Curriculum Guideline

Applied External Audit

Effective Date:
Course
Discontinued
No
Course Code
ACCT 4880
Descriptive
Applied External Audit
Department
Accounting
Faculty
Commerce & Business Administration
Credits
3.00
Start Date
End Term
Not Specified
PLAR
No
Semester Length
15 Weeks X 4 Hours per week = 60 Hours
Max Class Size
30
Contact Hours
Lecture: 4 Hours per week
Method Of Instruction
Lecture
Online
Hybrid
Methods Of Instruction

In class or online: lectures (live or video), group discussions, case analysis, and projects.

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 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. Demonstarte 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.

Means of Assessment
Assignments &/or Tests   20%
Projects & Case analysis  40%
Final examination  40%
  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.

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

 

Prerequisites

ACCT 4750 with a grade of C or better 

 

Corequisites

Courses listed here must be completed either prior to or simultaneously with this course:

  • No corequisite courses
Equivalencies

Courses listed here are equivalent to this course and cannot be taken for further credit:

  • No equivalency courses