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Auditing: Financial x423 Syllabus Rosalyn Wong CPA, CIA _____________________________________________________________

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UCLA Extension Business & Management On-line Course Syllabus

Course Title: Auditing: Financial x 423 (Reg.#U8364) Quarter: Spring 2009 Location: On-line Term: April 1, 2009 through June 17, 2009 Instructor: Rosalyn Wong CPA, CIA Email: [email protected] Phone: 909-979-0359 Office hours: Usually available Monday through Thursday 7-9PM PT Required text: PRINCIPLES OF AUDITING & other assurance services

17th edition ISBN 978-0-07-337965-4 Whittington & Pany Irwin McGraw-Hill

_______________________________________________________ COURSE DESCRIPTION This online course examines the auditing principles governing the responsibilities of Certified Public Accountants in examining client financial statements. Topics include professional ethics, legal liability, internal control evaluation, sampling techniques, and audit reports, as well as a study of the auditing standards issued by the American Institute of CPA’s and PCAOB. Instruction emphasizes verification of the major items reported in client financial statements, audit programs, and case studies. Also covered are practical applications of auditing procedures to account balances and transaction cycles, and development of internal control procedures for the same. GOALS AND OBJECTIVES Upon completion of the course, students should be able to:

1. Have an understanding of auditing standards for both external and internal auditing.

2. Have knowledge of the Code of Ethics and its usefulness to the profession.

3. Have an understanding of the legal responsibilities of CPAs. 4. Develop internal controls for each major accounting cycle. 5. Develop audit objectives for each major balance sheet and income

statement account. 6. Develop audit procedures and programs to accomplish audit

objectives. 7. Have knowledge of different types of audit reports.


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This course is not designed as a review for the auditing section of the CPA examination. However, the course does contain most of the fundamental auditing concepts covered therein. PREREQUISITES X 120A, B and C or consent of instructor.


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WELCOME Instructor: Rosalyn Wong CPA, CIA Hello and welcome to the class. I’m looking forward to working with you over the next 12 weeks as we explore the auditing principles governing the responsibilities of CPAs in their examinations of client’s financial statements, and go through topics including audit objectives, planning, internal control, risk assessment, and audit reports. I started my career as an external auditor in one of the big Eight Firms where I got my CPA qualifications. I had the privilege of auditing various businesses in different industries and teaching some training classes. Auditing financial institutions is my interest and specialty. Later on, I moved to work in the private industry as an Assistant Vice President in a Bank. I acquired my CIA license when I started working as an internal auditor in a Governmental entity. I can be reached through email or phone. If your questions are basic and straightforward, the quickest response will be through e-mail. Email will normally be returned within 1 day. You can also call me and leave a message as well. I really look forward to get to know more about you and work with you throughout the course. I am certain that your commitment and participation in these 12 weeks will add invaluable knowledge and skills to your career advancement. Good Luck! ☺☺☺☺☺☺☺☺☺☺☺☺☺☺☺☺☺☺☺☺☺


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Instructor Expectations Welcome! I'm looking forward to working with you, learning about what you're doing and how you plan to use the course in your career. Here are a few expectations I would like you to know about as we begin this course. Each of you will have different needs, expectations, concerns, and agendas. As your facilitator, it will be easier to help meet your needs if you communicate them directly and sincerely. I hope you'll always find that I am responsive and supportive. Feel free to email me if you have any comments. Posting Responses: I hope that you will make the commitment to post your responses for exercises, assignments, and discussions by the due dates each week. The classroom should be active all week - not just on weekends. Pacing your work earlier in the week will give you more time for larger projects when you need it. Your postings should incorporate responses to your peers, your opinions, and pertinent information from things that you’ve read, and examples from your experience. Your responses should include more than phrases such as "I agree with that" or "Interesting comment." The distinguishing feature of a well done posting might include an objective and critical analysis of what you read, what you experienced; or, possibly a short synopsis of a chapter or a related assignment from another course. Your posts should feature good writing, correct spelling, and mechanics. Communication should be professional and use good netiquette. When posting responses to classmates or to me, please type the name of the original poster and your name, then followed by your response. Please feel free to email or call me if you do not understand what to do with an assignment. This is much better than turning in an assignment that is not done correctly and losing points. Here’s to a great learning experience!


