COLEGIO DE SAN JUAN DE LETRAN Intramuros, Manila College of Business Administration and Accountancy ACCOUNTANCY AREA School Year

2005-2006 I. II. III. IV. V. Course Number Course Title Credits Prerequisite : : : : ACCTG. 14-02 Auditing Problems 6 units Acctg. 13-02

Course Description : This is a continuation of Auditing Theory, focusing on the 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, owners 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 accounts 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. : The conduct of audit by an independent Certified Public Accountant has been one of the areas in which a CPA may engage in, thus an understanding of the whole audit process is essential to a CPA candidate.

VI. Course Rationale VII. Course Objectives: A. General Objective B. Specific Objectives Cognitive Affective Psychomotor

: : : : :

At the end of the course, the students are expected to establish a full grasp of the application of audit concepts in practice.

Attain a thorough understanding of the detailed approaches normally encountered in the independent examination of assets, liabilities, capital/stockholders equity, income and expense accounts. Integrate the values of honesty and objectivity in the conduct of audit. Sharpen the necessary skills in the application of audit procedures and internal control evaluation.

SPECIFIC OBJECTIVES At the end of the course, the student should be able to Define the basic principles and concepts of audit engagements.

SUBJECT MATTER

VALUES INTEGRATED

I. Starting the audit. Awareness of the a. Auditing defined auditing process. b. Audit Process c. Generally accepted auditing standards d. Engagement memorandum e. Letter of engagement f. Internal control questionnaire

STRATEGIES/ TEACHING METHODLOGY Lecture-Discussion Question and answer Assigned readings

INSTRUCTIONA L MATERIAL Books Illustrative/ Demonstration Problems Exercises

EVALUATION Recitation Quizzes Homework Board Work

TIME FRAME 1st week

EXPECTED OUTPUT

Defined the basic principles and concepts of audit engagements.

COMMUNITY SERVICE INTEGRATION List down the cash audit procedures. II. Audit of Cash a. Audit objectives b. Audit procedures c. Audit program d. Internal Control e. Frauds on Cash f. Internal Control questionnaire g. Summary of GAAP III. Audit of Investments a. Audit Objectives b. Audit Procedures c. Audit Program d. Internal Control e. Frauds on Investments f. Internal control questionnaire g. Summary of GAAP IV. Audit of Receivables a. Audit objectives b. Audit procedures c. Audit Program d. Internal Control e. Frauds on Receivables f. Internal control Objectivity in the application of audit procedures in the audit of cash. Lecture-Discussion Question and answer Assigned readings Problem solving Books Illustrative/ Demonstration Problems Exercises Recitation Quizzes Homework Board Work 2nd 3rd Listed down week the cash audit procedures.

Explain clearly the audit program and objectives of the audit of investments.

Insight into the audit of investments.

Lecture-Discussion Question and answer Assigned readings Problem solving

Books Illustrative/ Demonstration Problems Exercises

Recitation Quizzes Homework Board Work

4th week

Explained clearly the audit program and objectives of the audit of investments.

Cite the audit procedures applied to receivables.

Integrity and reliability in the application of relevant GAAS in the audit of receivables.

Lecture-Discussion Question and answer Assigned readings Problem solving

Books Illustrative/ Demonstration Problems Exercises

Recitation Quizzes Homework Board Work

5th 6th Cited the audit week procedures applied to receivables.

Relate the audit objectives with the procedures performed in the audit of inventories and cost of sales.

Discuss the audit objectives with the procedures performed in the audit of inventories and cost of sales .

Explain the types and extent of audit procedures and techniques performed in the audit of intangible assets.

questionnaire g. Summary of GAAP V. Audit of Inventories and Cost of Sales a. Audit Objectives b. Audit procedures c. Audit Program d. Internal Control e. Frauds on Inventories f. Internal control questionnaire VI. Audit of Property, Plant and Equipment a. Audit Objectives b. Audit Procedures c. Audit Program d. Internal Control e. Frauds on property, plant and equipment f. Internal control questionnaire VII. Audit of intangible Assets a. Audit Objectives b. Audit Procedures c. Audit program d. Internal Control e. Frauds on Intangible assets f. Internal Control Questionnaire MID-TERM EXAMINATION

Faithful adherence to the technical standards in the audit of inventories and cost of sales.

