This is a continuation of Auditing Theory, focusing on financial statements audit. It covers detailed approaches to problems and situations normally encountered in the independent examination of cash, receivables, inventories, investments, prepaid expenses, deferred charges, property, plant and equipment, intangibles, liabilities, owner’s equity, and revenue and expenses. It deals specifically with the application of auditing standards, techniques, and procedures; internal control evaluation; preparation of audit working papers; introduction of computer application in auditing; audit adjustments; and audit reports pertaining to a medium-sized manufacturing or trading concern. The determination of audit objectives and audit  programs, evaluation of internal control, and determination of substantive procedures as applied to various accountants’ are better appreciated as the transaction cycle approach is employed in the course. Audit working papers and audited financial statements are the natural outputs of this course leading to the preparation of audit reports.

 

Credit: Six (6) units

 

Prerequisite: BSA 411. 1 Auditing and Assurance Services 1

 

Required Textbook:     Practical Auditing latest edition, by: Zenaida S. Bijasa-Sangcal

Other Resource:          Philippine Standards of Auditing (PSA)

                                    Philippine Accounting Standards (PAS) and Philippine Financial Reporting Standards (PFRS)

                                    Practical Auditing, latest edition by Elenita B. Cabrera

 

Course Objectives:     At the end of this course, the students are expected to:

 

                        Cognitive:

1.      Explain the nature of auditing, the audit processes and audit planning.

2.      Describe the nature, documents and records, and specific audit processes for each transaction cycle.

3.      Indentify the process of completing the audit and reports preparation.

4.      Apply appropriate auditing practice and procedures to relevant situations.

 

                        Psychomotor:

1.      Gather substantive audit procedures relevant to given audit objectives and assertions.

2.      Prepare audit report appropriate for the team’s audit conclusion.

 

                        Affective:

1.      Integrates the ethical provisions in conducting the audit

2.      Displays concern about the truth or fairness of the information which the financial statements purports to represent.

 

1.      Working papers and practice set

 

            The student’s responsibility is to come to each class prepared. She is also expected to take all examinations on the date’s schedule. She should read the assigned problems prior to class. She is expected to attend each class and participate actively in the discussions.

 

            All BSA students are expected to be academically honest. Cheating, lying and other forms of immoral and unethical behaviour will not be tolerated. Any student found guilty of cheating in     examinations or plagiarism in submitted course requirements will (at a minimum) receive an F (or 0.00) or failure in the course. Plagiarism and cheating refer to use of unauthorized books,  notes or otherwise; securing help in a test, copying tests, assignments, reports, or term papers; representing the work of another person as one’s own collaborating, without authority, with another student during an examination or in preparing academic work; signing another student’s name on attendance sheet; or otherwise practicing scholastic dishonesty.

 

	1st Half	2nd Half	Total
Quizzes	20%	25%	45%
Attendance, Seatwork, Assignments	5%	5%	10%
Departmental examinations	20%	25%	45%
Total	45%	55%	100%

 

 

 

 

 

 

 

 

References:           Konrath, L.F. (2002) Auditing: A Risk Analysis Approach, 5^th edition, South Western                                                            College Publishing,

                              Kieso, D.E., Weygrandt, J.J. & Warfield, T.D. (2005), Intermediate Accounting 11^th ed.

                        John Wiley and Sons, Inc., Mutual Books, Inc., Manila

                              Messier, Jr., W.F. (2001), Auditing, & Assurance Services: A Systematic Approach,                                  

                        2nded.Irwin McGraw Hill, Singapore