ACC435A Auditing I
Lead Faculty: Dr. Connie Fajardo
Course Description
A study of financial statement audits by CPAs performed in accordance with AICPA generally accepted auditing standards. Topics include professional ethics, legal liabilities, the planning of audit engagements, internal control and its relationship to the nature, timing and extent of evidence-gathering procedures, EDP controls and audit sampling.
Learning Outcomes
- Apply generally-accepted auditing standards promulgated by the American Institute of CPAs.
- Analyze fact situations dealing with ethical issues, and assess the conduct of the auditor in the light of professional rules of conduct.
- Explain and provide appropriate examples of the financial statement assertions upon which the objectives of the audit are based.
- Describe and apply the following concepts relating to the planning of an audit engagement: audit risk, inherent risk, control risk, detection risk, planning materiality, tolerable misstatement, analytical procedures, audit plan and audit program.
- Document a client's internal control system and analyze the strengths and weaknesses of the control procedures, which the client has adopted.
- Apply analytical procedures in the planning stage of the audit, during the audit as substantive tests, and in the overall review stage of the audit.
- Explain and apply the following concepts and their relationship to audit sampling: acceptable risk of assessing control risk to low, tolerable deviation rate and tolerable misstatement, expected population deviation rate and expected misstatement, variability in a population as measured by standard deviation.
