Course AIM 4334-5U1 Auditing

Professor William Riggs, CPA, MS, MBA, MSA

Term Summer 2010
Meets Thursday 6:00-10:00PM pm in SOM 1.110

Professor’s Contact Information

Office Phone 214 378-5400 (# to call for a timely answer)
Office Phone-UT-D 972 883-5903
Office Location SOM 4.228
Email Address riggs@accounting.net
Office Hours Thursday 4:30 – 5:45 PM

General Course Information

Required Auditing & Assurance Services, Louwers, 4th Edition, McGraw-Hill ISBN # 978-0-07-813664-1
Texts & www.mhhe.com/louwers4e
Materials

Resources The textbook for this course provides a wealth of material. However, the universe of auditing
Information is much greater than what you will find in the text. Much of it is available in the
Online Learning Center (http://highered.mcgraw-
hill.com/sites/0073526908/student_view0/index.html). The Online Learning Center offers chapter
by chapter quizzes, flashcards, and other tools valuable to your understanding of auditing.

On Elearning I have posted power point presentations for each chapter available for your
use. I have also posted solutions for the exercises for each chapter so that you can check the
correctness of your work and practice answering questions.

Course AIM 4334 Auditing is a challenging and difficult course that can vastly add to your knowledge.
Description To be successful in this course, you must devote adequate preparation time. The course text
chapter reading assignments and homework problems are indicated on the schedule.
AIM 4334 has a value of about 96 points at the CPA exam.

If you are having difficulty with the topics presented, please see me at the earliest opportunity.
Chapter reading assignments should be completed in a timely manner.
The assignment schedule may be modified during the semester if necessary.

All efforts will be made to cover each chapter in a detailed manner. Because of the quantity of the
material to be covered, an in depth study of each chapter cannot be realistically achieved.
It is therefore the responsibility of each student to study any portions not covered in class.

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Learning Basic concepts, standards, procedures, and practices of auditing are presented.
Outcomes Topics include generally accepted auditing standards, the changing role of the independent auditor
in society, professional conduct and ethics, the auditor’s reporting responsibilities, risk assessment,
internal control, fraud, evidential matter, and auditing in the global economy. The course will serve as
a base for the ever interesting opportunities in Forensic Accounting and Fraud Examination areas.

To use critical thinking

To understand and appreciate the ethical, legal and business issues of the public accounting
and auditing profession

To recognize that auditing and accounting are not limited by national boundaries and that
differences do exist.

The current status of international auditing standards.

To enjoy the course.

Class Required at all classes. Written attendance will be taken. Due to the summer travelling
Attendance schedule, if you must miss a class, please make sure you stay in touch with a classmate to
help with what you missed and of course come to the office for personal assistance.

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 Assignments & Academic Calendar Summer 2010
Chapters and timelines are subject to change at the discretion of the Professor.

Month Day Subject Matter Suggested Homework

(not graded)
May 27 Introduction of the course Key Term for the chapters
Chapter 1: Auditing & Assurance Chapter 1-23-45, 1-47

June 3 Chapter 2: Professional Standards Key Term for the chapters

Chapter 3: Management Fraud and Audit Risk
Chapter 2-28-45, 2-56
Chapter 3-20-44, 3-47
Module C due by 6-9
10 Module C: CPA Liability (partial) Key Term for the chapters
Chapter 4: Engagement Planning Chapter 4-26-46, 4-50, 4-56
Chapter 5: Risk Assessment Internal Control Chapter 5-39-62, 5-65, 5-68

17 Stop and Review

24 Exam 1: Chapters 1-5 and Module C---Please bring SCANTRON Form 882-E
Module H due by 6-30
July 1 Module H: Information Systems Auditing (Partial) Key Term for the chapters
Chapter 6: Fraud and Audit of Cash
Chapter 6-24-42, 6-53
Chapter7: Revenue and Collections Chapter 7-29-56, 7-60,& 61

8 Chapter 8: Revenue and Collection Cycle Key Term for the chapters
Chapter 9: Production Cycle
Chapter 8-23-38, 8-40
Chapter 9-21-41, 9-43 & 46

15 Chapter 10: Investment Cycle Key Term for the chapters

Chapter 11: Completing the Audit Chapter 10-22-46, 10-51
Chapter 11-27-47, 11-52,55
Module B due by 7-21
22 Chapter 12: Reports on Audited Financial Statements Key Term for the chapters
Module A: Other Public Services --Assurance, Attestation Chapter 12-26-37-12-44
Module B: Professional Ethics (Partial) Module A 15-34
Modules F and G due by 7-28
29 Modules E, F & G: Audit Sampling (Partial) Key Term for the chapters
Module C-29-60
Module E-25-50

