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School of Business
Department of Accountancy
Domenic J. Finelli
ACC 2430-100, AUDITING (Spring, 2017)
Tuesday and Thursday, 1:00 to 2:15 p.m. Room 2046 Bartley
Office Hours: Tuesday and Thursday, 2:30 to 4:00 pm, in Prof Borden’s office
Telephone: (610) 220-1034 (cell)
1 - Text: Auditing and Assurance Services, (Louwers,Ramsay,Sinason,Strawser and Thibideau) 6th edition,
2 - Blackboard: Course announcements, materials and other information will be posted on the course web site.
3 - PCAOB Auditing Standards – Available at
4 - IDEA - Software must be downloaded on individual student laptops. Refer to the IDEA attachment for

The focus of the course is on the professional duties and responsibilities of external auditors, although the role
of internal auditors will also be discussed. External auditors are subject to a complex set of demands from the
client, their firm, regulatory authorities, and the public at large. While investors, creditors, and regulators expect
external auditors to preserve the reliability of the financial statements of publicly held companies; audit clients
demand value-added advice, industry expertise, and a timely audit report. In addition, the competitive
atmosphere surrounding public accounting requires that a premium be placed on audit efficiency. Balancing the
demands of the public, the client, and the accounting firm is very challenging task for public accountants.

We will be studying the theory and practice of professional auditing. The successful completion of the course
provides a basic understanding of the nature of financial auditing, the writing of audit reports, the
responsibilities of auditors, generally accepted auditing standards, procedures related to the planning of an
audit, the assessment of materiality and audit risk, the collection of audit evidence, internal control evaluation,
analytical procedures, fraud assessment, assurance services, and professional ethics..


VII. EVALUATION AND GRADING First test Second test Modules B Assignment IDEA Group Project Risk and Estimate Group Project Final Examination Total 22% 22% 6% 12% 12% 26% 100% Letter grades are determined based upon the following scale: 93 and above: 90%-92. All assigned exercises and problems are to be completed before the assigned class period begins. IDEA provides a platform to illustrate the steps that auditors need to take related to data and data analysis while completing the financial statement audit. In advance of each class you should have read the assigned material. ASSIGNMENT ON MODULE B. DATA ANALYTICS GROUP PROJECT USING IDEA SOFTWARE Financial auditing is rapidly being transformed into an environment characterized by the availability of Big Data and advanced analytical tools by entry level professionals on the audit engagement.999%: 87%-89.  V. students are expected to join public accounting firms having completed coursework related to the use of data and analytical tools. PROFESSIONAL ETHICS You are responsible for self-study of this material.999%: C 60%-62.999%: CBelow 60%: F D D- VI. The power point slides and other materials related to the topics to be covered during class will be posted to the VU Blackboard site sufficiently in advance of each class for you to go through them as well. and then how to present data analyses in a persuasive format while documenting conclusions.999%: D+ C+ 63%-66. You may wish to print out these slides and other materials for your use in taking notes during the class. We will not go over this material in class. COURSE FORMAT AND PREPARATION FOR CLASS Class sessions will consist of lectures.999%: 83%-86. You should also read the Power Point slides available on Blackboard.999%: 67%-69. IDEA is one of the leading analytical tools being used in the audit environment.999%: 73%-76.999%: A AB+ B 80-82.999%: 70%-72.999%: B77%-79. As a result.IV. A quiz on this material will be administered on February 2. You are required to read Module B. Up to Rule 302. Contingent Fees. case studies and discussion. pages 595 through 614. Ethical Codes of Conduct. 2 . A critical issue that students must grasp is how to identify the right data to analyze given a set of facts and circumstances. 2017.

