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ACCT 320 Auditing

Fall 2014
(TR: 11:30 am - 12:45 pm)

Instructor: Lei Gao Phone (O): 585-245-5986
Office: South Hall 115C Email: [email protected]
Office Hours: Tuesday: 4:00p 5:00p; Wednesday: 2:00p 4:00p; Thursday: 4:00p 5:00p, and by
appointment


COURSE PREREQUISITES AND REQUIRED MATERIAL

Course Prerequisites
ACCT 302, ECON 202 & Senior Status

Required Material
Arens, Alvin A., Randal J. Elder and Mark S. Beasley. Auditing and Assurance Services - An Integrated
Approach. 15th Edition. Pearson Education, Inc. ISBN: 978-0-13-312563-4

OVERVIEW OF COURSE

Course Objectives: The basic objectives of the course are to provide you with an understanding of:
1. the auditing/assurance services environment
2. the impact of current issues on the auditing profession
3. basic auditing concepts
4. the accumulation and interpretation of audit evidence and the documentation of results
5. the application of professional standards to situations encountered by accountants
6. the process involved in completing the audit work and issuing the audit report

Relationship to School of Business Educational Philosophy and Course Sequence
This is an introductory course in auditing for students with limited previous exposure to auditing. It
requires students to have sound accounting knowledge and provides students the knowledge of
fundamental auditing concepts and their application to real-world problems.
This course emphasizes the importance of ethics in the world of business and in particular for the audit
profession. Ethical issues will be discussed throughout the course and will be illustrated by real cases.
Professional skepticism will be one of the major topics in the course. Students who successfully
complete the course will develop the ability to think critically about audit issues.
This course requires students to apply both logical and quantitative skills when making judgment under
uncertainties. In the course, students will learn how to look for and use both quantitative and qualitative
information, evaluate them, and make conclusions. They must communicate their judgment effectively
both orally and in writing.

Nature of the Course
The course will be conducted using a mixture of lecture/problem solving and cooperative/team learning which
strongly encourages student participation. Students are expected to study the chapter readings and other
assigned materials in depth prior to each class meeting, and to solve any problems indicated on the syllabus.
Key problems or handouts will be worked in class as time permits. Class notes, grades, instructions, etc. will be
available on myCourses or distributed during class. You should regularly check the course page on myCourses
and attend all class meetings to be certain that you have access to all communications.

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Evaluation
You will be held to standards similar to those found in the public accounting workplace. I expect you to (1)
come prepared to class by doing the reading and any other pre-assigned activities in advance, (2) complete your
assignments on time with an open willingness to discuss and learn, and (3) exhibit professionalism in your work
and conduct, and comply with the SUNY Geneseo Student Codes of Conduct. Link to the student code:
http://www.geneseo.edu/handbook/policies_procedures#studentcodeofconduct

To measure the extent to which you have attained the objectives of the course, the following activities will be
graded.

Descriptions Points Percentage
Exam 1 100 22%
Exam 2 100 22%
Final Exam 120 27%
Written Textbook Problems (Top 11 of 13) 22 5%
Group Project 1 20 4%
Group Project 2 with Presentation 40 9%
In-class Group Activities 30 7%
Class Participation 18 4%
TOTAL 450 100%


Grading Ranges: Letter grades will be assigned based on the instructor's overall evaluation of your
performance. A major but not sole input to this decision process will be the points noted above. The
approximate points required for different grade levels are:

ACCT 320
Grade Range of Points
A 405-450
A- 396-404
B+ 387-395
B 360-386
B- 351-359
C+ 342-350
C 315-341
C- 306-314
D 270-305
E <270

Exams
Exams 1 and 2 will be given during scheduled class times. Final exam will be given according to the attached
class schedule as well. The examinations will consist of multiple-choice, problem solving, and essay questions.
Students are expected to be in attendance for all examinations. If a student has an acceptable excuse for missing
an examination (death in the family, provable illness, and etc.), the student is responsible for informing the
instructor and obtaining permission to miss the examination no less than two weeks before the examination
takes place. Failure to obtain permission is an unexcused absence and a grade of zero will be assigned for the
student on that examination.

