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COURSE NUMBER : APC 3

COURSE NAME : AUDITING AND ASSURANCE CONCEPTS AND
APPLICATION 1
PRE –REQUISITES :
TERM OFFERING : SECOND TRIMESTER S.Y. 2021-2022
COURSE CREDIT : 3 UNITS
CLASS TYPE : MODULAR SCHEME (100% ONLINE)
COURSE TIME FRAME : Week 5 to 8
CLASS SCHEDULE : MORNING (January 24 to February 19, 2022)
CLASS ADVISER : DR. GLEN DE LEON, CPA

CONSULTATION TIME :

COURSE DESCRIPTION

This course deals with the study and application of audit procedures in the external audit
of financial statements. It tackles detailed process and approaches to situational problems
usually encountered in the audit of cash, revenue and receipt cycle, expenditure and
disbursement cycle, and production cycle

COURSE/SUBJECT LEARNING OUTCOMES/OBJECTIVES

Upon completion of the course the students will be able to:

1. Identify audit objectives and evaluate internal controls considerations for audit of
cash, revenue and receipt cycle, expenditure and disbursement cycle, and
production cycle
2. Understand the process for audit of cash, revenue and receipt cycle, expenditure
and disbursement cycle, and production cycle
3. Appreciate the importance of the audit planning and internal control considerations
in audit process
4. Appreciate the importance of audit documentation in the audit process
5. Formulate and apply appropriate audit procedures for audit of cash, revenue and
receipt cycle, expenditure and disbursement cycle, and production cycle
6. Prepare and complete audit documentations related to cash, revenue and receipt
cycle, expenditure and disbursement cycle, and production cycle as bases for the
audit report

At the end of the course, the student Relation to BUGA Relation to Program Outcomes
should be able to research, analyze,
report & apply to real-life situations
(internship and future employment / BUGA BUGA BUGA BUGA BUGA BUGA
PO 1 PO 2 PO 3 PO 4 PO 5
entrepreneurial opportunities) the 1 2 3 4 5 6
  following course objectives:

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2  
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4  

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Dr. Glen de Leon, CPA

Prepared By Noted By Approved By

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COURSE OUTLINE

LEARNING
TOPICS and DELIVERABLES SCHEDULES MATERIALS
OUTCOMES
Introduction and To discus with the Session 1  Syllabus
Orientation students the topic contents
of the syllabus, policies
regarding examinations,
 
assignment, class
attendance, and
punctuality, and class
participation.
 Correction of Errors To discus with the Sessions 2,3 Textbook and After studying
students the following Materials from this chapter, you
topics: CANVAS
should be able to:
Errors Define error.

Prior Period Errors Enumerate and

Types of Errors describe the
1. Statement of Financial different types of
Position Errors errors.
2. Income Statement
Errors
3. Combined Statement of Identify the
Financial Position and effects of errors
Income Statement Errors in the accounts
presented in the
Counterbalancing and
Non-counterbalancing financial
Errors statements.

Omissions of the Prepare adjusting

following: journal entries to
1. Deferred expense (or correct errors.
Prepayments under the
expense method).

Deferred income (Pre-

collection under the
 revenue method).

Accrued expenses

Accrued revenues

To discus with the After studying

Cash and Accrual Sessions 4,5 Textbook and
students the following this chapter, you
Basis Materials from
topics: should be able to:
CANVAS
Cash Basis Accounting Describe cash
basis and accrual
Accrual Basis Accounting
basis of
accounting.

Compare and
contrast cash and
accrual basis of
accounting.

Apply cash basis

in accounting for
business
transactions.

Apply accrual
basis in
accounting for
business
transactions.

Use and apply

the T-accounts
approach in
solving
problems.

Translate accrual
income to cash
basis income and
vice versa.

Cash and Cash To discus with the Sessions 6,7 Textbook and After studying
Equivalents students the following Materials from this chapter, you
topics: CANVAS
should be able to:
Definition of Cash
Identify what
Cash Equivalents items are
Petty Cash Fund included as cash
and cash
Bank Reconciliation equivalents.

Calculate the
correct balance
of petty cash
fund.

Identify bank and

book reconciling
 items.

Prepare bank
reconciliation
and proof of
cash.

Loans and Sessions 8,9,10 Textbook and After studying

To discus with the
Receivables Materials from this chapter, you
students the following
CANVAS should be able to:
topics:

Receivables Define and

identify the
Classification of different
Receivables
classification of
Initial Recognition receivables.

Initial Measurement Explain the

Subsequent Measurement initial
recognition,
Trade and Cash Discounts initial
measurement,
Freight Charge
subsequent
Loans Receivable measurement,
financial
Receivable Financing
statement
presentation and
derecognition of
receivables.

Explain the
accounting of
discounts and
freight and how
will it affect
receivables
account.

Apply the
different methods
of accounting for
bad debts.

Explain and
identify the
different methods
of receivable
financing.

Calculate the
correct balances
of receivables
and related
accounts.
 Midterm Examination Session 11
Inventories To discus with the Session 12, 13 Textbook and After studying
students the following Materials from this chapter, you
topics: CANVAS should be able to:
Inventories
Describe
Initial Recognition
inventories of
manufacturing
Initial Measurement companies and
servicing
Repurchase Agreements companies.

