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Course Description: The course is a three-unit subject intended to provide the students with concepts underlying the public accounting practice and the auditor as a professional. This subject tests the candidates’ conceptual knowledge and understanding of assurance and related services performed by professional accountants. Candidates should know and understand the nature of assurance and related services particularly independent audits of financial statements, the responsibilities of professional accountants; the audit process; audit objectives, evidence, procedures, auditing standards, and the elements of the independent auditors’ report. In all the areas included, the candidate shall apply the Philippine Standards on Auditing (PSA) and other regulatory laws and regulations in effect at the time of examination. Credit Units Contact Hours Prerequisites : 3 units : 50 hours, 1 meeting per week, 4 hours per meeting : Accounting 20/21
Course Outcomes: CO # 1 Description State, explain and discuss the nature of auditing, the type of audit, the characteristics if accounting, as a profession, the significant provisions of the Revised Accountancy Law, and the operations of public accounting firms. Explain and discuss the nature of audit objectives, evidences, procedures and techniques and apply the concepts and principles of internal control and techniques used to review and evaluate internal controls. PO1 3 PO2 1 PO3 2 PO4 1 PO5 1 PO6 1 PO7 3
2. Types of assurance engagements 3. Course Contents: Objectives Topics Fundamentals of Auditing and Assurance Services A. Regulation of the public accounting practice a. and objectives 2. Organizations that affect public accounting a. Introduction to assurance engagements 1. Discuss the basic principles of auditing 4. SRC Rule 68 B. Nature. Discuss the classification of audit and auditors Prelims 3 meetings Prelims Lecture/ PPT Presentation Problem-solving Board Exercises Assignments Seatwork Quizzes Recitations 1. Assurance service vis-àvis attestation services B. Introduction to auditing 1. Types of audits The Professional Practice of Accounting A. Standard-setting bodies 3. objective and elements 2. Regulatory government agencies b. Identify and discuss the impact of regulatory agencies to the exercise of accountancy 4. Practice of accounting profession 1. Accounting as a profession 2. philosophy. RA 9298 b. Discuss the environment of the accounting professions 3. Discuss the essence of auditing and assurance services in business.3 Demonstrate the concepts and methodology of statistic audit sampling and prepare audit reports under varying circumstances. Discuss the different standard setting bodies that affects the practice of accountancy 5. Discuss the attributes of a profession 2. Identify the elements of assurance engagements and cites actual examples of assurance engagements 3. The CPA’s professional responsibilities # of meetings Grading Period Teaching Learning Activities Lecture/ PPT Presentation Problem-solving Board Exercises Assessment Tools Assignments Seatwork Quizzes Recitations 1. Discuss requirement of the Philippine Accountancy Act of 2004 . 2 1 2 2 3 1 3 IV. Nature. Discuss the regulations set forth under the Code of Professional Ethics 6.
Quality control 4. Pre-engagement procedures D. PSA 240 – Fraud. Discuss development of responses to assessed level of risks at the financial statement level and assertion level.Direction. Preliminary analytical procedures c. 2. 1 meeting Midterms Lecture/ PPT Presentation Problem-solving Board Exercises Assignments Seatwork Quizzes Recitations . Audit Planning Requirements 1. Discuss the overview of the audit process. regulatory and other external factors. Industry. Considerations of the work of others (experts. Discuss the importance of supervision PRELIM EXAMINATION OCTOBER 21-22. and Noncompliance 1. Materiality d. Discuss the procedures used to obtain understanding of an entity and its environment. Discuss the elements of audit planning and its scope. including the applicable financial reporting framework B. Error. Discuss assessing the risks of material misstatement at the financial statement level and at the assertion level. Discuss the required understanding of the entity’s internal control. Rationalize and discuss the importance of risks assessment procedures in the pre-engagement stage of the audit. Knowledge of the business b.Philippine Standards on Auditing 2. 2. 2011 The Financial Statements Audit –Client 1 meeting Midterms Acceptance. Planning requirements a. other independent auditors) 2. Understanding and Lecture/ PPT Presentation Problem-solving Board Exercises Assignments Seatwork Quizzes Recitations 1.Code of Ethics 3.1. Internal control a. 3. The Generally Accepted Auditing Standards (GAAS) B. supervision and review PSA 315 and PSA 330 – Understanding the Entity and its Environment Including its Internal Control and Assessing the Risks of Material Misstatement A. Overall audit plan and audit program f. internal auditor. Assessing and managing audit risks e. 4. 3. Supervision and Monitoring A. Audit Planning. Overview of the audit process C. 4.
