B AN G CO LLE G E OF B U SI N E SS

DEPARTMENT OF ACCOUNTING

COURSE SYLLABUS

ACC 4203 Auditing (3 Credit Hours)

Prerequisites: ACC 3202 Intermediate Accounting II

1. Sections Schedule

Section Instructors name Classroom, Time

Yoon Shik Han Mon. & Wed. 14:30-15:45 (New 117)
1
Yoon Shik Han Mon. & Wed. 16:00-17:15 (New 204)
2

2. Instructor(s) Information:

Instructor(s)s name(s) Office Phone E-mail Office Hours

270-4440,
Yoon Shik Han, MBA,CPA,CFE #320 yshan@kimep.kz M,W 4-5
Ext.: 2251 T,Th. 11-12

3. Course Description:
 This course is valuable to all students who wish to sit for the CPA or ACCA exam, since
completing this course is required for that exam. This course is of obvious benefit to students
wishing to become external auditors - it provides insight on professional standards, and the
application of those standards to the audits of clients financial statements. It is also beneficial
for students wishing to conduct internal or governmental audits because the judgment
processes involved in external auditing are similar in those professional contexts. Students
planning to become financial analysts, financial managers, or tax professionals will find this
course beneficial because understanding the role of external auditors in the financial reporting
process is a key to understanding how management compiles financial statements that
regulators and creditors will accept. Overall, this course yields knowledge about how external
audits provide the credibility necessary for financial statements to add value in the capital
markets.

4. Course Objectives: Students need to develop and demonstrate

AUDITING AND RELATED BUSINESS KNOWLEDGE

You will be given an opportunity to gain an understanding of the theory and practice of
auditing and assurance services. Auditing includes the accumulation and evaluation of
evidence about a company's financial and non-financial information to make and report a
judgment about the relationship between the reported information and established criteria.

You will be given an opportunity to gain an understanding of the judgments commonly made
by auditors, including judgments about the evaluation of client-related risks, the
accumulation and evaluation of audit evidence, and the issuance of an appropriate report.

You should be able to perform a risk analysis of a company and identify the implications of
that risk analysis for the conduct of the audit.

CRITICAL THINKING SKILLS

Critical thinking is a rational response to questions that cannot be answered definitively and
for which all the relevant information may not be available. Critical thinking is an
investigation whose purpose is to (1) analyze a problem, (2) arrive at a conclusion that
integrates all available information, and (3) justify that conclusion convincingly to others.
You will be given an opportunity to develop critical thinking skills by completing case-
related research tasks, group learning and interaction tasks, and written and oral
communication tasks.

You must recognize that auditing is not like most of your previous courses where you could
reach a defined textbook answer. This course is aimed at developing and internalizing a
model for making audit judgments. Thus, you will need to apply the concepts by engaging in
 critical thinking about the concepts. Memorizing concepts is not desirable in this course.

5. COURSE REQUIREMENTS

To meet the course objectives, the following requirements will be made.

EXAMINATIONS: There will be a mid-term exams and a final exam. The mid-term exam
will be given during class, or in the evening, and the final exam will be given during finals
week according to the KIMEP schedule. The format of the exams will include multiple
choice questions and short answers. Make-up exams will only be given for cases of
documented emergencies or university-scheduled events.

PROFESSIONAL BEHAVIOR: To foster a more professional learning environment, all

participants must engage in appropriate professional behavior. Professional behavior is
characterized by the following attributes: prompt arrival to class, courteous behavior in
class (i.e., being attentive while others are speaking, dedicating your attention to this
class while the class is in session, leaving class at the designated time, etc.), and
professional level preparation for classes.

To prepare for class professionally, you should read the chapter prior to class, complete
assigned problems, engage in class discussion, and actively participate in group activities.

1. Complete the Multiple Choice Questions for each assigned chapter. We will not
discuss these questions specifically in class. These questions are designed to assure
that you have a basic understanding of the concepts. I will take it as a given that
you have read and understood the answers to these questions following the
completion of each chapter.

2. Be prepared to discuss all readings and homework on the dates assigned.

Homework problems will be collected on a surprise basis six times during the
semester, and you may drop the lowest score. The homework must demonstrate a
level of preparedness that allows for in-class participation. The important thing is to
have thought about the questions and to be prepared to discuss them.

3. The course will be taught primarily in a lecture and discussion mode. To get the
most out of the course, you must be prepared for discussion every day. You should
come to class with a list of questions on everything you do not understand, and you
should be prepared to discuss your opinions on professional issues. In other words,
you do not have to have a specific question in order to participate; I am very
interested in your opinions. You should not wait for me to call on you if you wish to
maximize your performance in this class.

4. The points for professional behavior and participation will be subjectively assigned
based on my observation throughout the semester. Students who attends class every
 day, is prepared, volunteers answers, asks good questions, and discusses interesting
opinions will be given full participation points. Students coming to class late and
missing class without checking with me in advance or without a good excuse
will rarely get any points. Lack of meaningful participation and sporadic
attendance will result in 0 points.

5. I expect that all work will be the work of the individual or individuals that have
turned it in. No plagiarism. If you are found to have copied others work for the
first time, you will get zero point for the assignment and get F grade for the
course when you are caught second time. Let me make it clear that I have a
stronger personal conviction on the importance of professionalism than KIMEP
policy on academic dishonesty and have zero tolerance for ethical lapses either
in this course or in the program. I RESERVE A RIGHT TO GIVE YOU
RETAKE OF ANY EXAMS OR JUST FAIL YOU IF YOU REFUSE TO
RETAKE THE EXAM BASED ON MY PURE PROFESSIONAL JUDGMENT
IN CASE ANY DOUBTFUL EVENTS OCURRED.

