
|
Assignment/Test |
Points |
|
Midterm
Examination No. 1 |
150 |
|
Midterm
Examination No. 2 |
150 |
|
Final
Examination |
250 |
|
Quizzes |
150 |
|
Ethics
Paper |
40 |
|
Cases -
Oral Presentation [Group] |
30 |
|
Cases -
Written Assignment/Paper [Group] |
60 |
|
IFRS Paper
|
40 |
|
New Audit
Client Project- Phase I [Group] |
30 |
|
New Audit
Client Project- Phase I [Group] |
60 |
|
Professionalism
(at instructors sole discretion) |
40 |
|
|
|
|
Total Possible Points |
1000 |
Extra credit is
at the instructors discretion based on activities during the term.
Grade Your course grade will be
determined by your performance based on the
Distribution: total
points earned throughout the entire class.
At my sole discretion I may award grades on a curve. If I do so, the
curve will be no higher than shown below. The curve may be lowered depending on
the distribution of the total points for the class. Any adjustment of the curve
will only be applied to the final grade.
At this time I do not intend to give plus/minus grades but I reserve the
right to do so if I believe that it is appropriate when awarding final grades.
|
A |
900-1000 |
|
B |
800-899 |
|
C |
700-799 |
|
D |
600-699 |
|
F |
Below 600 |
Examinations: There will be
three examinations, two midterms and a final.
See the assignment schedule for class dates. No make-up mid-term exams will be given after
the exam date. If you are involved in
campus activities or an ‘unavoidable conflict’ that will prevent you from
taking the exam at the scheduled time, you must make arrangements to take the
exam early. This is at the instructors
sole discretion with respect to ‘unavoidable conflicts’. If an unavoidable emergency arises,
preventing you from taking a mid-term exam when scheduled and you provide
sufficient evidence of this emergency the other Mid-Term and Final Exam grades
will be averaged.
There are no
example examinations. All material
presented in class is subject to examination.
Therefore there is no need to ask if material will or will not be on an
examination. You may bring a calculator,
pencil and eraser into the examinations.
No note cards or any other supporting materials will be allowed during
examinations.
No make-up
examinations for the mid-term examinations will be given after the examination
date. Students who miss an examination
without an excused absence will not be given a make-up examination and will be
given a score of 0.
The final
examination must be taken at the scheduled time during finals week. The final examination is mandatory. Students
who miss the final exam will receive a failing grade for the course.
Other Assignments
and Quizzes: Quizzes -There will be six
quizzes throughout the term as indicated on the class schedule. The quizzes will cover the information
included in the textbook chapters and modules and will consist of the questions
at the end of the respective chapter/module.
The length of the quizzes varies from approximately 15 questions to 36
quizzes. In total there are 150 quiz
questions each worth one point thus the quizzes are worth 150 points or 15% of
your total grade. Two of the quizzes are
take home and open boo; however you should indicate your answers on a properly
completed scantron sheet. The other four
quizzes will be in class and not open book; answers should also be indicated on
properly completed scantron sheets. No
make-up quizzes will be given except in unavoidable emergencies and then solely
at the instructors discretion. All
answers to quizzes should be submitted on
scantron shhets.
Ethics Paper- The ethics
paper assignment consists of three parts which will be further explained in a
memo you will receive on or about October 2, 2008. This memo will include specific instructions
and situations that you will need to address.
Points on this assignment will be based on both technical merit and
writing (correct grammar, spelling, conciseness, etc.). The paper is due on October 15, 2008. This paper should be submitted on paper at
the beginning of the class session indicated on the schedule attached.
Electronically submitted papers will be accepted in unusual circumstances with
prior approval.
