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.
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.
- 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
Required Text and Materials
Note: Students must source the following text on their own.
Arens, Elder, Beasley, Splettstoesser-Hogeterp. Auditing: The Art and Science of Assurance
Engagements. Canadian Twelfth (12th) Edition. Pearson Canada, 2013.
A computer with Internet access is required.
Open Learning Faculty Member
An Open Learning Faculty Member is available to assist you throughout the course. Primary communication is through Learning Environment’s "Mail" tool or by phone. Students will receive the necessary contact information when starting the course.
To successfully complete this course, students must achieve a passing grade of 50% or higher on the overall course, and 50% or higher on the final mandatory exam.
|Final Exam *||60%|