Lecture-Discussion Question and answer Assigned readings Problem solving

Books Illustrative/ Demonstration Problems Exercises

Recitation Quizzes Homework Board Work

7th week Related the audit objectives with the procedures performed in the audit of inventories and cost of sales. 8th week Discussed the audit objectives with the procedures performed in the audit of inventories and cost of sales Explained the types and extent of audit procedures and techniques performed in the audit of intangible assets.

Lecture-Discussion Question and answer Assigned readings Problem solving

Books Illustrative/ Demonstration Problems Exercises

Recitation Quizzes Homework Board Work

Appreciation of the technical standards in the audit of intangibles.

Lecture-Discussion Question and answer Assigned readings Problem solving

Books Illustrative/ Demonstration Problems Exercises

Recitation Quizzes Homework Board Work

9th week

Demonstrate clearly audit procedures liabilities.

VIII. Audit of liabilities a. Audit objectives the b. Audit Procedures Objectivity in the for c. Audit Program application of d. Internal Control audit procedures. e. Frauds on Liabilities f. Internal control questionnaire

Lecture-Discussion Question and answer Assigned readings Problem solving

Books Illustrative/ Demonstration Problems Exercises

Recitation Quizzes Homework Board Work

10th week

Demonstrated clearly the audit procedures for liabilities

Explain the types and extent of audit procedures and techniques performed in the audit of intangible assets.

IX. Audit of Owners Equity a. Audit objectives b. Audit procedures c. Audit Program d. Internal Control e. Frauds on owners equity f. Internal control questionnaire X. Completing the Audit Explain intelligently the a. Steps in concluding the steps in concluding the audit fieldwork audit fieldwork. b. Clients representation letter c. Adjustments for prepaid and deferred charges d. Internal control memorandum XI. Audit Reports Prepare audit reports based a. Audit reports defined on the results of the audit. b. Standard short form c. Standard unqualified audit report d. Qualified Opinion e. Adverse Opinion f. Disclaimer of opinion g. Performance of part of work by another auditor h. Reports on comparative statements i. Comparative financial COMMUNITY SERVICE statements illustrated INTEGRATION Discuss the principles and standards of audit as it affects the interest of the community in the reliability of the financial statements. Financial Audit

Lecture-Discussion Question and answer Assigned readings Problem solving Appreciation of the audit process. Lecture-Discussion Question and answer Assigned readings Problem solving Enthusiasm in performing the audit procedures and completing Lecture-Discussion the working Question and answer papers. Assigned readings Problem solving

Books Illustrative/ Demonstration Problems Exercises

Recitation Quizzes Homework Board Work

11 week

th

Books Illustrative/ Demonstration Problems Exercises

Recitation Quizzes Homework Board Work

12th 16th week

Explained the types and extent of audit procedures and techniques performed in the audit of intangible assets. Explained intelligently the steps in concluding the audit fieldwork.

Books Illustrative/ Demonstration Problems Exercises

Recitation Quizzes Homework Board Work

Prepared audit 17th 18th reports based week on the results of the audit.

Objectivity Independence in mental attitude in the public practice of accounting

Audit procedures Audit programs and other audit techniques peculiar to industry under consideration

Audit papers

working

Review done

work

Discussed the principles and standards of audit as it affects the interest of the community in the reliability of the financial statements

FINAL EXAMINATION

VIII.

Grading Systems MIDTERMS CLASS STANDING QUIZZES MIDTERM EXAM 30% 30% 40% FINALS CLASS STANDING QUIZZES FINAL EXAM 30% 30% 40%

MIDTERM GRADE 100% FINAL GRADE IX. Course Policies: : MIDTERM

PRE-FINAL GRADE 100% 50% + PRE-FINAL GRADE 50% = 100%

Policies on attendance and academic dishonesty are found in the Student Handbook. In case of missed examination and assignments, the student is given the chance to make-up within a week from the day he/she reported, otherwise, it will be equivalent to 50%. X. Reference Books: Sangcal, Zenaida, Auditing Practice Cabrera, Elenita, Auditing Problems (Latest Edition)