BM1909

Course Syllabus
STI VISION: STI INSTITUTIONAL OUTCOMES:
To be the leader in innovative and relevant education that nurtures
individuals to become competent and responsible members of Character (IO1): An STIer is a person of character. An STIer takes responsibility for his/her actions, treats people with
society respect, and lives with integrity.

STI MISSION: Critical thinker (IO2): An STIer is a critical thinker. An STIer challenges and analyses all information through sound
We are an institution committed to provide knowledge through the questioning and is unafraid to push for creative ideas.
development and delivery of superior learning systems.
Communicator (IO3): An STIer communicates to understand and be understood. An STIer discerns the value of
We strive to provide optimum value to all our stakeholders - our information read or heard and effectively expresses his/her own emotions when sharing information, may it be
students, our faculty members, our employees, our partners, our spoken or written.
shareholders, and our community.
Change-adept (IO4): An STIer is change-adept. An STIer can adjust, adapt, and reinvent continuously to changing
We will pursue this mission with utmost integrity, dedication, circumstances. An STIer believes in letting go of the old and embracing the new to achieve his/her fullest potential.
transparency, and creativity.
SERIAL NUMBER: BM1909 COURSE TITLE: AUDITING AND ASSURANCE PRINCIPLES CREDIT: 3 units (3 hours lecture per week)
COURSE DESCRIPTION: This course introduces demand and supply of profession’s flagship service, financial statement audits, and the nature of the value-added
assurance services, which decision-makers demand in the information age. Topics include the nature of accounting profession, auditing and
assurance fundamentals, consulting versus assurance services, types of attestation services, relationship of accounting and auditing, auditing
standards, the framework of financial statements auditing. It also includes risk-based approach as audit methodology, audit evaluation and
planning, assessing internal controls and test of control, reports on assurance services, attestation services, and the financial statement audits,
basic professional values, and the Code of Ethics for Professionals.
PREREQUISITE: None
COURSE OUTCOMES: After successful completion of this course, the student should be able to:
CO1. Assess the conceptual foundation of auditing and other assurance services; (BAPO4-PI16)
CO2. Apply the Philippine Standards on Auditing through simulations using case studies; and (BAPO1-PI3; BAPO1-PI7; BAPO4-PI16)
CO3. Recommend solutions to the problems involving organizational, legal, regulatory, and ethical requirements in the professional practice
of accountancy in the Philippines. (BAPO5-PI17)
MANDATED BOOK: None
REFERENCES: 1. Frias, S. (2020). Textbook in auditing theory (Auditing and Assurance Principles). Litera Trading.
2. Cabrera. (2020). Auditing and Assurance Concepts and Application. EESM Bookstore
3. Cabrera (2020). Principles of Auditing and Assurance Services. EESM Bookstore
4. Salosagcol, J. (2021). Auditing theory: A guide in understanding the PSA. EESM Bookstore
5. Roque, G. (2018). Auditing Theory, CPA Reviewer. Litera Trading.
COURSE REQUIREMENTS: • Lecture Discussion
• Major Examinations
• Practical Examinations
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• Quizzes
• Assignments
• Performance Task
GRADING SYSTEM: The following percentage distribution shall be followed:
Prelims 20%
Midterms 20%
Pre-finals 20%
Finals 40%
100%

The following are the recommended periodical grade components for this course:

Performance Task (PT, SW/HW, Quizzes, eLMS) 50%

Major Examination 50%
100%
We’d be glad to hear from you. For questions or feedback on this course, feel free to email us through student.feedback@sti.edu
 BM1909

Course Outline
LEC Student Teaching and Learning
Learning Objectives (LO) Week TOPICS Slides I-Guide Assessment Tasks
Hours Handouts Activities
1 Explain the concept of 1 3 Overview of Auditing and Other 1-37 1-13 1-12 Discussion Recitation
assurance (CO1) Assurance Services
2 Define auditing (CO1) Assurance Engagements eLMS Activity Quiz
3 Characterize the types of Auditing
audit and the types of Types of Audits
auditors (CO1) Types of Auditors
4 Differentiate auditing from Auditing vs. Accounting
accounting (CO1) Other Related Services
5 Explain the other assurance
and non-assurance services
(CO1)
6 Apply the law governing the 2 3 The Philippine Accountancy Act of 1-39 1-11 1-9 Discussion Recitation
practice of accountancy in 2004 (Republic Act No. 9298)
the Philippines in real-life Objective and Scope eLMS Activity Quiz
cases (CO3) Professional Regulatory Board of
Accountancy. Performance Task
Examination, Registration and
Licensure
Practice of Accountancy
Penal and Final Provisions
7 Explain the relevant ethical 3 3 The Code of Ethics for Professional 1-44 1-11 1-19 Discussion Recitation
requirements for Accountants
professional accountants General Application eLMS Activity Quiz
(CO3) Professional accountants in Public
Practice Homework
Professional Accountants in Business
8 Analyze the importance of The Professional Standards 1-22 1-11 1-7 Discussion Recitation
professional standards in the 4 3 Generally Accepted Auditing eLMS Activity Quiz
audit process (CO2) Standards (GAAS) Digital Learning
Philippine Standards on Auditing
(PSA)
Quality Control System
5 1 PRELIMINARY EXAMINATION Periodical Examination Pen-and-Paper Test
9 Determine the responsibility 6 3 The Auditor’s Responsibility 1-25 1-8 1-6 Discussion Recitation
of the management and of Error
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LEC Student Teaching and Learning

