COLLEGE OF BUSINESS ADMINISTRATION AND ACCOUNTANCY Course Title Dean’s Information

PHILIPPINE CHRISTIAN UNIVERSITY Auditing in a CIS Dean Jennifer Raquion, PhD

DASMARINAS, CAVITE Environment

Course Description Instructor’s Information

This course complements the course in auditing. It discusses information technology (IT) - related
Ian Segrid R. Baltero Cruz, CPA, MBA
risks, security and control mechanisms and techniques that may be employed to address the risks, and the
impact of computer use on the audit. It also introduces computer assisted audit techniques and tools. In
this course, students gain an appreciation of the particular features and understanding of the risks involved
in auditing in a CIS environment, the CIS controls they would expect to find in this particular area, how Pre-requisite(s)/Co-requisite(s):
auditors use CAATs (Computer Assisted Audit Techniques) in this area. The students gain hands-on
experience in the use of computers in performing audits. Accounting Information System
This course complements the course in Auditing, but limited to the areas that have an immediate
consequence to information technology (IT) as used in business. It discusses the impact of information
technology on the auditor’s study and evaluation of internal controls with emphasis on the previously
learned IT-related risks and controls in a CIS environment. It tackles the audit of IT function as a whole and
the audit of CIS in support of financial statement audit. It introduces tools and techniques in auditing
around, auditing through, and auditing with the computer (using Audit Command Language [ACL] as
generalized audit software [GAS]). Moreover, the course also covers emerging IT-related topics affecting
the public accounting profession such as cloud computing and artificial intelligence.

Topics Enrichment Activities Assessment Tools Time Frame

Ethics, Fraud, and Internal Control Class discussion Quizzes 3 hours
ETHICAL ISSUES IN BUSINESS Video presentations Homework
FRAUD AND ACCOUNTANTS Case studies/ Group projects
The Fraud Triangle Oral recitation
Financial Losses from Fraud
The Perpetrators of Frauds
INTERNAL CONTROL CONCEPTS AND TECHNIQUES
COSO internal control framework
IT application controls
Backup process
 Topics Enrichment Activities Assessment Tools Time Frame
PART II – Transaction Cycles and Business Processes
The Revenue Cycle Class discussion Quizzes 3 hours
OVERVIEW OF REVENUE CYCLE ACTIVITIES Video presentations Homework
PHYSICAL SYSTEMS Case studies/ Group projects
Revenue cycle Oral recitation
Revenue cycle risks and internal controls
Point-of-sale (POS) systems, controls and issues

The Expenditure Cycle Part 1: Purchases and Cash Disbursements Procedures Class discussion Quizzes 3 hours
OVERVIEW OF PURCHASES AND CASH DISBURSEMENTS ACTIVITIES Video presentations Homework
PHYSICAL SYSTEMS Case studies/ Group projects
Expenditure cycle Oral recitation
Purchases Processing System
Cash disbursements system
Expenditure cycle risks and internal controls
Reengineering

The Expenditure Cycle Part 2: Payroll Processing and Fixed Asset Procedures Class discussion Quizzes 3 hours
The Conceptual Payroll System Video presentations Homework
The Physical Payroll System Case studies/ Group projects
The Conceptual Fixed Asset System Oral recitation

Prelim Examination Online exam/ Case study / Simulation 3 hours

PART III – Advanced Technologies in Accounting Information System

Enterprise Resource Planning (ERP) Systems Class discussion Quizzes 3 hours
What is an ERP? Video presentations Homework
ERP system configurations Case studies/ Group projects
Data warehousing Oral recitation
Risks associated with ERP implementation
Implications for internal control and auditing

Other Emerging IT-related topics Class discussion Quizzes 3 hours

Cloud computing Video presentations Homework
Artificial intelligence Case studies/ Group projects
Oral recitation
 Topics Enrichment Activities Assessment Tools Time Frame
PART IV – Computer Controls and IT Auditing
Auditing and Internal Controls Class discussion Quizzes 3 hours
OVERVIEW OF AUDITING Video presentations Homework
FINANCIAL AUDIT COMPONENTS Case studies/ Research
Audit planning Oral recitation
Management assertions
Audit risk
STRUCTURE OF AN AUDIT
OVERVIEW OF SOX

Auditing IT Governance Controls Class discussion Quizzes 3 hours

IT GOVERNANCE CONTROLS Video presentations Homework
ORGANIZATIONAL STRUCTURE AND CONTROLS Case studies/ Research
Segregation of duties within the centralized firm Oral recitation
The Distributed Model
Creating a Corporate IT Function
Audit objectives and procedures related to Organizational Structure
COMPUTER CENTER SECURITY AND CONTROLS
DISASTER RECOVERY PLANNING
OUTSOURCING THE FUNCTION

Midterm Examination Online exam/ Case study / Simulation 3 hours

PART IV – Computer Controls and IT Auditing (Cont’d)

Auditing IT Controls – Security and Access Class discussion Quizzes 3 hours
CONTROLLING THE OPERATING SYSTEM Video presentations Homework
CONTROLLING NETWORKS Case studies/ Simulations
ELECTRONIC DATA INTERCHANGE CONTROLS Oral recitation
Auditing IT Controls – Systems Development, Program Changes and Application Class discussion Quizzes 3 hours
Auditing Video presentations Homework
SYSTEMS DEVELOPMENT AND PROGRAM CHANGES Case studies/ Simulations
COMPUTERIZED ASSISTED AUDIT TECHNIQUES Oral recitation
Testing Computer Application Controls
Computer-Assisted Audit Tools & Techniques for Testing Controls
DATA STRUCTURES AND CAATTS FOR DATA EXTRACTION

Final Examination Online exam/ Case study / Simulation 3 hours

References:

Hall, James A. Accounting Information Systems. Tenth edition.

Romney, M. Accounting Information System. Eleventh edition.
Philippine Auditing Practice Statement 1013, Electronic Commerce — Effect on the Audit of Financial Statements
Philippine Standards on Auditing (PSAs)
Glossary of Terms (from AASC and IAASB)

Grading System:

Major exam 40%

Quizzes/ case studies/ simulations 30%
Homework 20%
Attendance/ Graded recitations 10%
Total 100%

*Final Grade is computed as the weighted average of periodic grades:

(Prelim + Midterm + Final) / 3 = Final grade