BRAC Business School

BRAC University
Fall Session – 2015

Course Title: ACT 425 (Principles of Auditing)

Course Instructor: Sabbir Ahmed, FCA

Class Timings:

Section Day Class Time Class Hours Room #

01 Sunday 11:00 - 12:20 1:20 UB 20102
01 Tuesday 11:00 - 12:20 1:20 UB 20102

Recommended books and Journals:

Essential
 Assurance Study Manual – ICAB Professional Stage Knowledge Level
 International Standard on Auditing (ISA) and Bangladesh Standard on Auditing (BSA)

Optional but not essential for further reading and enhancement of knowledge
 Arens and Loebbeck – Auditing, An Integrated Approach
 B.N. Tandon – A Handbook of Practical Auditing

Course Description and Objective:

This undergraduate course is designed to provide:

 An Introduction to auditing practices and responsibilities, including its social role as well
as involvement of various stakeholders and relationship with Corporate governance;

 Professional ethics, auditors’ independence, conflicts and threats and safeguards;

 Financial auditing process, understanding of audit planning and risk assessment, evaluation
of internal control, gathering and evaluating audit evidence, and audit conclusions and
reporting; and

 Beyond traditional financial audit- value added services offered by the auditors.

Expected Outcomes:
Upon the successful completion of this course, the students will be able to:

 Understand the audit and its importance in practical field;

 Apply the Auditing Standards in practical area;
 Understand an auditor’s role in the Society and to various stakeholders;
 Assessment of risks and minimization of risk by effective internal control system; and
 Reporting on Financial Statements.
Grading Criteria:
Your performance will determine your grade:

Assessment Point
Mid Term 25 5 Short questions out of 8 – Time 50 minutes
Final 30 1 out of 2 broad questions (10),
2 practical examples/case studies (5+5)
and
5 short questions (5*2),
Time 120 minutes
Quizzes 15 MCQ
Assignments (Cases) Mid-Term 10 Group
Term Paper & Presentation – 15 Group
Final
Class Participation 5
Total 100

Grading Scale:

Range Grade Points Performance

90 below 100 A 4.0 Excellent
85 below 90 A- 3.7
80 below 85 B+ 3.3
75 below 80 B 3.0 Good
70 below 75 B- 2.7
65 below 70 C+ 2.3
60 below 65 C 2.0 Fair
57 below 60 C- 1.7
55 below 57 D+ 1.3
52 below 55 D 1.0 Poor
50 below 52 D- 0.7
Below 50 F 0.0 Failure

Examinations:
Examinations are divided into two parts -

 Midterm – it will includes short questions; and

 Final - it will include mix of short and broad questions.

Quizzes:
Quizzes are outstanding brain storming preparation for the students. Quizzes will be arranged in
the class after wrapping up of selected topics.
Assignments:
Assignments may includes Case Studies, Article Reviews (published in different Journals, News
Papers and Websites, etc.), discussion with the employees of different Organizations. Case
Studies will be summarized in the following manner:

 Two or three short case studies will be given.

 Identify the problems.
 Action plan to solve the problems.
 Alternative plan to solve the problems (if any).
 Chosen actions and its justifications.
Proposed topics for Assignment
Audit Planning – Understanding the entity
o Bank
o Mobile Telecom Operator
o Ready-Made Garments (Export Oriented)
o Pharmaceuticals Company
o Any Other Industry of Your Choice

Term Paper/Presentation:
After the mid-term exam, students have to prepare a final term paper. Students have to choice a
topic and submit it to the Course Instructor for approval. The deadline for approval is determined
by the Instructor. Students will form a group with four(4) to six (6) members and submit the term
paper in individual group name. The presentation for term paper will be approximately 10 – 12
minutes long (including questions and answers from Audience). Term paper should be three (3)
pages in length/5 Power Point Slides, with the 12 point font. The paper should have the
following major sections:

 Cover page with title, team member’s name and one page executive summery.
 Overview of the topics
 Analysis of related topics and audit risks
 Audit program on related topics
 Reference.
Term paper will be evaluated based on the accuracy, integration of class materials, conciseness,
support of conclusions, style overall professional appearance, and very important is grammatical
uses.

Class Participation:
This is under-graduate program where we learn, develop and ask questions. Accordingly, it is
expected that students should attend class and actively participate in the class discussion. Daily
class activities provide important feedback about how much students know about the subject
matter and their level of effort and preparation.
Class
no Date Day Topics Reference

Introduction, concept and need of audit, Chapter 1 and class

1 06-Sep-15 Sunday audit and assurance note
Ethical standards, independence, Chapter 14 and 15,
2 08-Sep-15 Tuesday Conflict and its resolution Class note

Chapter 16 and class

3 15-Sep-15 Tuesday Confidentiality note
Client acceptance and continuation,
Agreeing Terms of Audit, Engagement Chapter 2 and class
4 18-Sep-15 Friday Letter note and ISA 210

Chapter 4 Section 1
and Chapter 11
5 22-Sep-15 Tuesday Documentation and audit evidence section 1, ISA 230

Class note , ISA 240

6 04-Oct-15 Sunday Audit process and ISA 250

Audit Planning- Understanding the

entity, its business, customer, supplier, Chapter 3 Section 1
7 06-Oct-15 Tuesday products and 2, ISA

Quiz (shifted from 27 September 2015) From presentation

Consideration of Laws and regulations Class note
8 10-Oct-15 Saturday and Fraud in audit

Materiality and Risk Assessment.

Various Types of Risks (i.e. Inherent,
9 11-Oct-15 Sunday Control, Detection and Audit Risk) Chapter 3 Section 3

10 13-Oct-15 Tuesday Revision

11 18-Oct-15 Sunday Mid-term exam On Classes 1 to 12

12 20-Oct-15 Tuesday Submission of Assignment

13 25-Oct-15 Sunday Internal control Chapter 5

14 27-Oct-15 Tuesday Control evaluation and IT in audit Class note

Risk management, Quality control at

Firm level and engagement level
15 31-Oct-15 Saturday (transfer from 29 September 2015) Class note
 Chapter 13 and class
16 01-Nov-15 Sunday Substantive testing note
Chapter 11 Section 2
17 03-Nov-15 Tuesday Sampling and 3, class note

18 08-Nov-15 Sunday Analytical procedures Class note

Class note, ISA 560
19 10-Nov-15 Tuesday Going concern/subsequent event and ISA 570

Overall conclusion and completion of

20 15-Nov-15 Sunday audit, management representation Class note, ISA 580
Chapter 4, section 2,
21 17-Nov-15 Tuesday Audit Report ISA 700

Modification of audit report, Other

22 22-Nov-15 Sunday reporting matters Class note
23 24-Nov-15 Tuesday Term paper presentation (Group)

Topic to be finalized
24 29-Nov-15 Sunday Revision/Recap by 15 Nov 2015
25 08-Dec-15 Tuesday Final Examination On Classes 15 to 25