August 5 Exam 2: Chapters 6-12 and Modules A-B & F-H --Please bring SCANTRON Form 882-E

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Course Policies Summer 2010
Grading A = 540, B = 480, C = 420, F < 419
Criteria
Exam 1 200
Exam 2 200
Module Summary B, C, F, G, and H (40 points each) 200
Total points from requirements 600

Examinations There will be two examinations in this course. The format is a combination of
multiple choices, matching questions. You will have the entire class time to
complete each examination.

To receive credit, the module summary (two pages are ideal for each module—12
font) must be submitted through eLearning by midnight of the due date.
Chapter The summary should highlight the major learning objectives of each module.
Summary
Due dates: Listed on the schedule. Late submission will be accepted but no points
will be given.
Make-up No make-up examinations
Exams
ELearning No matter what your experience with ELearning is, UTD’s Information Resources
department has a wonderful site. This course will use a web course tool called
eLearning. Students will use their UTD NetID account to login to the course at:
UTD Galaxy: http://galaxy.utdallas.edu or at http://www.utdallas.edu/elearninghelp

UTD provides eLearning technical support 24 hours a day and 7 days a week. The
improved services include a toll free telephone number for immediate assistance (1-
866-588-3192), email request service, and an online chat service. The UTD user
community can also access the support resources such as self-help resources and a
Knowledge Base. Please use this link to access the UTD eLearning Support Center:
http://www.utdallas.edu/elearninghelp.

The site includes short video tutorials for nearly all functions in ELearning, as well
as solutions to many issues. The website can be found at
http://www.utdallas.edu/elearninghelp
Certain features such as the discussion boards have been disabled in this course.
Only e-mail is available.
Server The university is committed to providing a reliable online course system to all
Unavailability users. However, in the event of any unexpected server outage or any unusual
or Other technical difficulty which prevents students from completing a time sensitive
Technical assessment activity, the instructor will extend the time windows and provide an
Difficulties appropriate accommodation based on the situation. Students should report any
problems to the instructor and also email somelearning@utdallas.edu. The
instructor and the SOM eLearning Team will respond to student’s request at the
earliest possible time during the next working day.
Withdrawal The administration of this institution has set deadlines for withdrawal of any college-
from Class level courses. These dates and times are published in that semester's course catalog.
Administration procedures must be followed. It is the student's responsibility to handle
withdrawal requirements from any class. In other words, I cannot drop or withdraw
any student. You must do the proper paperwork to ensure that you will not receive a
final grade of "F" in a course if you choose not to attend the class once you are enrolled.
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 Last day to drop the course with a "W": Monday July 19, 2010

Student The University of Texas System and The University of Texas at Dallas have rules and
Conduct and regulations for the orderly and efficient conduct of their business. It is the responsibility of
Discipline each student and each student organization to be knowledgeable about the rules and
regulations which govern student conduct and activities. General information on student
conduct and discipline is contained in the UTD publication, A to Z Guide, which is
provided to all registered students each academic year.

The University of Texas at Dallas administers student discipline within the procedures of
recognized and established due process. Procedures are defined and described in the Rules
and Regulations, Board of Regents, The University of Texas System, Part 1, Chapter VI,
Section 3, and in Title V, Rules on Student Services and Activities of the University’s
Handbook of Operating Procedures.

Copies of these rules and regulations are available to students in the Office of the Dean of
Students, where staff members are available to assist students in interpreting the rules and
regulations (SU 1.602, 972/883-6391).

A student at the university neither loses the rights nor escapes the responsibilities of
citizenship. He or she is expected to obey federal, state, and local laws as well as the
Regents’ Rules, university regulations, and administrative rules. Students are subject to
discipline for violating the standards of conduct whether such conduct takes place on or off
campus, or whether civil or criminal penalties are also imposed for such conduct.

Academic The faculty expects from its students a high level of responsibility and academic honesty.
Integrity Because the value of an academic degree depends upon the absolute integrity of the work done
by the student for that degree, it is imperative that a student demonstrate a high standard of
individual honor in his or her scholastic work.

