FAR EASTERN UNIVERSITY

Vision
Guided by the core values of Fortitude, Excellence and Uprightness, Far Eastern University aims to be a university of choice in Asia

Mission
Committed to the highest intellectual, moral and cultural standards, it strives to produce principled and competent graduates. It nurtures a service-oriented
and environment conscious community which seeks to contribute to the advancement of the global society.

Quality Policy
Far Eastern University is committed to providing quality educational services. Each person is expected to do the job right the first time with the intention of
consistently satisfying the requirement of our students, other members of FEU community, and external parties. Under any given circumstances we shall
adhere to all the requirements and standards for continuous improvement and effectiveness of the quality management systems.

INSTITUTE OF ACCOUNTS, BUSINESS AND FINANCE

Vision
Far Eastern University – Institute of Accounts, Business and Finance (IABF) envisions itself to be the preferred business school in Asia.

Mission
The Institute of Accounts, Business and Finance is committed to produce principled and competent business graduates, espousing Fortitude, Excellence and
Uprightness. IABF will promote community engaged, service-oriented individuals who will shape and build strong organization in the future.

DEPARTMENT OF ACCOUNTANCY

Vision
Guided by the core values (Fortitude, Excellence and Uprightness) of a true-blooded Tamaraw, the Accountancy Program of FEU– IABF envisions itself as a
Center of Excellence in Accountancy Education.

Mission
It commits to develop future responsible accounting professionals through holistic accountancy curriculum, extensive and innovative delivery of instruction,
competent and highly qualified faculty, state-of-the-art facilities, industry and community-based researches, practical-based student apprenticeship program
and extensive community.
Course Title: Governance, Business Ethics, Risk Management, and Internal Control
Course Code: ACT1110
Credits: Three (3) units
Prerequisite: None

Course Description:
This course is intended to build understanding of students on fundamental concepts of corporate governance, risk management process, and
internal control system. At the end of course, students are expected to be competent on these fundamental concepts in applying to actual
corporate setting and on how to evaluate and improve financial and operational processes of organization’s risk management, control, and
governance.

Program Expected Learning Outcomes (PELO):

A graduate of the BS Internal Auditing program is expected to achieve the following learning outcomes:
1. Resolve business issues and problems, with a global and strategic perspective using knowledge and technical proficiency in the areas of
internal auditing, financial accounting and reporting, cost accounting and management, management accounting and control, taxation,
law and accounting/auditing information systems with integrity, objectivity and competence;
2. Prepare financial statements and other-related reports in accordance with applicable accounting and auditing standards, taxation and
business laws.
3. Conduct internal auditing research through independent studies of relevant literature and appropriate use of internal auditing theory and
methodologies.
4. Develop a strategic business plan using the management concepts and principles holistically.
5. Employ technology as a business tool in capturing financial and non-financial information, generating reports and making decisions
6. Interpret the business environment through various financial and management analysis.
7. Evaluate accounting-related topics and contemporary issues through written inquiry and investigation.
8. Apply relevant auditing standards to financial statements audit for reliable communication of results to stakeholders.
9. Confidently maintain a commitment to good corporate citizenship, social responsibility and ethical practice in performing functions as an
internal auditor.
10. Prepare income tax returns and other business documents in compliance with regulatory requirements.
11. Apply knowledge and skills that will successfully respond to various types of assessments (including professional licensure and
certifications.
12. Demonstrate leadership and interpersonal skills through collaborative work.
13. Communicate effectively in a variety of domain including writing, speaking, listening and reading in the context of accounting and business.
14. Adapt to changing environment by responding positively to challenges.
15. Manifest the FEU core values – Fortitude, Excellence and Uprightness.
Course Expected Learning Outcomes (CELO):
Upon completion of the course, the students are expected to:
1. Build an understanding on The Three Lines of Defense Model and fundamental concepts of corporate governance, risk management
process, and internal control system
2. Uphold and interpret business ethics and compliance to laws, rules, and regulations
3. Recognize actual setting of organizational culture on overall control environment
4. Learn different roles and responsibilities to risk management, control, and governance processes
5. Learn different types of controls (i.e., primary and secondary controls, time-based classification controls)
6. Comprehend assessment of internal control's effectiveness, efficiency, and adequateness
7. Prepare results, including recommendations, on Heat Map, and Risk and Control matrix