Learning Objectives (LO) Week TOPICS Slides I-Guide Assessment Tasks
Hours Handouts Activities
the auditor to consider Fraud eLMS Activity Quiz
fraud, error, and Noncompliance with Laws and
noncompliance with Regulations
applicable laws and
regulations (CO1, CO2, CO3)
10 Discuss the audit process 7 3 Accepting an Engagement 1-18 1-9 1-4 Discussion Recitation
(CO1, CO2) Overview of the Audit Process
11 Assess whether an Accepting an Engagement eLMS Activity Quiz
engagement should be
accepted or not (CO2) Performance Task Preparation of
engagement letter
12 Analyze the significance of 8 3 Audit Planning 1-31 1-12 1-8 Discussion Recitation
planning the audit in Understanding the Client’s Business
reducing audit risks (CO1, and Industry eLMS Activity Quiz
CO2) Planning an Audit of Financial
Statements Performance Task Preparation of audit
Materiality planning document
Evaluation of Misstatements
Identified During the Audit
Audit Risk Model
Audit Plan and Audit Program
Analytical Procedures
13 Explain the purpose and 9 3 Consideration of Internal Control 1-19 1-10 1-7 Discussion Recitation
nature of internal control Nature of Internal Control
(CO2, CO3) Components of Internal Control eLMS Activity Quiz

14 Identify the components of Communication of Internal Control

internal control (CO2, CO3) Weaknesses Performance Task Internal Control
15 Assess the importance of The Auditor’s Responses to Questionnaire
communicating reportable Assessed Risks Digital Learning
conditions to management
(CO2, CO3)
10 1 MIDTERM EXAMINATION Periodical Examination Pen-and-Paper Test
16 Analyze the procedures 11 3 Performing Substantive Tests 1-29 1-10 1-11 Discussion Recitation
when performing Substantive Testing
substantive tests (CO2) Audit Evidence eLMS Activity Quiz
17 Explain the importance of Audit Documentation
audit evidence (CO2) Related Parties Performance Task Substantive Testing
 BM1909

LEC Student Teaching and Learning

Learning Objectives (LO) Week TOPICS Slides I-Guide Assessment Tasks
Hours Handouts Activities
18 Determine the need of using Using the Work of Internal Auditors
the work of others (CO2) Using the Work of an Auditor’s
Expert
Auditing Accounting Estimates
19 Explain the nature and 12 3 Audit Sampling 1-21 1-9 1-16 Discussion Recitation
purpose of audit sampling Audit Sampling Plan
(CO2) Attributes Sampling eLMS Activity Quiz
20 Use the different sampling Variables Sampling
methods for tests of controls Performance Task Audit Sampling
and substantive testing
(CO2)
21 Identify the various issues 13 3 Completing the Audit 1-21 1-12 1-8 Discussion Recitation
that the auditor considers in Related Party Transactions Quiz
completing the audit (CO2) Subsequent Events Performance Task Review of
Litigations, Claims, and Assessment management
Management Representation Letter eLMS Activity representation
Going Concern letter
Digital Learning
14 1 PRE-FINAL EXAMINATION Periodical Examination Pen-and-Paper Test
22 Identify the type of audit 15 3 Audit Reports on Financial 1-19 1-10 1-6 Discussion Recitation
reports that the auditor may Statements
issue (CO2)
23 Create audit reports (CO1, Forming an Opinion eLMS Activity Quiz
CO2, CO3) The Unmodified Report
Modification of Report Performance Task Audit report
Comparative Information preparation
The Auditor’s Responsibilities
Relating to Other Information
24 Discuss the characteristics of 16 3 Auditing in Computer Information 1-20 1-8 1-6 Discussion Recitation
CIS (CO1) Systems (CIS) Environment
25 Analyze the impact of Risk Assessments and Internal
computers in accounting Control in CIS Environment eLMS Activity Quiz
systems (CO1) Computerized Audit Tools and
26 Distinguish the different Techniques for Tests of Controls
computer assisted auditing
techniques (CO2)
 BM1909

LEC Student Teaching and Learning

Learning Objectives (LO) Week TOPICS Slides I-Guide Assessment Tasks
Hours Handouts Activities
27 Explain the different 17 3 Reports on Other Assurance and 1-21 1-12 1-8 Discussion Recitation
assurance engagements Related Services
other than audit (CO1) Engagements to Review Financial
28 Discuss non-assurance Statements eLMS Activity Quiz
engagements (CO1) Compilation Engagements
Engagement on Agreed-upon Digital Learning
Procedures
Examination of Prospective Financial
Information
18 1 FINAL EXAMINATION Periodical Examination Pen-and-Paper Test

PREPARED BY: VERIFIED BY: REVIEWED BY: APPROVED BY:

John Emmanuel D. Rivera Alyanna R. Tobias, Ed.M., LPT Kristine E. Lu, M.Ed. EL, LPT Fernando T. Dantes, III, MIT