6. Assessment Scheme:

5 pts Attendance Bonus (Only for fully participated students)

10 pts - Class participation and professionalism
10 pts - Homework
10 pts - Project (to be posted separately)
30 pts - Mid-term Exam
40 pts - Final Exam
105 pts Total

7. Grading Scale, according to the Catalog 2010-11:

A+ 90-100 C 63-66
A 85-89 C- 60-62
A- 80-84 D+ 57-59
B+ 77-79 D 53-56
B- 70-72 D- 50-52
C+ 67-69 F Below50

However, this is a simple guideline because final grading will be assigned on a relative
basis. In other words, you may get A+ if you are the highest score with only 80 or get
B even if you are 90 if one third of the class performs better than 90.

8. Required Materials

Rittenberg, L., K. Johnstone, and A. Gramling. Auditing 7th Edition (International edition),
Cengage Learning, 2010
Trussel, The lake Side Company- Case studies in Auditing. (11th ed.)

9. Course Schedule

Date Topic Chapter Problems( Tentative)

Week 1 Auditing: Integral to the Economy 1
02.09
Week 1 Auditing: Integral to the Economy 1
04.09 ISA 200

Week 2 Corporate Governance & Audits 2 2-60

09.09 ISA 260

Week 2 Professional Ethics 3

11.09 Ethical Dilemma

Week 3 Judgmental and Ethical Decision-Making 3, 4

16.09 Frameworks and Associated Professional
Standards
Week3 Video session by other supervisor A Fraud Case-Crazy Eddie
18.09 How to prevent and detect F/S fraud
Week 4 Corporate Governance & Audits in relation to 2
23.09 Audit Risk, ISA 260
Week 4 Audit Risk, Business Risk, and Audit Planning 4 Lakeside 1st Case
25.09 ( Ex.1)

Week 5 Audit Assurance Model

30.09
Week 5 Risk-based Audit Approach 4 Compare Engagement Letters,
02.10 ISA 240 Appendix 1 Case 3, exhibit 3-1
Module ISA 320-450-700 ISA 210 Appendix 1
Week 6 6 potential errors 5
07.10 Internal Control over Financial Reporting

Week 6 Internal Control over Financial Reporting 5 Business Process discussion

09.10 Control Activities (Deloitte material)
Holiday Intro to Business Process Risks and Controls HW due Oct.14
Make-up
on 19th For 3 hours (2-5pm)
Week 7 Intro to Business Process Risks and Controls; 18-35, 4-51
14.10 Performing an Integrated Audit 6

Week 7 Performing an Integrated Audit

16.10 Integrated Audit Process
ISA 265
Week 8 SAS 99 9 Goodner Brothers
21.10 Overview of Fraud
Week 8 SAS 99, ISA 240
23.10
Week 9 Mid-term 1-9, except 7,8
28.10
Week 9 Introduction to Testing Controls 8 8-39
30.10 ISA 330

Week 10 Introduction to Testing Controls

04.11 ISA 330

Week 10 Audit Evidence: A Framework 7 7-39

06.11 Audit Evidence and Directional Testing
ISA 500

Week 11 Audit Evidence: A Framework

11.11 Audit Evidence and Directional Testing
ISA 500
Week 11 Tools to Gather Audit Evidence 8 Lakeside Case 7
13.11 Substantive Procedures Ex. a, b
ISA 520

Week 12 Sampling and Substantive Procedures 8 Case 10, 11

18.11
Week 12 AUDITING REVENUE AND RECEIVABLES 10, Case 5
20.11 We focus on the audit of receivables today, but
take a close look at an audit failure

Week 13 AUDIT OF ACQUISITION AND PAYMENT 11 Case 6

25.11 CYCLE We will focus primarily on the audit of
inventory, but will also cover the audit of
expenses. For this session, we will focus on the
overall approach and cover inventory

Week 13 INVENTORY Observation 11 Case 8

27.11

Week 14 COMPLETING THE AUDIT. All of the topics 15 Case 9, 11

02.12 are important; we will focus on going concern
problems and auditing for subsequent events.

Week 14 AUDITORS REPORTS. We will focus on the 16

04.12 traditional audit reports

Week 15 AUDITOR COMMUNICATION. Focus on audit 16

09.12 reports, reviews, and compilations.

Week 15 A wrap-up discussion of issues that affect the

11.12 auditors legal liability and review for Final Exam
 12.11 FINAL EXAM
(Wed)
The above schedule is tentative and subject to change due to holiday, make-up class
and guest lectures.

COURSE OBJECTIVES AND THEIR ASSESSMENT

Learning Outcomes How they will beHow to assess

taught
An understanding of the theory and Classroom discussions,Homework, quiz, test
practice of auditing and assurance cases, projects
services
An understanding of the judgmentsClassroom discussions,Homework, quiz, test,
commonly made by auditors cases, projects case analysis
A risk analysis of a company andClassroom discussions,Homework, quiz, test,
identify the implications of that riskcases, projects case analysis, etc.
analysis for the conduct of the audit
develop critical thinking skills Classroom discussions,case-related research
cases, projects tasks, group learning and
interaction tasks, and
written and oral
communication tasks
developing and internalizing aClassroom discussions,case-related research
model for making audit judgments cases, projects tasks, group learning and
interaction tasks, and
written and oral
communication tasks