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COURSE APPROACH This course is to be completed on-line in twelve weeks. COURSE HOME PAGE This course runs on the Blackboard online delivery system. The course shell is very user friendly, and you should have no trouble navigating the platform. The course content is accessible through the navigation bar at the left of your course home page. It contains the following information:

Announcements Course updates, grade book updates, etc.

Staff Information Instructor biography and contact information

Course Information Syllabus

Course Documents Lecture materials

Assignments Homework and quizzes

Communication Communication platform

Discussion Board Weekly discussion threads

External Links AICPA, PCAOB, IIA, CFE, GAO and other relevant links

Tools Edit your profile, change your email address

My Grades View your grade book


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GRADING The final course grade is based on the following. See WEEKLY COURSE TASKS below.

Item Number Points Total %

Homework 10 20 200 40%

Quizzes 10 10 100 20%

Discussion/Participation 5 20 100 20%

Final Exam 1 100 100 20%

Total Course Points 500

The standard grading scale applies (%):

A 90-100

B 80-89

C 70-79

D 60-69

F 59 & below All grades are FINAL.


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DISCUSSION RUBRIC

This rubric will be used to assess the quality of your participation in the online discussion forums. Please use this tool as a guide when constructing your postings.

Unsatisfactory Basic Proficient Distinguished

Mechanics of the Posting

Uses incomplete sentences, is unstructured in its organization, and includes frequent or consistent errors in mechanics (grammar, spelling, usage) in each paragraph. The posting is unreadable and there is a distinct lack of tone.

Uses complete sentences and the posting is comprehensible. The organization could be improved to present a more coherent argument, statement, or question. Includes 2-3 mechanical errors grammar, spelling, usage) per paragraph. The tone is respectful.

Uses complete sentences, organization is evident, and the posting includes no more than one mechanical error (grammar, spelling, usage) per paragraph. The tone is clear and respectful.

Uses complete sentences, organization is clear and thoughtful, the posting is grammatically correct, and free of spelling errors. The tone is clear and respectful.

Participation in the Discussion

Provides minimal comments and information to other participants in the forum.

Provides comments, and some new information on a sporadic basis. Interacts with only 1-2 participants in the forum.

Provides comments, discussion, questions, and new information on a fairly regular basis. Interacts with a few participants in the forum.

Provides comments, discussion, questions, and new information on a regular, active, and weekly basis. Shows a high degree of interaction with other participants in the forum.

Content of Posting

Writes a general or superficial posting that is unrelated to the discussion at hand and/or posts no comments.

Demonstrates a restricted understanding of the concepts, topics, and ideas as evidenced by posting information that could be derived from prior posts and/or including highly general comments.

Demonstrates an adequate understanding of the concepts, topics, and ideas as evidenced by posting superficial, or general statements in the forum. Includes a few details in the posting.

Demonstrates a solid understanding of the concepts, topics, and ideas as evidenced by thoughtful responses and questions that show a clear connection (are integrated) with the course material at hand. The posting shows depth, and includes many supporting details.

Critical Thinking Evidenced by Posting

Provides no evidence of agreement or disagreement with an existing discussion.

Indicates agreement or disagreement with an existing discussion but provides no justification or explanation for comments.

Indicates agreement or disagreement with an existing discussion including a limited explanation or justification. Provides comments, discussion, and questions without a clear connection to the course material at hand.

Demonstrates a critical analysis of an existing posted idea or introduces a different interpretation to an existing concept or idea. Includes comments, discussion, and questions that have a clear connection (are integrated) with the course material at hand.