IFRS Paper - On November
17, 2008 there will be no regularly scheduled class. There will be an IFRS (International Financial
Reporting Standards) conference that day [times to be announced]. You are required to attend a portion of that
conference in lieu of the regularly scheduled class. You will be required to sign the attendance
sheet and indicate the times attended as well as write a paper discussing
IFRS. Your paper should cover what is
IFRS, who is the governing body of IFRS, what is the status of implementation
of IFRS in the
Case Study Analysis (group project) - You will be required to review and analyze two cases throughout the
term as indicated below for your assigned group. Groups will be assigned the first day of
class. There will be 12 groups of 2-3 people
each. There will be two groups assigned to each case study. For both cases assigned to your group you
will be required to complete the ‘requirements’ [either exercises, discussion
questions, apply your research, etc.] as indicated below in writing. You will also be required to make an oral
presentation to the class for one of those two cases. All members of the group should participate
in both the written and oral assignments.
Points on the written assignments will be based on both technical merit
and writing (correct grammar, spelling, conciseness, etc.) Points on the oral
presentation will be based on technical merit as well as the oral presentation. You may wish to share a case book with the
others in your group. The written assignment should be submitted on paper at
the beginning of the class session indicated on the schedule attached. Make
sure your group number and the names ofyou’re your group members are included
on the first page. Electronically submitted papers will be accepted in unusual
circumstances with prior approval.
New Audit Client Audit Project (group project)- On or about October 6, 2008 you will be provided a memo that includes
information and Phase I instructions with respect to a ‘new audit client of the
firm that you are working for. Phase I
of this project, which is due on October 29, 2008, requires that you prepare
and submit a comprehensive list of the following:
1)
Information needed to complete the New Client
Acceptance Procedures.
2)
Information to be obtained or prepared from
the client personnel needed to gain an understanding of the clients operations
and accounting environment to prepare the preliminary audit plan.
3)
Information to be obtained or prepared by our
audit team needed to gain an understanding of the clients operations and
accounting environment to prepare the preliminary audit plan.
On or about
October 29, 2008 you will be provided additional information and Phase II
instructions with respect to this new audit client that you will need to review
and discuss as a group. Phase II of this
project, which is due on November 26, 2008, requires that you complete the
following:
1)
Prepare a list of risks (Issues/concerns)
identified based on the information provided.
2)
Prepare a list of key controls identified
from the information provided.
3)
Based on the information provided Identify
controls on which we may want to consider placing reliance and prepare draft
audit program steps with respect to tests of those controls.
4)
Based on the information provided prepare a
draft of the audit program with respect physical inventory observation audit
procedures. The draft audit program
should include at least identification of
coverage ( the locations to be selected), counts to observe (both ways),
cut-off information to obtain and format to follow as we will more than likely
need to ask personnel from other offices to observe some of the locations.
5)
Based on the information provided prepare a
draft of the audit program with substantive inventory audit procedures of year
end account balances including testing of raw materials and work in process at the foreign manufacturing
sites, in transit inventories, inventories at the retail locations as well as
other inventories as you deem appropriate.
You should also include any additional analytical procedures as you
determine appropriate.
6)
Prepare a list of additional information that
you believe you need in order to finalize the inventory and production cycle
audit program.
These
assignments should be submitted on paper at the beginning of the class session
indicated on the schedule attached. Make sure your group number and the names
of your group members are included on the first page. Electronically submitted
papers will be accepted in unusual circumstances with prior approval.
Code of Conduct: The following is from the
http://www.bus.oregonstate.edu/about/cobcodeofconduct.htm. As a member of the College of Business
Community I will:
·
treat others
with honesty, respect and courtesy
·
maintain the
highest levels of academic integrity
·
act in
accordance with my ethical and social responsibilities
·
strive to
foster a professional learning environment
·
act in a
professional manner
The
Code of Conduct for the
A reputation for personal integrity is
valuable in the business and broader world. A good reputation is created through
personal behavior and performance over time that is observed by friends,
colleagues, and business associates, both superiors and subordinates.