Scholastic dishonesty includes, but is not limited to, statements, acts or omissions related to
applications for enrollment or the award of a degree, and/or the submission as one’s own work
or material that is not one’s own. As a general rule, scholastic dishonesty involves one of the
following acts: cheating, plagiarism, collusion and/or falsifying academic records.
Students suspected of academic dishonesty are subject to disciplinary proceedings.
Plagiarism, especially from the web, from portions of papers for other classes, and from any
other source is unacceptable and will be dealt with under the university’s policy on plagiarism
(see general catalog for details). This course will use the resources of turnitin.com, which
searches the web for possible plagiarism and is over 90% effective.

Email Use The University of Texas at Dallas recognizes the value and efficiency of communication
between faculty/staff and students through electronic mail. At the same time, email raises
some issues concerning security and the identity of each individual in an email exchange.
The university encourages all official student email correspondence be sent only to a student’s
U.T. Dallas email address and that faculty and staff consider email from students official only
if it originates from a UTD student account. This allows the university to maintain a high
degree of confidence in the identity of all individual corresponding and the security of the
transmitted information. UTD furnishes each student with a free email account that is to be
used in all communication with university personnel. The Department of Information
Resources at U.T. Dallas provides a method for students to have their U.T. Dallas mail
forwarded to other accounts.
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Student Procedures for student grievances are found in Title V, Rules on Student Services and
Grievance Activities, of the university’s Handbook of Operating Procedures.
Procedures
In attempting to resolve any student grievance regarding grades, evaluations, or other
fulfillments of academic responsibility, it is the obligation of the student first to make a serious
effort to resolve the matter with the instructor, supervisor, administrator, or committee with
whom the grievance originates (hereafter called “the respondent”).
Individual faculty members retain primary responsibility for assigning grades and
evaluations. If the matter cannot be resolved at that level, the grievance must be
submitted in writing to the respondent with a copy of the respondent’s School Dean. If
the matter is not resolved by the written response provided by the respondent, the student
may submit a written appeal to the School Dean. If the grievance is not resolved by the
School Dean’s decision, the student may make a written appeal to the Dean of Graduate
or Undergraduate Education, and the deal will appoint and convene an Academic Appeals
Panel. The decision of the Academic Appeals Panel is final. The results of the academic
appeals process will be distributed to all involved parties.
Copies of these rules and regulations are available to students in the Office of the Dean of
Students, where staff members are available to assist students in interpreting the rules and
regulations.
Incomplete As per university policy, incomplete grades will be granted only for work unavoidably
Grades missed at the semester’s end and only if 70% of the course work has been completed. An
incomplete grade must be resolved within eight (8) weeks from the first day of the
subsequent long semester. If the required work to complete the course and to remove the
incomplete grade is not submitted by the specified deadline, the incomplete grade is
changed automatically to a grade of F.
You must do the proper paperwork to ensure that you will not receive a final grade
of "F" in the course.

Disability The goal of Disability Services is to provide students with disabilities educational
Services opportunities equal to those of their non-disabled peers. Disability Services is located in
room 1.610 in the Student Union. Office hours are Monday and Thursday, 8:30 a.m. to 6:30
p.m.; Tuesday and Wednesday, 8:30 a.m. to 7:30 p.m.; Friday, 8:30 a.m. to 5:30 p.m.

The contact information for the Office of Disability Services is:

The University of Texas at Dallas, SU 22

PO Box 830688
Richardson, Texas 75083-0688
(972) 883-2098 (voice or TTY)

Religious The University of Texas at Dallas will excuse a student from class or other required activities
Holy Days for the travel to and observation of a religious holy day for a religion whose places of worship
are exempt from property tax under Section 11.20, Tax Code, Texas Code Annotated.
The student is encouraged to notify the instructor or activity sponsor as soon as possible
regarding the absence, preferably in advance of the assignment. The student, so excused, will
be allowed to take the exam or complete the assignment within a reasonable time after the
absence: a period equal to the length of the absence, up to a maximum of one week. A student
who notifies the instructor and completes any missed exam or assignment may not be
penalized for the absence. A student who fails to complete the exam or assignment within the
prescribed period may receive a failing grade for that exam or assignment.

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 If a student or an instructor disagrees about the nature of the absence [i.e., for the purpose of
observing a religious holy day] or if there is similar disagreement about whether the student has
been given a reasonable time to complete any missed assignments or examinations, either the
student or the instructor may request a ruling from the chief executive officer of the institution,
or his or her designee. The chief executive officer or designee must take into account the
legislative intent of TEC 51.911(b), and the student and instructor will abide by the decision of
the chief executive officer or designee.