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WEEKLY COURSE TASKS Complete the following tasks each week:

1. Read the chapters, complete and submit the homework assignments which consist of PROBLEMS in the back of each chapter. Points are based primarily on completeness. All homework must contain references in proper format, where necessary. If you submit well-researched and thoughtful work, you will receive full credit. However, I do reserve the right to award less credit for sloppy, careless or incomplete work. After the homework due date, I will release the author’s solutions. Once the solution files are available, you cannot submit any assignments or quizzes listed on the syllabus. You are expected to read the solutions and send me any questions to clarify. If you do not ask questions, I will assume you understand the material. Late homework will receive no credit. However, there are alternate assignments in the event you must miss an assignment or quiz. Please ask about this in advance of a due date that you know you will miss.

2. Read the course material in the Course Documents area.

3. Participate in class discussions. Each student is required to post a

well-researched answer to the main discussion question, and post a thoughtful evaluation to another student’s posting. Therefore, a minimum of two meaningful posts (your posting and one evaluation of another student’s posting) is required to be able to obtain full scores per discussion period. Postings should be timely and contribute to the discussion during the period. Late discussion postings receive no credit. Also, simply logging on to the discussion board and reading messages does not constitute class participation. Each discussion period is two weeks in length. See discussion boards for topics and required participation.

4. Take the Weekly On-line Quiz.

IMPORTANT: Homework/Discussion/Quiz is due at midnight Pacific Time on the due date. Final exam is due 06/16/09.


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OTHER INFORMATION: Incompletes: The interim grade Incomplete may be assigned when a student's work is of passing quality, but a small portion of the course requirements is incomplete for good cause (e.g. illness or other serious problem). It is the student’s responsibility to discuss with the instructor the possibility of receiving an “I” grade as opposed to a non-passing grade. The student is entitled to replace this grade by a passing grade and to receive unit credit provided they complete the remaining coursework satisfactorily, under the supervision of and in a time frame determined by the instructor in charge, but in no case later than the end of the next academic quarter. At that time, the Registrar will cause all remaining Incompletes to lapse to the grade "F". Note: Receiving an “I” does not entitle a student to retake all or any part of the course at a later date. Student Behavior involving cheating, copying other’s work, and plagiarism is not tolerated and will result in disciplinary action. Students are responsible for being familiar with the information on Student Conduct in the General Information Section of the UCLA Extension Catalog or on the website at www.uclaextension.edu

If anything on this syllabus is unclear or ambiguous, please email me for clarification.


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COURSE OUTLINE

Week Due Date Chapter Topics Homework Discussion Quiz

1 Role of CPA 30,33 DB 1 Q1 1 04/07/09

2 Professional Standards 33,35

3 Professional Ethics 35,38 Q2 2 04/14/09

4 Legal Liability of CPAs 36,38

5 Audit Evidence & Documentation 53,55 DB 2 Q3 3 04/21/09

6 Audit Planning, Risks Assessment 42,44

7 Internal Control 43,45 Q4 4 04/28/09

8 Internal Control in IT Environment 35,36

9 Audit Sampling 42,46 DB 3 Q5 5 05/05/09

10 Cash & Financial Investments 43,45

11 A/R, N/R and Revenue 45 Q6

12 Inventories & COGS 37 6 05/12/09

13 PPE , Depreciation, Depletion 34,37

14 A/P & Other Liabilities 37,39 DB 4 Q7 7 05/19/09

15 Debt and Equity Capital 36,39

16 Auditing Operations 38,43 Q8 8 05/26/09

17 Auditors’ Reports 29,31

18 Integrated Audits 33,34 DB 5 Q9 9 06/02/09

19 Additional Assurance-Historical Financial Information 37,38

20 Additional Assurance-Other Information

32,33 Q10 10 06/09/09

21 Internal, Operational, Compliance Audit 34,36

11 06/16/09 Final Exam Due


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Week One April 1 – April 7, 2009 Reading Ch 1 – Role of CPA

Ch 2 – Professional Standards Assignment W01AS1: 1-30, 1-33, 2-33, 2-35 (due April 7)

– 5 points each, total 20 points Discussion W01DQ1: Post your Bio – Please post a bio to the discussion forum

that includes information about yourself, your job, where you live, education, and experience with Blackboard. You could also share your hobbies or personal interests. Post a photo so we can envision you as we work together. (due April 14) – 10 points

