GORDON COLLEGE

OLONGAPO CITY
COLLEGE OF BUSINESS AND ACCOUNTANCY

SYLLABUS IN OPERATIONS AUDITING

ACC 116

Name of Faculty: Paul TJ C. Collantes

Pre-requisite: ACC 116
Credit Units: 3
Schedule: FRI – 11:00AM-2:00PM, 2:00PM – 5:00PM
Room: 207/OL

A. COURSE DESCRIPTION

This course covers the basic aspects of operational auditing, including the key topics of
conducting operational review. This course will enhance students’ understanding of management
practices and explore if they contribute or hinder the achievement of company’s objectives.

B. COURSE LEARNING OUTCOMES

At the end the course, the student should be able to:

1. Deliver concepts and plans for organized systems clearly both oral and written in English.
2. Prepare, analyze and evaluate internal controls.
3. Resolve issues and problems, with global and strategic perspective using knowledge and
technical proficiency in the areas of financial accounting and reporting, cost accounting and
management, accounting and control, taxation and accounting information system.
4. Conduct accounting researches in furtherance of accounting and auditing knowledge.
5. Apply the latest technology as a business tool in capturing financial and non-financial
information.
6. Apply the knowledge to properly respond from assessments.
7. Maintain ethics and professionalism.

C. COURSE OUTLINE AND TIME FRAME

Test
Week Topic
Definitions, Characteristics, and Guidance
Week 1
• Definition and Characteristics of Operational Reflection
Auditing Essay
• The Risk Based-Audit
• Auditing beyond Accounting, Financial and
Regulatory Requirements
• Identifying Operational Threats and Vulnerabilities
• The Skills Required for Effective Operational Audits
• Integrated Auditing
Week 2 Objectives and Phases of Operational Audits
Activities
• Key Objectives of Operational Audits Quiz
• Phases of the Operational Audit Seatwork
• Planning Essays
• Fieldwork Reflection
• Types of Audit Evidence
• Reporting
• Follow-Up
• People, Processes, and Technology

Week 3 Risk Assessments

Activities
• Identification of Risks Quiz
• Measurement of Risks Seatwork
• Assessing Risk and Control Types
• Business Activities and Their Risk Implications
• Future Challenges and Risk Implications

Weeks 4-5 The 7 Es

Activities
• Effectiveness Quiz
• Efficiency Seatwork
• Economy
• Excellence
• Ethics
• Equity
• Ecology

Week 6-8 Control Framework Activities

Quiz
• The COSO Framework Seatwork
• Control Environment
• Risk Assessment
• Control Activities
• Information and Communication
• Monitoring Activities

Tools

Week 9-12 • Histograms

• Control Chart Activities
• Pareto Chart Role-play
• Cause and Effect Seatwork
• Force field analysis
 • Flowchart/Process Flow Map/Value Stream Map
• Takt Time
• 8 areas of waste
• Affinity Diagram/KJ Analysis
• Check Sheet
• Scatter Diagram
• 5S
• RACI Diagram
• Communications Plan and Matrix
• Input, Process, Output
• Mistake Proofing
• Benchmarking
• 5 Why’s
• Work Breakdown Structure

Quality Control
Week 13-14
• Understanding Assertions and Using Quality
Improvement Methodologies Essay
• The Link Between Process Weakness and Internal Seatwork
Control
• Six Sigma
• ISO 9000 and ISO 31000

Documenting Issues
Week 15-16
• Criteria, Condition, Cause, Effect, Recommendation
• Making findings and recommendations persuasive Role-playing
• Using quantitative methods to improve quality and impact Activities
of audit findings
• Persuasion and diversion
• Developing useful, pragmatic and effective
recommendations for corrective action.
Continuous Monitoring
Week 17-18
• Continuous auditing of high-risk activities
• Using CAATTs to achieve operational excellence Presentation
Essay

D. REQUIRED READING BOOKS

H. Murdock, Operational Auditing Principles and Techniques for a Changing World.

E. SUGGESTED READING AND REFERENCES

Generally Accepted Auditing Standards from AICPA
F. COURSE REQUIREMENTS
1. Attendance and attitude
2. Class participation/ Reporting/ Class Activity
3. Quiz
4. Major Exams

G. GRADING SYSTEM

1. Activities 30%
2. Quizzes 20%
3. Participation & Recitation 20%
4. Major Exams 30%
Total 100

The student’s performance will be tracked numerically throughout the semester with the grading
system provided by the college.

Midterm Grade = 50%

Tentative Final Term Grade = 50%
Final Grade = 100%

98.50 - 100.00 1.00 82.50 - 83.49 2.20

96.50 - 98.49 1.10 81.50 - 82.49 2.30
94.50 - 96.49 1.20 80.50 - 81.49 2.40
92.50 - 94.49 1.30 79.50 - 80.49 2.50
90.50 - 92.49 1.40 78.50 - 79.49 2.60
89.50 - 90.49 1.50 77.50 - 78.49 2.70
88.50 - 89.49 1.60 76.50 - 77.49 2.80
87.50 - 88.49 1.70 75.50 - 76.49 2.90
86.50 - 87.49 1.80 75.00 - 75.49 3.00
85.50 - 86.49 1.90 72.50 74.49 CF
84.50 - 85.49 2.00 60.00 - 72.49 5.00
83.50 - 84.49 2.10

LEGEND:
INC – Incomplete CF - Conditional Failure
DRP - Officially Dropped NFE - No Final Exam
FDA - Failure Due to Absences
 H. CLASSROOM POLICIES

General
1. Arrive to class on time and stay for the entire class period.
2. All electronic devices must be turned off and hidden from view during class time.
3. Food and beverages are not permitted inside the classroom.
4. Students are responsible with what transpired when they miss a class.
5. Disruptive behaviors will not be tolerated.

Specific
1. Students who arrived 15 minutes late will be recorded as late. Three consecutive late will
be considered as one absent. Likewise, 30 minutes late will be considered as absent.
2. Students caught cutting classes will be considered absent. Quizzes and exams taken that
day will also be disregarded.
3. Tablets and laptop computers will only be allowed during case presentations if there is
any.
4. Talking with classmate during quizzes and examinations will be considered as a form of
cheating.
5. Valid reasons for excused absences are limited to the funeral or death of immediate
family and medical reasons with proof of medical certificate.

I. CONSULTATION HOURS
FRI- 5:00PM- 7:00PM

Prepared by: PAUL TJ C. COLLANTES, CPA , MM

Reviewed by: MS. KRYSTA LY RIVERA, CPA

Recommending Approval by: MR. ROGER V. IDOS, DBA (CAR)

Approved by: DR. DARWIN P. PAGUIO

Acknowledgement and Conforme: (Students)