Course Expected Learning Outcomes (CELO) Program Expected Learning Outcomes (PELO)
CELO 1 Build an understanding on The Three Lines of Defense Model and 1, 3, 9, 11
fundamental concepts of corporate governance, risk management process,
and internal control system
CELO 2 Uphold and interpret business ethics and compliance to laws, rules, and 1, 3, 9, 10, 11, 13, 14, 15
regulations
CELO 3 Recognize actual setting of organizational culture on overall control 1, 3, 9, 11
environment
CELO 4 Learn different roles and responsibilities to risk management, control, and 1, 3, 9, 11, 14
governance processes
CELO 5 Learn different types of controls (i.e., primary and secondary controls, time- 1, 3, 9, 11
based classification controls, manual and automated controls)
CELO 6 Comprehend assessment of internal control's effectiveness, efficiency, and 1, 3, 9, 11, 13, 15
adequateness
CELO 7 Prepare and present results, including recommendations, on Heat Map, and 1, 2, 3, 6, 9, 11, 12, 13, 15
Risk and Control Matrix
 Time Lesson / Topics Course Strategy / Methodology / Student Output Evaluation / Assessment
Frame- Expected Activities
Week Learning
Outcomes
1 to 2 Fundamental Concepts of Corporate CELO 1 • Lectures • Results of Case • Quiz
Governance CELO 2 • Assignments study and role play • Recitation
a) Explain and illustrate The Three CELO 3 • Case study • Passing mark on • Case study
Lines of Defense Model by the CELO 4 Discussion quizzes and
Institute of Internal Auditors (IIA) recitations
b) Explain the different definitions of
Corporate Governance
c) Explain and illustrate a standard
Corporate Governance Structure
d) Discuss the two components of
Governance (i.e., strategic
direction and oversight)
e) Discuss the principles and
practices of Governance, including
control environment, ethical
culture, and compliance to laws,
rules and regulations
f) Differentiate roles and
responsibilities to Governance
process
Fundamental Concepts of Business
Ethics
a) Explore conceptualizations of
business ethics from an
organizational perspective
b) Provide evidence that ethical
value systems support business
performance
c) Identify stakeholders’ roles in
business ethics
 Time Lesson / Topics Course Strategy / Methodology / Student Output Evaluation / Assessment
Frame- Expected Activities
Week Learning
Outcomes
d) Explore the role of corporate
governance in structuring ethics in
business
e) Define ethical issues in the context
of organizational ethics
f) Examine ethical issues as they
relate to the basic values of
honesty, fairness, and integrity
g) Delineate ethical issues in
business

3 to 4 Fundamental Concepts of Risk CELO 1 • Lectures • Results of Case • Quiz

Management and Internal Control CELO 4 • Assignments study and role play • Recitation
System • Case study • Passing mark on • Case study
a) Explain different definitions of Risk Discussion quizzes and
and Risk Management recitations
b) Discuss globally accepted
frameworks on risk management
internal control (i.e., COSO, ISO
31000, CoCo, COBIT)
c) Discuss the Risk Management
Process according to COSO
d) Explain the definition of Controls
and Internal Control
e) Differentiate roles and
responsibilities to Risk
Management and Internal Control
System

MIDTERM EXAM
 Time Lesson / Topics Course Strategy / Methodology / Student Output Evaluation / Assessment
Frame- Expected Activities
Week Learning
Outcomes
5 Control Process CELO 5 • Lectures • Results of Case • Quiz
a) Discuss the Control Process CELO 6 • Assignments study and role play • Recitation
b) Discuss and illustrate Primary and • Case study • Passing mark on • Case study
Secondary Controls according to Discussion quizzes and
COSO recitations
c) Discuss and illustrate Time-Based
Classification Controls according to
COSO
d) Discuss and illustrate Manual and
Automated Controls according to
COSO
6 Tools on Evaluating Controls CELO 5 • Lectures • Results of Case • Quiz
a) Explain and differentiate CELO 6 • Assignments study and role play • Recitation
effectiveness, efficiency, and CELO 7 • Case study • Passing mark on • Case study
adequacy Discussion quizzes and
a) Explain and illustrate Heat Map recitations
b) Explain and illustrate Risk and
Control Matrix

FINAL PRESENTATION EXAM

Submission of results, including
recommendations, on Heat Map, and
Risk and Control Matrix

INSTRUCTIONAL MATERIALS/ RESOURCES

1. Microsoft PowerPoint
2. CANVAS
3. Other Learning Management System (LMS) (e.g. Connect, Mindtap, etc.)
SUGGESTED READINGS AND REFERENCES
1. Internal Control – Integrated Framework, by COSO
2. 2020 CIA Review Course, by Gleim
3. Internal Control – Integrated Framework, by COSO
4. Position Paper “The Three Lines of Defense in Effective Risk Management and Control,” by The IIA
5. Business Ethics by Ferrel, 2019 Edition
6. Corporate Governance by Goergen, 2019 Edition

CLASSROOM POLICIES
It is the responsibility of the learner to come to each class prepared. He/she is also expected to take all examinations on the scheduled date.
He/she should read the assigned problems prior to class discussion. He/she is expected to attend each class and participate actively in the
discussions.

