SYLLABUS

AKU 3301 – AUDITING 1

Prerequisite: AKU 2101 Intermediate Accounting 1
Credit Hours: 3

Instructor:

Course Description
This course is the first course in auditing subject. This course has an overall objective to help
students to learn the basic concepts and practices of auditing and assurance services as well as to
understand the auditor ethics and responsibilities. Also, it helps students to understand the basic
concepts that underlie the audit process and how to apply those concepts to various audit
assurance services. Through the first part of auditing course, much attention is given to the
conceptual, theoretical and practical aspects of auditing financial statements. This course will
also examines auditing theory and practice, emphasizing audit standards in Indonesian context,
audit risks, materiality, characteristics of evidence, internal controls, auditors’ reports and
professional ethics, sampling, and audit programs.

Course Objectives
After completion of this course, students are expected to be able to:
1. Understand why there is a demand for auditing and assurance services
2. Differentiate between auditing and accounting
3. Understand the relationship among auditing, attestation, and assurance services
4. Know the different types of auditors and their types of services
5. Understand the issues currently affecting the profession
6. Understand generally accepted auditing standard and their relationship to standard
auditing
7. Understand the relationship among financial statements, management assertions, and
audit objective
8. Demonstrate to develop audit procedures to achieve audit objectives
9. Apply various sampling methods in audit procedures
10. Learn the major phases of the audit process
11. To know and write basic elements of audit reporting
12. Make use of concepts and theories as tools to evaluate cases and problems in auditing
13. Demonstrate the ability to apply appropriate statistical methods in auditing
14. Demonstrate the ability to design research activities to solve the problem in auditing
15. Write and communicate audit reports and working paper
16. Make use of teamwork to provide solution for cases and projects in financial auditing
17. Demonstrate the ability to work effectively in a group and to motivate other group
members
18. Understand the professional ethical concept, to exercise ethical judgments and to choice
the appropriate decision in ethical dilemma
Course Materials
1. Boynton, Johson, and Kell, Modern Auditing, 8th Edition, Wiley International Edition,
Singapore, 2006 (A)
2. Arens, Elder and Beasley, Auditing and Assurance Services: An Integrated
Approach, Prentice Hall, 14th Edition, 2012 (B)
3. Institut Akuntan Publik Indonesia, Standar Profesional Akuntan Publik, Per 31 Maret
2011, Salemba Empat, Jakarta, 2011 (SA)
4. Institut Akuntan Publik Indonesia, Kode Etik ProfessiAkuntan Publik, 2009 ( D),
Kode Etik ini ada di buku SPAP Maret 2011
5. Undang Undang no:5 tahun 2011, tentang Akuntan Publik (E)
6. Keputusan Ketua BAPEPAM-LK NOMOR: KEP-347/BL/2012 tentang Penyajian dan
Pengungkapan Laporan Keuangan Emiten atau Perusahaan Publik (F)
7. www.iapi.or.id
8. www.iaiglobal.or.id
9. www.bapepam.go.id
10. www.ifac.org/iaasb (International Auditing and Assurance Standard Board)
11. www.aicpa.org (American Institute of Certified Public Accountant)
12. Related articles and text books in auditing

Student’s Responsibilities
 The Department of Accounting FEB UGM does not tolerate academic dishonesty. All
violation will be recorded in the FEB systems. For the first offense, a student who violate the
academic integrity will receive a zero point for the assignment (i.e. home work, quiz or
exam). For the second offense, the student will receive a grade of “E” in the course where
the student commits the second. For the third offense, the Department will recommend that
the student be dismissed from the University.
 Read the materials and do the homework to be discussed in each session before class
meeting. Each class meeting should be used to confirm the students’ understanding of the
material and discussion the homework. The students should submit the individual homework
before the class meeting, submitting after that time will be ignored.
 Students are expected to attend all scheduled class meetings. Absence from class meetings
shall not exceed 25%. Students who exceed the 25% limit without a medical or emergency
excuse acceptable to and approved by the Associate Dean of Academic shall not be allowed
to take the final exam and shall receive a grade of E from this course.
 Operating laptop, mobile phone, and other communication devices are strictly prohibited
during class meetings. Any student found operating these devices should leave the class and
will be considered as an absence for the class meeting.
 Students are expected not to be late not more than 15 minutes.

Academic Integrity
Academic integrity forms a fundamental bond of trust between colleagues, peers, lecturers, and
students, and it underlies all genuine learning. There is no tolerance for plagiarism or academic
dishonesty in any form, including, but not limited to, viewing the exams of others, sharing
answers with others, using books or notes while taking the exam, copying answers or papers, or
passing off someone else’s work as one’s own. A FAILURE OF AN ENTIRE COURSE (a
grade of “E”).