Consignment Agreements Describe the

initial
Trade Discount and Cash recognition,
Discount initial
measurement,
Accounting for Purchases
subsequent
Subsequent Measurement measurement,
of Inventories derecognition
and financial
Inventory Estimation statement
presentation of
Purchase Commitments inventories.
Derecognition Identify the
situations in
which periodic
system is
appropriate.

Identify the
situations in
which perpetual
system is
appropriate.

Compare and
contrast
perpetual and
periodic
inventory system.

Account properly
purchase
commitments
and inventory
transactions
denominated in
foreign currency.

Account properly
changes in
inventory method
and inventory
error.

Calculate the cost

of inventory
using inventory
estimation.

Describe the
 difference
between full
PFRS and PFRS
for SMEs.

Calculate the
correct balance
of inventory and
related accounts.

Financial Assets and To discus with the Session 14, 15, 16 Textbook and After studying
Investment in Equity students the following Materials from this chapter, you
Securities topics: CANVAS should be able to:
Investments
Identify and
Initial and Subsequent describe the type
Measurement of financial
instruments.
Financial Instrument
Identify and
Financial Assets and explain the
Financial Liabilities different
classifications of
Debt and Equity financial assets.
Securities

Impairment and Reversal Describe the

of Impairment initial
recognition,
Derecognition initial
measurement,
subsequent
measurement,
reclassification,
derecognition,
and financial
statement
presentation of
financial assets.

Differentiate
financial asset
and investment in
equity securities
under full PFRS
and PFRS for
SMEs.

Differentiate the
accounting for
FVTPL,
FVTOCI and
FAAC.

Property. Plant and To discus with the Session 17, 18, 19 Textbook and After studying
Equipment students the following Materials from
 topics: CANVAS this chapter, you
should be able to:
Property. Plant and
Equipment
Describe
Initial Recognition property, plant
and equipment.
Initial Measurement and
Subsequent Measurement
Describe initial
Modes of Acquisition recognition,
initial
Borrowing Cost
measurement,
Depreciation subsequent
measurement,
Impairment derecognition
and financial
statement
presentation of
property, plant
and equipment.

Explain
accounting for
government
grants and
assistance.

Explain
borrowing cost
and enumerate
the types of
borrowing cost.

Compute for the

capitalizable
borrowing cost.

Difference
property, plant
and equipment,
government
grants nad
borrowing cost
under full PFRS
and PFRS for
SME.

Calculate the
correct amount of
property plant
and equipment
and its related
accounts.

Final Examination and

Sessions 20
submission of course
  requirements     
 METHODOLOGY

To help students accomplish set learning outcomes, instructional activities are

collaborated with the students. Students are informed that they can send questions or
anything they need to clarify via on-line such as emails and CANVAS.

Students will be assigned specific topics as outlined in the syllabus for oral reporting
wherein non-reporting students are encouraged to raise questions during the reports
presentation. Students are also encouraged to engage in interactive lectures as facilitated by
the Professor.

The use of CANVAS is also part of instructional and learning activities.

At the end of every meeting, students will be asked to assess or provide feedback as
self-reflection about the topics reported and must be able to synthesize the issues raised and
discussed on that day.

MATERIALS

Learning Resources
A. Internet References
Youtube Videos

B. Reference Books
 Assurance Principles, Professional Ethics and Good Governance 2020 Edition by Cabrera
 Auditing Theory 2020 Edition by Salosagcol, Tiu, And Hermosilla
 Philippines Standards on Auditing
 COSO Framework
 Applied Auditing by Cabrera 2020
 Applied Auditing by Asuncion, Ngina and Escala 2020

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QUANTIFIABLE MEASUREMENTS

Students are graded according to the Baliuag University’s standard grading system.

Period Grade will be based on the following:

Periodical Examination 40%

Quizzes 30%
Performance 20%
Decorum (such as your attitude, attendance and discipline) 10%
----------------
Total 100%
 One trimester has three (3) grading periods, Prelim grade, Midterm grade and Final grade. Every
period grade will be given to the student after each major examination, so they will know their
standing in each period.

Baliuag University is implementing the cumulative grading system wherein the period grade is
computed as 1/3 of the previous added to the 2/3 of the present grade e.g.

Prelim Grade = as computed for the period

Midterm Grade = 1/3 prelim grade + 2/3 computed midterm grade
Final Grade = 1/3 midterm grade + 2/3 computed final grade

BALIUAG UNIVERSITY OFFICIAL GRADING SYSTEM

Grade Point Qualitative Description Quantitative Description

1.00 EXCELLENT 99-100
1.25 VERY GOOD 96-98
1.50 VERY GOOD 93-95
1.75 GOOD 90-92
2.00 GOOD 87-89
2.25 GOOD 84-86
2.50 FAIR 81-83
2.75 PASSING 78-80
3.00 PASSING 75-77
4.00 FAILED 70-74
5.00 FAILED BELOW 70
NO FINAL EXAM/FINAL
X REQUIREMENT
W WITHAWAL OR DROPPED  

CLASSROOM POLICIES – PLEASE REFER TO STUDENT HANDBOOK

Dr. Glen de Leon, CPA

Prepared By Noted By Approved By