FEU ACADEMIC DISHONESTY

All Research, Accounting, Auditing, Law and Taxation students are expected to be academically honest. Cheating, lying, and other forms of immoral
and unethical behavior will not be tolerated. Any student found guilty of cheating in examinations or plagiarizing in submitted course requirements
will (at a minimum) receive a Failing Grade in the course/subject. Cheating and Plagiarism refer to the use of unauthorized books, notes, securing
help in a test, copying test, assignments, reports or term papers, collaborating without authority with another student during an examination or
in preparing academic work, signing another student’s name on an attendance sheet, representing the work of another person as one’s own; and
other activities manifesting the practice of scholastic dishonesty.

POLICY ON ABSENCES
The students are allowed only 20% of the total number of hours in a semester for absences. Hence, the allowed number of absences for a
student enrolled in a 3-unit subject or 6-unit subject is a maximum of six (6) absences during regular semester. Request for excused absences or
waiver of absences must be presented prior to occurrence of absence or immediately upon reporting back to class, whichever is applicable.
Special examinations will be given only in special cases, such as prolonged illness. It is the responsibility of the student to monitor his/her own
tardy incidents and absences that might accumulate leading to the grade of 5.00 or F. It is also his/her responsibility to consult with the
concerned faculty member, program head, Dean should his/her case be of special nature.
Note: Always refer to the Student Handbook for academic policies.

POLICY ON NON-SOLICITATION OF FUNDS

All official fees of the University are collected through the Cash Department. Students should not pay any additional fees such as those for
tickets, entrance fees, transportation fees, hand-outs, readings, quizzes or tests to any faculty or staff member of the University.
POLICY ON STUDENT DATA PRIVACY ACT
In compliance with the Act and for ensuring highest level of data security and confidentiality in the access of student’s personal
data/information, faculty members should not allow the student to check other students’ test papers, assignments, seat work, announce the
individual grades of the students before the class, disclose student information, student records and other “student-generated content” in any
media, and any other similar acts that will jeopardize the interest of an identified individual student.

COURSE REQUIREMENTS
Formative and Summative Assessments

GRADING SYSTEM
Computation of Periodic Grades

I. Computation of 1st Preliminary Grade: Midterm Grade (MG)

Formative Assessment (FA)
Class Participation (Homework, Practice Tests, Recitation, Pre-test) 20%
Quizzes 30
Summative Assessment (SA) - Major Departmental Exam 50
1st PRELIMINARY GRADE 100%

II. Computation of 2nd Preliminary Grade

Formative Assessment (FA)
Class Participation ( Homework, Practice Tests, Recitation, Pre-test ) 20%
Quizzes 30
Summative Assessment(SA) – Major Departmental Exam 50
2nd PRELIMINARY GRADE 100%
III. FINAL GRADE = 1st PG (50%) + 2nd PG (50%)
TRANSMUTATION OF FINAL GRADE (FG)
FINAL GRADE LETTER GRADE QUALITY POINT RANGE

92 – 100 A 4.0 3.80 - 4.0

85 – 91 B+ 3.5 3.30 – 3.79
78 – 84 B 3.0 2.80 – 3.29
71 – 77 C+ 2.5 2.30 – 2.79
64 – 70 C 2.0 1.80 – 2.29
57 – 63 D+ 1.5 1.30 – 1.79
50 – 58 D 1.0 1.0 – 1.29
F .99 and lower

IV. RETENTION GRADE -(QUALITY POINT AVERAGE (QPA) CUMULATIVE PER YEAR LEVEL

YEAR LEVEL FAR EASTERN BACHELOR OF SCIENCE BACHELOR OF SCIENCE IN

UNIVERSITY IN ACCOUNTANCY INTERNAL AUDITING
(BSA) (BSIA)
First Year 1.2 1.2 1.2
Second Year 1.5 1.6 1.5

Third Year 1.8 2.0 1.8

Fourth Year 2.0 2.4 2.0

DATE OF EFFECTIVITY: June 2020

Prepared By: Recommended by: Approved By:

JOHN KEBYN M. VILLARINO RAMIL N. BALDRES EARL JOSEPH BORGOÑA

Instructor – Internal Auditing Program Head – Accountancy & OIC-Dean - IABF
Internal Auditing