Off-Campus Off-campus, out-of-state, and foreign instruction and activities are subject to state law and
Instruction University policies and procedures regarding travel and risk-related activities. Information
and Course regarding these rules and regulations may be found at
Activities http://www.utdallas.edu/BusinessAffairs/Travel_Risk_Activities.htm. Additional information
is available from the office of the school dean.

Strategies To further ensure your success, I suggest you follow these strategies:
For Success: There is no special secret to succeeding in this course. Most students who are
committed to the “5 Ps” have little trouble:
Preparation. Do the assigned readings so that the class explanation will mean more.
Apply your knowledge to problem solving, the more you solve, the better you learn.
Preparation is success.
Presence. If you are not present, then you cannot learn and you cannot add your
expertise to the group explanation. Exchange contact data with a classmate so that if
you miss a class you stay informed.
Promptness.
Participation. Each student’s learning is best facilitated by regular participation. Each
student is responsible for sharing his or her understanding and judgment with the class
to advance the group’s collective skills and knowledge.
Practice. Do enough exercises to turn the “theory” into “practical skills"
Re-do homework, to become proficient. Copying solutions ≠ working problems.
Analyze and learn from your mistakes. Failure is a great way to learn.
“Read the English!” If you understand the question you will solve the problem.

Method of The theory and philosophy of accounting for Auditing will be presented through lectures,
Presentation: handouts and overhead transparencies as needed. The student’s participation is essential.
Each class will have assigned topics and chapters readings. Begin each class with a lecture
designed to provide structure to the material and to clarify the learning Objectives
surrounding the topic. It is assumed that you have thoroughly read and worked through the
examples prior to the class sessions. The knowledge and skills gained are cumulative. The
student is expected to utilize all previously learned material in any particular analysis.

Course Objectives:
Learning Goals/Objectives
“What is it that you want your students
to get from this class?”
1) Distinguish ethical and unethical behavior in
personal and professional contexts as it relates
to audit. Resolve ethical dilemmas using an
ethical framework, and explain the importance
of ethical conduct for the accounting profession
as a whole solely charged with the public
Learning Outcome/Assessment
“How will I assess the stated learning objective?”
1) Test questions that require the students to compare
and contrast ethical and unethical behaviors.
2) Test their understanding through world problems so that
they can master the purpose and content of the AICPA
Code of Professional Conduct.
3) Test their understanding, interpretation, requirements

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interest.
2) Students will understand compare and
contrast the objectives, differences and
similarities between internal auditing (CIA
objectivity and competence) and external
auditing (CPA independence, integrity).
Furthermore, they will learn the goals,
responsibilities, and reporting levels applicable
to public companies (Public Company
Accounting Oversight Board—PCAOB-SOX)
and private companies (Auditing Standard
Board—ASBAICPA).
3) Clearly understand that the reason for the
audit is to add credibility to management
assertions. Often there is an adversarial
relationship between the auditor and
management. The “Professional Skepticism”
concept plays a vital role throughout the field
work, the accumulation of evidence and the
rendering of an opinion.
4) Students will display understanding the
auditor responsibilities as applicable to Audit
Attestation and Assurance Services.
and enforcement mechanisms as relate to the Code of
Professional Conduct through Multiple Choices and word
problems
1) Test questions that require the students to recognize,
compare and contrast the two broad differences –basic
skills.
2) Required them to identify and negotiating conflict
resolutions between internal and external auditors by
interpreting and analyzing dilemmas in hypothetical cases
using exercises and word problems—thinking skills.
3) Present information through cases and problems to
showcase the decision-making skills in identifying the
entities and the standard setting authorities.
1) Test questions about details relationship between
objectives and accumulations of audit evidence.
2) Test questions about statistical sampling techniques to
determine “When is enough evidence-enough?” Working
papers represent the conventions of evidence, format,
usage, and documentation in the accounting field.
3) Test questions about the procedures available to the
auditor to achieve desired objectives about assertions and
reasonably assure the stockholders
1) Test questions of real-world situations where the
students can demonstrate appropriate thinking skills,
reasoning skills, and recognition skills to identify which
services are being performed.
2) Ask the students to write short papers comparing the
role of the auditor rendering an opinion and the auditor at
the Oscar ceremony, or at the state lottery, at e-commerce
functions, or compliance of financial provisions for a loan.
3) Through case discussions and term paper on real world
company under audit. Writing in the field of auditing must
be succinct. It is easy to write too much. Students’ writing
must reflect that understanding and they will have a chance
to enhance appropriate techniques and writing skills by
doing.