W01DQ2: Review 2-37 and post your response in the discussion

board. Also, review one of the other student’s responses and post your comment. (due April 14) – 10 points

Quiz CH1, CH2: (due April 7)

– 1 point each, total 10 points


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Week Two April 8 – April 14, 2009 Reading Ch 3 – Professional Ethics

Ch 4 – Legal Liability Assignment W02AS2: 3-35, 3-38, 4-36, 4-38 (due April 14)

– 5 points each, total 20 points Discussion Same as Week One Quiz CH3, CH4: (due April 14)



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Week Three April 15 – April 21, 2009 Reading Ch 5 – Audit Evidence & Documentation

Ch 6 – Audit Planning & Risk Assessment Assignment W03AS3: 5-53, 5-55, 6-42, 6-44 (due April 21) – 5 points each, total 20 points Discussion W03DQ3: Review 6-45 and post your response in the discussion

board. Also, review one of the other student’s responses and post your comment. (due April 28) – 20 points

Quiz CH5, CH6: (due April 21)



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Week Four April 22 – April 28, 2009 Reading Ch 7 – Internal Control

Ch 8 – Internal Control in IT Environment Assignment W04AS4: 7-43, 7-45, 8-35, 8-36 (due April 28) – 5 points each, total 20 points Discussion Same as Week Three Quiz CH7, CH8: (due April 28)



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Week Five April 29 – May 5, 2009 Reading Ch 9 – Audit Sampling

Ch 10 – Cash & Financial Investments Assignment W05AS5: 9-42, 9-46, 10-43, 10-45 (due May 5) – 5 points each, total 20 points Discussion W05DQ5: Review 10-50 and post your response in the discussion

board. Also, review one of the other student’s responses and post your comment. (due May 12)

– 20 points Quiz CH9, CH10: (due May 5) – 1 point each, total 10 points


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Week Six May 6 – May 12, 2009 Reading Ch 11 – A/R, N/R and Revenue

Ch 12 – Inventories & COGS Ch 13 – PPE , Depreciation, Depletion

Assignment W06AS6: 11-45, 12-37, 13-34, 13-37 (due May 12) – 5 points each, total 20 points Discussion Same as Week Five Quiz CH11, CH12, CH13: (due May 12)



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Week Seven May 13 – May 19, 2009 Reading Ch 14 – A/P & Other Liabilities

Ch 15 – Debt and Equity Capital Assignment W07AS7: 14-37, 14-39, 15-36, 15-39 (due May 19) – 5 points each, total 20 points Discussion W07DQ7: Review 15-41 and post your response in the discussion

board. Also, review one of the other student’s responses and post your comment. (due May 26)

– 20 points Quiz CH14, CH15: (due May 19)



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Week Eight May 20 – May 26, 2009 Reading Ch 16 – Auditing Operations

Ch 17 – Auditors’ Reports Assignment W08AS8: 16-38, 16-43, 17-29, 17-31 (due May 26) – 5 points each, total 20 points Discussion Same as Week Seven Quiz CH16, CH17: (due May 26)



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Week Nine May 27 – June 2, 2009 Reading Ch 18 – Integrated Audits

Ch 19 – Add’l Assurance-Historical Financial Information Assignment W09AS9: 18-33, 18-34, 19-37, 19-38 (due June 2) – 5 points each, total 20 points Discussion W09DQ9: Review 19-41 and post your response in the discussion

board. Also, review one of the other student’s responses and post your comment. (due June 9)

– 20 points Quiz CH18, CH19: (due June 2)



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Week Ten June 3 – June 9, 2009 Reading Ch 20 – Additional Assurance-Other Information

Ch 21 – Internal, Operational, Compliance Audit Assignment W10AS10: 20-32, 20-33, 21-34, 21-36 (due June 9) – 5 points each, total 20 points Discussion Same as Week Nine Quiz CH20, CH21: (due June 9)



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Week Eleven June 10 – June 16, 2009 Reading Ch 1 to Ch 21 Final Exam due June 16, 2009

– 100 points