Applied External Audit

Commerce & Business Administration
Course Code
ACCT 4880
Semester Length
15 Weeks
Max Class Size
Method(s) Of Instruction
Course Designation
Industry Designation
Typically Offered
To be determined


Course Description
This course covers concepts and procedures of external auditing. The course builds on the technical components from previous auditing courses, focusing on external audit issues. Topics include documentation of business processes, information systems and internal controls for specific accounting cycles, applying sampling methods, executing audit procedures (both compliance and substantive tests) in different audit cycles such as sales and collections, purchases and payments and others based on a simulated audit and using CaseWare. The course demonstrates the proper approach to form conclusions based on audit procedures performed and audit evidence accumulated. The course assists students to understand the CPA Canada Handbook - Assurance requirements with respect to audit, review and special reports as well as compilation report.
Course Content

1. Revenue and collection cycle

2. Audit sampling and accounts receivable

3. Purchases, payables and payment cycle

4. The production, payroll, and finance and investment cycles

5. Inventory, property, plant and equipment; long-term debt; shareholders’ equity; revenues and expenses; and fraud

6. Completion of the audit and Auditor's Report

7. Special/Other engagements

Learning Activities

Lectures, seminars and case analysis. All methods of instruction apply to in class, hybrid and/or online modes of learning.

Means of Assessment

Evaluation will be carried out in accordance with the Douglas College Evaluation Policy.

Assignments &/or Tests   20%
Projects & Case analysis  40%
Final examination  40%
Total 100%

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:

1. Document a client’s business processes, information systems and internal controls for specific accounting cycles;

2. Apply sampling methods for specified procedures using IDEA software;

3. Execute well-documented specific audit procedures (both compliance and substantive tests) in different audit cycles such as sales and collections, purchases and payments and others based on a simulated audit and using CaseWare;

4. Describe the elements of a high-quality audit working paper and the importance of documentation;

5. Evaluate audit evidence accumulated from the specified audit procedures to identify potential misstatements and draw appropriate conclusions, considering materiality;

6. Demonstrate understanding and use of the CPA Canada Handbook – Assurance requirements with respect to audit, reviews, and special reports as well as compilation:

    • Explain how to gather evidence, and what level, depending on the type of engagement;
    • Differentiate between the different reporting requirements for each type of engagement;

7. Explain Auditor's Report, and apply different types of opinion to specific situations;

8. Apply audit procedures relating to subsequent events and analyze reporting implications.

Textbook Materials

Textbooks and Materials

Smieliauskas & Bewley, Auditing: An International Approach, latest Canadian edition. McGraw-Hill Ryerson, Toronto, or other textbooks as approved by the accounting department.

Access to CPA Canada Handbook – Assurance through Knotia will be provided.

Software required to be installed by students:

CaseWare Working Papers and CaseWare IDEA





No corequisite courses.


No equivalent courses.

Course Guidelines

Course Guidelines for previous years are viewable by selecting the version desired. If you took this course and do not see a listing for the starting semester / year of the course, consider the previous version as the applicable version.

Course Transfers

These are for current course guidelines only. For a full list of archived courses please see

Institution Transfer Details for ACCT 4880
Athabasca University (AU) AU ACCT 3XX (3)
Capilano University (CAPU) CAPU BFIN 4XX (3)
College of the Rockies (COTR) COTR ACCT 3XX (3)
Coquitlam College (COQU) No credit
Northern Lights College (NLC) No credit
Simon Fraser University (SFU) SFU BUS 2XX (3)
University Canada West (UCW) UCW ACCT 305 (3)
University of Northern BC (UNBC) UNBC COMM 3XX (3)
University of the Fraser Valley (UFV) UFV BUS 347 (3)
University of Victoria (UVIC) UVIC COM 2XX (1.5)

Course Offerings

Fall 2024