ACCT 4231
Assurance

3.0 Credits

Description

Students will learn to gather and evaluate audit evidence related to company financial statements. The goal is to provide assurance that the financial statements fairly present the financial performance and position of the organization being audited. Risk assessment techniques available to auditors and possible responses to those risks will be examined. Topics include an introduction to auditing and the public accounting profession; the audit process; professional relationships and legal liability; materiality and risk; audit evidence, evidence mix and audit strategy; the audit of internal controls, control risk and corporate governance; audit sampling; application of the audit process and auditor reporting.

Delivery Method

Web-based.

Prerequisites

None.

Recommended: ACCT 3211-Intermediate Financial Accounting 2

Exclusions

ACCT 4230-Assurance

Objectives

After successfully completing this course, students will be able to:

  • Discuss the role of financial statement auditing and the structure and regulatory framework for auditing in Canada according to Canadian Audit Standards (CAS).
  • Describe the audit report and explain conditions for qualifications in the audit report.
  • Identify the stages of the audit process and the major activities undertaken at each stage.
  • Assess professional ethics and legal liability with respect to the audit function.
  • Explain how materiality and various risk assessments impact the audit program.
  • Analyze internal controls and determine audit procedures to test controls.
  • Utilize sampling techniques to select sample sizes, items and to analyze sampling results in an audit.
  • Apply appropriate audit activities to audit the sales and collections cycle, cash balances, the human resources and payroll cycle, the acquisition and payment cycle, the inventory and distribution cycle and the capital acquisition and repayment cycle.
  • Describe other assurance and non-assurance engagements undertaken by public accountants and audit activities carried out by government and internal auditors.

Course Outline

  • Module 1: The Demand for Auditing and the Public Accounting Profession in Canada
  • Module 2: Professional Relationships: The Role of Ethics, Independence and Legal Liability
  • Module 3: Audit Responsibilities and Objectives
  • Module 4: Client Risk Profile, Documentation, and Materiality
  • Module 5: Evidence and Internal Controls
  • Module 6: Audit Strategy, Program and Sampling Concepts
  • Module 7: Audit of the Sales and Collections Cycle
  • Module 8: Audit of Cash, Human Resources and Payroll
  • Module 9: Audit of the Acquisition and Payment Cycle and the Inventory Distribution Cycle
  • Module 10: Audit of the Capital Acquisition and Repayment Cycle
  • Module 11: Completing the Audit and reporting
  • Module 12: Assurance Services: Review and Compilation Engagements

Maximum Completion

30 weeks.

Required Text and Materials

Arens, Elder, Beasley, Splettstoesser-Hogeterp. Auditing: The Art and Science of Assurance Engagements. Canadian Twelfth (12th) Edition. Pearson Canada, 2013.
Type: ISBN 978-0-13-279156-4

Note: Students will receive a custom reprinted textbook with the ISBN: 1-323-23713-5. This ISBN differs from the one above, however all content is the same.

Additional Requirements

A computer with Internet access is required.

Open Learning Faculty Member Information

An Open Learning Faculty Member is available to assist you throughout the course. Primary communication is through the Learning Management System's "Mail" tool or by phone. Students will receive the necessary contact information when starting the course.

Assessment

In order to successfully complete this course, students must obtain at least 50% on the final mandatory examination and 50% overall. It is strongly recommended that students complete all assignments in order to achieve the learning objectives of the course.

Assignment 1 10%
Assignment 2 10%
Assignment 3 10%
Assignment 4 10%
Final Exam * 60%
Total 100%

* Mandatory