Course Description
This course covers concepts and procedures of external auditing. Topics include: reporting, professional standards and ethics, legal liability, audit objectives, evidence and documentation, planning and analysis, materiality and risk, internal control, sampling, and computer auditing including the use of data analytics tools. Attest procedures related to the revenue and collection cycle, acquisition and expenditure cycle, inventory and capital asset balances, production and payroll cycle, investments, long term debt and equity balances, and the finance and investment cycle are studied. Completion of the audit, including evaluation and communication of findings is also covered.
Course Content
- Professional standards, ethics and legal liability.
- Audit objectives, evidence, procedures and documentation.
- Planning, materiality and risk.
- Internal control.
- Audit sampling.
- Computer auditing including the use of data analytics as an audit tool.
- Revenue and collection cycle and acquisition and expenditure cycle.
- Inventory and capital asset balances, production and payroll cycle, and finance and investment cycle.
- Investments, long term debt and shareholders’ equity balances, and completion of the audit.
Learning Activities
Lectures, seminars and group discussions.
All methods of instruction apply to in class, hybrid and/or online modes of learning.
Means of Assessment
| Assignments/projects/cases/tests |
30% |
| Midterm examination |
35% |
| Final examination |
35% |
| |
100% |
Evaluation will be carried out in accordance with the Douglas College Evaluation Policy.
Students must write both the midterm examinations and the final examinations to pass the course.
To pass this course, students must obtain a minimum of 50% on invigilated assessments, with the 50% calculated on a weighted average basis.
Invigilated assessments include, in-class quizzes, in-class tests, midterm exam(s) and the final exam.
Students may conduct research as part of their coursework in this class. Instructors for the course are responsible for ensuring that student research projects comply with College policies on ethical conduct for research involving humans, which can require obtaining Informed Consent from participants and getting the approval of the Douglas College Research Ethics Board prior to conducting the research.
Learning Outcomes
At the end of the course, the successful student should be able to:
- Discuss the environmental context and issues relating to the attest function;
- Plan an audit taking into account concepts of evidence, risk and materiality;
- Evaluate internal controls;
- Explain sampling techniques and auditing in a computer environment using data analytics where appropriate;
- Discuss and perform audit procedures as and when appropriate;
- Explain the importance of data integrity and systems reliability in supporting effective decision making.
Textbook Materials
Textbooks and Materials to be Purchased by Students
Robertson & Smieliauskas, Auditing: An International Approach, latest Canadian edition. McGraw-Hill Ryerson, Toronto, or other textbooks as approved by the accounting department.
Instructor compiled materials (if applicable).
Faculty of Commerce and Business Administration approved calculators