The students, faculty, administrators and staff of the
Academic Academic Dishonesty is not
tolerated. All University regulations
regarding
Dishonesty academic honesty apply to
aka Cheating: a test, homework assignment, project
or quiz, it will at a minimum result in a
grade of zero on the test or assignment and at a maximum result in a failing
grade (“F”) in the class. DO
NOT CHEAT. Cheating includes copying test material, using unacceptable
items during a test, copying or substantially using another students
(regardless of when, where, why or how) writing or return, plagiarizing or
using the ‘solutions’ to problems or assignments provided to other students in
previous classes. Academic dishonesty
rules apply both to the originator and the copier. You should guard your work carefully. If you are unsure what constitutes
plagiarism, please see me. I do not tolerate dishonesty and any
suspected dishonesty will be reported to the University and processed according
to their published academic dishonesty procedures. See Statement of Expectations for Student
Conduct at http://oregonstate.edu/admin/stucon/achon/htm.
Statement Accommodations are collaborative efforts between students, faculty and
Regarding Services for
Students with Disabilities (SSD). Students with accommodations
Students approved through SSD are responsible for contacting the faculty member
in
With Disabilities: charge of the
course prior to or during the first week of the term to discuss accommodations.
Students who believe they are eligible for accommodations but who have not yet
obtained approval through SSD should contact SSD immediately at 541-737-4098.
A
Little Personal I started my accounting career with Coopers & Lybrand (now
Background: PricewaterhouseCoopers-PwC)
in 1975 and was a partner in PwC from 1983 until my retirement in 2005. I served
numerous publicly and privately held clients in a variety of industries
including retail/distribution, real estate, construction, food processing and
manufacturing. I provided audit related
services to publicly held businesses and provided audit, review and compilation
services to privately held businesses as well as income tax planning and
compliance services to those businesses and to their owners and key management.
I assisted many of my clients in addressing
accounting, tax and operational issues such as identifying and analyzing
financing alternatives, evaluation of acquisition targets, entity formation and
structuring, preparing prospective financial information, evaluating capital
project alternatives, developing and evaluating accounting methods and
procedures and reviewing income tax planning strategies. .
I received a Bachelor of
Science degree in Business Administration (with a concentration in Accounting)
from
I am a member of the American Society of Certified Public Accountants,
Day
|
Date |
Chapter
|
Topic(s) Covered |
Items
Due |
|
Mon |
9/29 |
Chapter 1 Module A |
Introduction, Review Syllabus Auditing & Assurance Services Other Public Accounting Services |
Establish Groups |
|
Wed |
10/1 |
Chapter 2 Module B Module C |
|Professional Standards Professional Ethics Legal Liability |
|
|
Mon |
10/6 |
Chapter 3 |
Management Fraud & Audit Risk |
Quiz 1 Due |
|
Wed |
10/8 |
Chapter 4 and Appendix |
Engagement Planning |
|
|
Mon |
10/13 |
Review/Case Studies |
Review Quiz 1 Fraud Risk Materiality |
Quiz 2 (In class) Case No. 1 Presentation Case No. 2 Presentation |
|
Wed |
10/15 |
Chapter 5 Module E |
Risk Assessment & Internal Control Evaluation Sampling |
Ethics Paper Due |
|
Mon |
10/20 |
Review/Case Studies |
Review Quiz 2 & 3 Audit Risk & Analytic Procedures Assessing Control Risk Sampling for Attributes Sampling for Variables Review Chapters 1-5 |