You should print and complete each in advance of each class. handing in work completed for another course without the instructor’s approval. A good place to start on identifying risks faced by an audit client is the Annual Report on Form 10 K filed with the SEC. Detailed instructions on the Group Project are attached to the syllabus and alos posted on Black Board. IX. Each “Self Test” is posted to Black Board. Missed Tests or Final Examination: No make-up tests are allowed for either of the first two tests or for the final examination. Class Participation and other: Students are encouraged to volunteer in class.For this group project students should form teams of 3 people each and provide the team member names at the start of class on January 19. 2017 and each team will be asked to present its findings in class. The violation will be reported by the instructor to the Dean’s office and recorded in the student’s file. and other forms of dishonesty. It is the student’s responsibility to be certain that the prerequisites have been successfully completed. VIII. the auditor needs to prepare an audit program that effectively addresses those risks. the student will be expected to complete an 3 . If at any time during the semester it is determined that a student has not completed the prerequisites. the student can be administratively dropped from the course without credit or tuition refund. Attendance: A reasonable number of unexcused absences is understandable. For this group project. students should form teams of 5 people each and provide the team member names at the start of class on January 19. we will go over a “Self Test” to reinforce our discussions. Those students who do not volunteer may be called upon at random. your second test would be worth 44% of your course grade (22% + 22% = 44%). 2017. If a student with a valid excuse fails to take either of the two scheduled tests. a student who violates the Code of Villanova University will receive 0 points for the assignment. Academic Integrity Policy: The Code of Academic Integrity of Villanova University addresses cheating. On occasion. the grade for the missed test will be added to the weighting of the other test. Failure to take the Final Examination will result in a zero grade for the Final Examination. The schedule of class topics included with this syllabus sets forth the advance preparation requirements for each class. fabrication of submitted work. Preparation: Each student is expected to read all assigned materials in advance. 2017. is you miss the first test. A report on the work of the team is due at the start of class on April 6. In addition. 2017. Detailed instructions on the Group Project are attached to the syllabus and also posted on Black Board. you may be asked to turn in your completed “Self Test” at the beginning of class. OTHER MATTERS Prerequisites: This course is restricted to Accounting majors and minors. For example. A report on the work of the team is due at the start of class on April 20. The purpose of this assignment is to help you identify risks and develop audit palns to effectively address those risks during the audit. once done. GROUP PROJECT ON IDENTIFYING AND ANALYZING RISK FACTORS AND CRITICAL ACCOUNTING ESTIMATES Identifying and assessing risk is an important aspect of the audit process. Further. For most classes. For the first offense. plagiarism.

you should be able to write and sign the following sentence: “I have neither given nor received assistance on this test/project. Attachments: Schedule of Class Topics and Assignments IDEA Group Project Information Risk Factots and Critical Estimate Information 4 . Registration is needed in order to receive The University policy is available at http://vpaa. If you are a person with a disability please contact me after class or during office hours and make arrangements to register with the Learning Support Office by contacting 610-5195636 or nancy. For the second program. When you turn in a project or exam. Physical and Learning Disabilities: It is the policy of Villanova to make reasonable academic accommodations for qualified individuals with disabilities. I certainly hope and expect there will be no violations of the integrity policy.mott@villanova. You are studying to work in an industry where integrity is perhaps the most important quality needed for success.villanova. the student will be dismissed from the University and the reason noted on the student’s official transcript.” This notice is not intended as a threat. It is intended to make you aware of the university’s academic integrity as soon as possible.

8 and 9 Read Chapter 11 5 .No Classes Apr 7 Apr 14 11 Acquisition and Expenditure Cycle and Production Cycle Test 2 Completing the Audit Apr 21 12 Audit Reports Read Chapter 12 Review Final Exam Review and Wrap Up Apr 28 May 5 8&9 Read Chapters 8 and 9 Chapters 6.TENTATIVE SCHEDULE OF CLASS TOPICS AND ASSIGNMENTS AUDITING (ACC 2430): Spring. 2016 Day Chap Topic Advance Text Readings and Assignments for Class Jan14 1 Read Chapter 1 Jan 21 Mod B Course Introduction. Overview of an Audit and Services Professional Ethics Jan 28 2 Professional Auditing Standards Read Module B and complete assignment Read Chapter 2 Feb 4 3 Engagement Planning Read Chapter 3 Feb 11 4 Management Fraud and Audit Risk Read Chapter 4 Feb 18 5 Read Chapter 5 Feb 25 Feb 29 –Mar 4 Mar 10 Mar 17 6 Risk Assessment: Internal Control Evaluation Employee Fraud and Cash Break – No Classes Test 1 Revenue and Collection Cycle 7 Mar 23-28 Mar 31 Read Chapter 6 Chapters 1-5 Read Chapter 7 Easter Recess. 7.