4.5 meeting Midterms Lecture/ PPT Presentation Problem-solving Board Exercises Assignments Seatwork Quizzes Recitations 1. procedures. Factors affecting sample size D. Evidences and Documentation A. Factors affecting sample design C. Post-audit responsibilities 1. 1. Define and contrast audit objectives. Discuss the nature and type of sampling 2. 5. 2. Attribute and variables sampling technique 4. Assessing the risks of material misstatement 1. Evaluation of sample results 1. Nature and significance B. Sample selection methods E. Testing procedures which do not involve sampling B. Non-statistical and statistical sampling 3. D. Assessment of control risks a) Test of controls b) Documentation C. Procedures. Subsequent discovery of omitted Lecture/ PPT Presentation Problem-solving Board Exercises Assignments Seatwork Quizzes Recitations .Nature and purpose 2. Completing the audit and audit report preparation B. Audit procedures / techniques D. 2011 Completing the Audit / Post-Audit 1 meeting Finals Responsibilities A. Audit working papers Audit Sampling A. Communicating with those charged with governance and management 1. Discuss and identify engagement wrap-up procedures 2.5 meeting Midterms Lecture/ PPT Presentation Problem-solving Board Exercises Assignments Seatwork Quizzes Recitations 6. Discuss the auditor’s post audit responsibilities MIDTERM EXAMINATION NOVEMBER 23 – 24. 3. 3. evidence and documentations Discuss reliability of audit evidence Discuss audit procedures and working paper documentations Audit Objectives.Sampling and non-sampling risk 5. Basic audit sampling concepts 1.Subsequent discovery of facts 2. approaches Distinguish statistical and non-statistical sampling Discuss the application of audit sampling for test of controls Discuss the application of audit sampling for substantive tests Discuss projection and estimation of errors in a given population Discuss evaluation of sampling results 1. Evidential matters C.documentation b.
Discuss reporting on comparatives Reports on Audited Financial Statements A. Other assurance engagements: procedures and reports 1. 2011 . Discuss the rules of modification of the audit reports 3.Audit of financial statements prepared in accordance with a comprehensive basis of accounting other than GAAP in the Philippines 2. Audit of a component of financial statements 3. Discuss professional requirements imposed by applicable standards for each line of service 1 meeting Finals Lecture/ PPT Presentation Problem-solving Board Exercises Assignments Seatwork Quizzes Recitations FINAL EXAMINATION DECEMBER 14 -17. Identify and discuss other assurance and nonassurance engagements that are provided by professional accountants in practice 2.Reports on summarized financial statements B. The unqualified auditor’s report B. Reports on compliance with contractual agreements 4.Examination of prospective financial information 2. Procedures and reports on special purpose audit engagements 1. Matters that do affect the auditor’s opinion D. Engagements to review financial statements C.Matters that do not affect the auditor’s opinion 2. Report on comparatives Other Assurance and Non-assurance Services A. Agreed-upon procedures regarding financial information 2. Discuss the preparation of audit reports 2.Compilation of financial information 1 meeting Finals Lecture/ PPT Presentation Problem-solving Board Exercises Assignments Seatwork Quizzes Recitations 1. Modified auditor’s report 1.procedures 1. Distinguish issues that do not lead to modification of the opinion and those that do not 4. Non-assurance engagements 1. Basic elements of the unqualified auditor’s report C.
. Shirley C. Computation of Scores: Prelims: Prelim Grade = 10%SW/A + 40% QUIZ + 50% EXAM Midterms: Raw Midterm Grade = 10% SW/A + 40% QUIZ + 50% EXAM Midterm Grade = 50% Prelim Grade + 50% Midterm Raw Score Finals: Raw Final Grade = 10% SW/A + 40% QUIZ + 50% EXAM Final Grade = 50% Midterm grade + 50% Raw Final Grade VIII. (2011). Textbook: Acl 657. South Western College Publishing. Ireneo..450218599 P538 2008 Acl 657. David N.V. Ohio 2010 Ireneo. Assessment Tools (AT) AT 1 2 3 Description Assignments and seatwork Examinations Recitations and quizzes CO1 60% 30% 10% CO2 60% 30% 10% CO3 70% 20% 10% CO1 10% 50% 40% CO2 10% 50% 40% CO3 10% 50% 40% VII. References: A.45 R358 2010 PICPA-MMR Committee on CPE (2008). Auditing and Assurance Principles . and James. George R. Cincinnati. Ricchiute. Auditing and Assurance Services 7th Edition. Teaching-Learning Activities (TLA) TLA Description 1 Lecture presentation 2 Problem-solving 3 Board exercises VI. Philippine Standards on Auditing. Jose M.
com.picpa. Auditing and Assurance Standards Council R. Micheal and Hermosilla. O.45076 B63 2008 Acl 657. Apolinario D. Reynaldo R. Lares Bookstore. Inc. (2008 Edition). Patrick R. Ray and Delaney. Auditing and Assurance Standards Council Philippine Standards on Related Services (PSRSs).com www. Auditing and Assurance Standards Council Philippine Standards on Quality Control (PSQCs).org. Auditing and Assurance Standards Council Practice Statements.. Tiu. Manila Cabrera. Inc. 2008) Philippine Standards on Auditing (PSAs). (2008 Edition).ph . Reviewer in Auditing Theory. 2008 B. New Jersey Code of Ethics for Professional Accountants in the Philippines (Effective June 30. Online References: www. Roel.Salosagcol. Comprehensive CPA Reviewer in Auditing Theory. 9298 – Philippine Accountancy Act of 2004 (Effective May 13.ph www.A. GIC Enterprises & Co.prboa. and Ocampo. Ma. Elenita Balatbat. Books: Acl 657.. 2008) C. Wiley CPA Exam Reviewer – Auditing and Attestation. Auditing and Assurance Standards Council Philippine Standards on Assurance Engagements (PSAEs). Auditing Theory and Concepts. Manila 2008 Whittington. Auditing and Assurance Standards Council Philippine Standards on Review Engagements (PSREs).45076 C112 2008 Acl 657. GIC Enterprises & Co. Hoboken. 2004) Rules and Regulations for the Accreditation of Accounting Teachers (Effective June 20.45076 W618 2008 Bobadilla. Jekell. John Wiley & Sons. Inc.aasc.
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