Teaching Methods
The student centre learning method is used in this course. Lectures will be the forum for the
introduction and general discussion of each topical issues. To assimilate the material more
readily and in turn enhance better quality discussions, students have to read the relevance topics
prior to attending the class. The instructor will assume that this has been done.
The class will be the forum for students to cement the material covered in the lectures. Such
tutorial will consist of multiple choice questions, essays, case discussions and class
presentations. Students must attempt the assigned tutorial; questions prior to attending the
corresponding tutorial. One more, the instructor will assume that this has been done.

Grading
Your grade will be determined based on your total score on the following items:
1. Class Attendance and Participation: 10%
2. Assignments/ home works: 15%
3. Quizzes: 10%
4. Mid-Term Examination: 25%
5. Final Examination: 25%
6. Class Projects (group: 3-4 students): 15%
TOTAL: 100%

Your final score will be mapped to a course grade based on the following scheme:
A 90 or above C+ 65 to 69
A- 85 to 89 C 60 to 64
B+ 80 to 84 D 50 to 59
B 75 to 89 E below 50
B- 70 to 74
Course Outline

Week Topic Ref Homework

1 Auditing and the Public Accounting Profession- A-1;
Integrity of Financial Reporting B-1;
- Auditing and Assurance Services Defined SA 100
- The Demand for Auditing
- Organizations Associated with the Public
Accounting Profession
- Regulatory Framework for Ensuring High-
Quality Services
- Focus on Auditor Knowledge
2 Auditors’ Responsibilities and Reports A-2;
- Fundamentals Underlying Financial Statement B-2&3;
Audits SA 500
- Auditing Standards
- Assurance Provided by an Audit
- The Auditor’s Report on Financial Statements
- The Auditor’s Report on Internal Control
- Focus on Auditor Knowledge and Audit
Decisions
3 Professional Ethics A-3;
- Ethics and Morality B-4;
- AICPA Code of Professional Ethics D
- Rules of Conduct
- Enforcement of Rules of Conduct
4 Auditor’s Legal Liability A-4;
- Liability Under Common Law B-5;
- Liability Under Securities Law E, F
- Other Considerations
5 Overview of Financial Statement Audit A-5;
- Overview of the Audit Process B-6;
- Phase I: Perform Risk Assessment Procedures SA- 310
- Phase II: Assess the Risk of Material s/d 318
Misstatement
- Phase III: Respond to Assessed Risks
- Phase IV: Perform Further Audit Procedures
- Phase V: Evaluate Evidence
- Phase VI: Communicate Audit Findings
6 Audit Evidence A-6;
- Audit Evidence and Assertions B-7;
- Sufficient Competent Evidence SA 326
- Audit Procedures s/d 339
- Four Decisions About Audit Procedures
- Documenting Audit Decisions and Audit
Evidence
7 Accepting the Engagement and Planning the Audit A-7;
- Client Acceptance and Client Retention B-8;
- Audit Planning and Risk Assessment SA 310,
Procedures 311,
- Understanding the Entity and Its Environment 320
MID EXAM
8 Materiality Decisions and Performing Analytical A-8;
Procedures B-9
 - Materiality Decisions SA-312;
- Performing Analytical Procedures 329
9 Audit Risk, Including the Risk of Fraud A-9;
- Audit Risk – An Overview B-11;
- Assessing the Risk of Fraud SA 316;
- The Audit Risk Model 317
- Preliminary Audit Strategies
10 Understanding Internal Control A-10;
- Introduction to Internal Control B-10;
- Components of Internal Control SA 319;
- Understanding Internal Control
11 Audit Procedures in Response to Assessed Risks: A-11;
Test of Control B-13
- Process for Assessing Control Risk
- Assessing Control Risk in an Information
Technology Environment
- Effects of Preliminary Audit Strategies
- Designing Test of Controls
- Additional Considerations
12 Audit Procedures in Response to Assessed Risks: A-12;
Substantive Tests B-13
- Assessing the Risk of Material Misstatement
- Designing Substantive Tests
- Developing Audit Programs for Substantive
Tests
13 Audit Sampling for Test of Controls A-13;
- Basic Audit Sampling Concepts B-15;
- Test of Controls SA-350
14 Audit Sampling for Substantive Tests A-13;
B-
15&17;
SA350
FINAL EXAM