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Written Textbook Problems
Problems identified as "written" in the class schedule of this syllabus are to be prepared in good form (= using
word processing or spreadsheet software if possible; at a minimum, they must be neat and easy to read) and
turned in at the beginning of the class on the due date shown. Each of these problems will be graded on a 2-
point scale. The written-problem assignments will be graded based on completeness rather than on accuracy.
Solutions to homework problems will be posted on myCourses after the due date. You are responsible for
checking the accuracy of your homework on your own. You have to actually attend and stay through the class in
order to get the homework grade. Please do not let other students turn in your homework or leave in the middle
of a class without prior approval. Early or late submissions are unacceptable without prior approval.
Group Projects
Two group projects will be completed in three or four-person teams outside of the class. All assignments
require a substantial amount of writing, and will be graded primarily on substantive content, support for your
position, and your communication skills. Detailed instructions will be distributed to you separately, as needed.
Due dates can be found in the class schedule of this syllabus. Any writing assignment handed in later than class
time on the due date will lose 10% of the grade for each day it is late.
Auditing professionals are frequently required to make presentations to groups to communicate audit results,
convey technical information, testify in from of policy-making authorities, etc. As such, each team will make a
presentation based on the second project in class, and will then field questions from the class. The basis for the
grading will be your creativity, persuasiveness of your presentation, and your knowledge of the subject matter.
In-Class Group Activities
About seven to ten unannounced in-class group activities will be given during the semester. It could be a couple
of multiple choice questions or exercises completed as a group. Only those students who actually attended the
class would obtain a score for the group activity.
Class Participation
Research has shown that students learn and retain more if they participate in the learning process. I encourage
your participation by giving you credit for it. Class participation generally refers to your having something to
say or contribute. Sometimes you will be called upon to participate. Other times you will be caught up in the
thrill of the moment and volunteer. The grade of your class participation will be assigned based on the
instructor's overall evaluation of your participation in class. Three major but not sole input to this decision
process will be: attendance, asking or answering questions, and participation in activities and group discussions
in class. It is very important that you participate during class!
Academic Dishonesty
Academic honesty is fundamental to the activities and principles of a university. Any effort to gain an
advantage not given to all students is dishonest whether or not the effort is successful. Examples of academic
dishonesty include handing in anothers work or part of anothers work as your own; not participating equally in
team activities; using notes, study aids or anothers answers for an examination; fabrication; falsification;
plagiarism; leaving unprotected files on computers; and helping other students commit academically dishonest
acts. I regard academic dishonesty as an extremely serious matter that will result in serious consequences,
including, but not limited to, receiving a failing grade for the course.

Students With Disabilities
SUNY Geneseo will make reasonable accommodations for persons with documented physical, emotional or
learning disabilities. Students should consult with the Director in the Office of Disability Services (Tabitha
Buggie-Hunt, 105D Erwin, [email protected]) and their individual faculty regarding any needed
accommodations as early as possible in the semester.



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TENTATIVE CLASS SCHEDULE - SUBJECT TO CHANGE!
Homework assignments are due on the day they are listed. In the upper right hand corner of the first sheet,
type the following: Your name and Student ID.
You are responsible for all material listed, whether or not it is covered in class. Should you miss a class
(what?!), you are responsible for learning of any schedule changes.

Date Class
#
Topic Readings Due Homework/Due Dates

U 08-26 1 Introduction
R 08-28 2
Audit & Assurance Services
Chapter 1
U 09-02 3 The CPA Profession Chapter 2 Chap. 1: Prob. 14, 15, 17(a), 21
R 09-04 4 Professional Ethics Chapter 4 Chap. 2: Prob. 16, 20, 21 Written
U 09-09 5 - continued Chapter 4
R 09-11 6 Audit Reports Chapter 3 Chap. 4: Prob. 18, 19, 24, 25
Written
U 09-16 7 - continued Chapter 3
R 09-18 8 Audit Objectives Chapter 6 Chap. 3: Prob. 23, 24, 25, 28, 29
Written, 31
U 09-23 9 - continued
Audit Evidence
Chapter 6
Chapter 7
Group Project 1
R 09-25 10 - continued Chapter 7 Chap. 6: Prob. 20, 21, 22, 25, 28, 29
(b&c), 31 Written
U 09-30 11 Audit Planning & Analytical
Procedures
Chapter 8

Chap. 7: Prob. 25, 28, 33, 34
Written
R 10-02 12 EXAM 1
U 10-07
13
- continued
Chapter 8

R 10-09 14 - continued
Materiality & Risk
Chapter 8
Chapter 9
Chap. 8: Prob. 26, 27, 34, 35, 36
Written
U 10-14
FALL BREAK
R 10-16 15 - continued

Chapter 9


U 10-21 16 Internal Control Evaluation
& Risk Assessment
Chapter 10 Chap. 9: Prob. 23, 24, 25, 27, 32
Written, 34, 35
R 10-23 17 - continued Chapter 10
U 10-28 18 - continued Chapter 10 Chap. 10: Prob. 30, 31, 32, 35 (b&d)
(See Chap. 20 & Table 20-
2 for help), 39(2&3)
Written

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Date Class
#
Topic Reading Due Homework/Due Dates

R 10-30 19 Audit of the Sales Cycle Chapter 14


U 11-04 20 Audit of Accounts
Receivable
Chapter 16
Chap. 14: Prob. 21, 23, 24 -
Written, 26, 27, 28
R 11-06 21 EXAM 2
U 11-11 22 - continued

Chapter 16


R 11-13
23 Audit Sampling Chapter 15
Chap. 16: Prob. 20, 21, 22, 28
Written, 31
U 11-18 24 Audit of the Inventory &
Warehousing Cycle
Chapter 21
R 11-20 25
- continued
Fraud Auditing
Chapter 21
Chapter 11
Chap. 15: Prob. 22, 23(b, c&d), 28
Written, 30 (a, b, c&d)
U 11-25 26
- continued
Completing the Audit
Chapter 11
Chapter 24
Chap. 21: Prob. 17, 19, 30Written,
33
R 11-27
THANKSGIVING
U 12-02 27
- continued
Group Presentations
Chapter 24
Group Project 2 (ALL GROUPS)
Chap. 11: Prob. 20, 21, 23, 29, 31,
33
R 12-04 28
Group Presentations

Chap. 24: Prob. 24, 26, 28Written

R 12-11
FINAL EXAM 12:00-2:00pm