Quiz 3 (In class) Case No. 3 Presentation Case No. 4 Presentation Case No. 10 Presentation Case No. 11 Presentation |
|
Wed |
10/22 |
Mid Term Examination |
Chapters 1-5 Modules A, B, C and E |
Mid Term Examination |
|
Mon |
10/27 |
Chapter 6 and Appendices |
Employee Fraud & Audit of Cash |
|
|
Wed |
10/29 |
Chapter 7 and Appendices |
Revenue and Collection Cycle Engagement
Planning |
New Audit Client Project- Phase I Due |
|
Mon |
11/3 |
Chapter 8 and Appendices |
Acquisition and Expenditure Cycle |
Quiz 4 (In class) |
|
Wed |
11/5 |
Review/Case Studies |
Review Quiz 4 Tests of Controls: Revenues and Cash Receipts Audit Procedures and Audit Documentation: Testing the
Inventory Purchasing System Designing Substantive Audit Tests: Compensation Plans |
Case No. 5 Presentation Case No. 6 Presentation Case No. 7 Presentation |
|
Mon |
11/10 |
Chapter 9 and Appendices |
Production Cycle |
|
|
Wed |
11/12 |
Review/Case Studies |
Review Quiz 5 Observation of Physical Inventory Count Review Chapters 6-9 |
Quiz 5 (In class) Case No. 8 Presentation |
|
Mon |
11/17 |
IFRS Conference |
International Financial Reporting Standards |
|
|
Wed |
11/19 |
Mid term |
Chapters 6 - 9 |
Mid Term Examination |
|
Mon |
11/24 |
Chapter 10 and Appendices |
Finance and Investment Cycle |
|
|
Wed |
11/26 |
Chapter 11 and Appendices |
Completing the Audit |
IFRS Paper Due New Audit Client Project- Phase II Due |
|
Mon |
12/1 |
Chapter 12 and Appendices |
Reports on Audited Financial Statements Resolving Audit Problems Review of Subsequent Events |
Case No. 9 Presentation Case No. 12 Presentation |
|
Wed |
12/3 |
Review & Course Evaluations |
Review Quiz 6 Review key concepts from Course |
Quiz 6 Due Course Evaluations |
|
Mon |
12/8 |
FINAL EXAMINATION |
Comprehensive |
FINAL EXAMINATION |
The
instructor reserves the right to make changes to this syllabus and the
schedule. Any changes will be announced
during a regular class period. It is
your responsibility to keep track of all
changes.
Note
that Case Study Papers are due (for both groups) at the same time as the Case
Study Presentation
Group Assignments
(Groups should consist of 3 students
subject to instructor approved exceptions)
|
Day & Date |
Case Number |
Assigned Group |
Requirement |
|
October 13 |
Case #1 |
Groups 1 and 7 |
Exercise No. 1(a) and 1(b) |
|
|
|
|
|
|
October 13 |
Case #2 |
Groups 2 and 8 |
Discussion Question No. 1
and Apply Your Research No. 2 |
|
|
|
|
|
|
October 20 |
Case #3 |
Group 3 and 9 |
Discussion Questions No.’s
3 & 8 and Apply Your Research No. 1 |
|
|
|
|
|
|
October 20 |
Case #4 |
Groups 4 and 10 |
Discussion Questions 1
& 3 and Apply Your Research 1 |
|
|
|
|
|
|
November 5 |
Case #5 |
Groups 1 and 7 |
Discussion Questions 1, 2,
7, 8 and 11 |
|
|
|
|
|
|
November 5 |
Case #6 |
Groups 4 and 10 |
Discussion Questions 1, 2,
3, 5 and 8 |
|
|
|
|
|
|
November 5 |
Case #7 |
Groups 5 and 11 |
Discussion Questions 1, 2,
3, 4 and 5 |
|
|
|
|
|
|
November 12 |
Case #8 |
Groups 2 and 8 |
Discussion Questions 2, 4,
5, 6 and 9 |
|
|
|
|
|
|
December 1 |
Case #9 |
Group 3 and 9 |
Discussion Questions 3, 4,
5, 6, 7 |
|
|
|
|
|
|
October 20 |
Case #10 |
Groups 6 and 12 |
Discussion Questions 1, 2,
3, 4 and 9 |
|
|
|
|
|
|
October 20 |
Case #11 |
Groups 5 and 11 |
Discussion Questions 1, 2,
3, 4 and 5 |
|
|
|
|
|
|
December 1 |
Case #12 |
Groups 6 and 12 |
Discussion Questions 2, 3,
8, 9 and 11 |
Note that cases above refer to the cases in the case study book: The Lakeside Company Case Studies in
Auditing by Trussel & Frazer (ISBN No. 0-13-158851-6) which was
included in the required learning materials listed above.