University of Alberta School of Business

AOIS
ACCOUNTING 456: ASSURANCE ON FINANCIAL INFORMATION
COURSE OUTLINE
Course Webpage on ULearn
Instructor:
Erin Marshall, CA
Winter 2013, Lec B1, B2
Office:
BUS 2-33
Class Time: TR 11-12:20pm & 2-3:20pm
Office Hours: By Appointment
E-mail: emarshal@ualberta.ca

Course Description and Objectives

The primary objective of this course is to introduce students to the principles of auditing and
assurance services. The course is designed to provide students with an understanding of the need
for audit services, the objectives of the audit and the planning and execution of the audit to meet
these objectives. The course also aims to provide students with an understanding of the
complete audit process, including the assessment of risk associated with the clients business and
financial statement components. Auditing theory links audit fieldwork to specific objectives
(audit assertions), which translates to appropriate collection and evaluation of evidence.
Throughout the course, emphasis will be placed on developing critical and practical thinking
skills necessary for competency in the area of audit.
Please note that this course is not designed to teach students how to audit and as a result, auditing
procedures will not be performed and audit/accounting software will not be used.
Course Materials
1.

Auditing: A Practical Approach, Canadian Edition. By Robyn Moroney, Fiona Campbell, Jane
Hamilton and Valerie Warren. John Wiley & Sons Canada, 2012.
a. The textbook is a useful guide for students wanting or needing a more in depth
understanding of the materials presented in class or for students who learn by completing
problems.
b. Use of the textbook is STRONGLY RECOMMENDED in the following circumstances:
i. The student has no audit or accounting related work experience
ii. The student is aware of certain classes that will be missed during the semester
iii. The student would like additional details on controls, control testing and substantive
procedures as the student will be required to spend time on these concepts outside of
class.
iv. The student in general, learns by reading numerous examples.

2.

Students are responsible for all assigned readings, including materials presented in lectures, class
discussions, assignments, presentations, etc. Slides from lectures will be posted to the course
website but should not be viewed as a substitute for the material dealt with in class.

Academic Honesty and Integrity

The University of Alberta is committed to the highest standards of academic integrity and
honesty. Students are expected to be familiar with these standards regarding academic honesty
and to uphold the policies of the University in this respect. Students are particularly urged to
familiarize themselves with the provisions of the Code of Student Behaviour (online at
www.ualberta.ca/secretariat/appeals.htm) and avoid any behaviour that could potentially result in
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suspicions of cheating, plagiarism, misrepresentation of facts and/or participation in an offence.

Academic dishonesty is a serious offence and can result in expulsion from the University.
Method of Evaluation
In-class participation/professionalism

10%

In-class assignments (5)

15%

Midterm examination

20%

Case analysis

20%

Final exam

35%

Total

100%

Active participation is critical to success in this course and in a business environment.

Participation will be assessed based on the students participation in class discussion. Ample
opportunity will be given for everyone to participate. Those who make little effort to participate,
absent themselves regularly or engage in otherwise unprofessional behaviour in class can expect
the participation component of the grade to be impacted accordingly.
The in-class assignments can be submitted individually or in pairs. The course schedule
indicates the dates of the in-class assignments. Five exercises from the textbook or other sources
will be assigned and submitted in-class throughout the term. Your mark for this component of
the total grade will be based on your performance on all five assignments. If you miss a class
assignment for a valid reason (e.g., permission obtained prior to class) the 3 % for the
missed assignment will be added to your final exam grade. To receive credit for missed
assignments you MUST inform the instructor of your absence the day before or the day of
the assignment. Assignments will only be remarked in the case of a marking error or other
extenuating circumstances. Any issues with grading must be raised by the class following the
class in which the assignments were returned.
The case and requirements will be posted on the course website by the date of the midterm. The
case analysis MUST be done in groups of two or three. Individual submissions will not be
accepted. You must not consult any of your other classmates or anyone else. Consulting others
will be considered an act of academic dishonesty. The case is due at the start of your registered
class (11:00am or 2pm) on Thursday March 28, 2013. Penalties for late submission will be
assessed as follows: between 11:00 a.m/2:00pm on March 28 and before 11:00 a.m/2:00pm on
March 29 = 15%; between 11:00 a.m. and 4:00pm on March 29 = 50% (no cases will be
accepted after this time). All hand in assignments must be hard copy no e-mails or electronic
submission of assignments. Case analyses submitted outside of class time should be submitted
via the course drop box on the 3rd floor of the business building.
Preparation and participation
A list of the suggested problems from the textbook can be found in this course outline. You should
also respond to the multiple choice questions at the end of each chapter. There will be opportunity
for you to raise questions on textbook material in class, and time permitting, selected problems will
be taken up in class.
Throughout the semester there will be class discussions, presentations, assignments, etc. that may
contribute to questions on the midterm and/or final exam. Regular attendance, advance preparation
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for classes, and active participation in group discussions are essential to good performance on the
midterm and final. Although I understand that unexpected circumstances arise, I will not be
providing summaries of class discussions nor will I be posting my version of the notes. If you miss
a class, it is your responsibility to get the notes from someone else who did attend.
Blanks in notes: There are certain portions of the notes that include blanks or questions. These are
intended to stimulate participation and are included in the notes to guide your studying. If you miss
some of the blanks, you may email me with what you believe to be the correct responses and I will
provide you with feedback.
Electronic communication protocol: It is preferred that you post questions on course material on the
discussion board on ULearn. Should you wish to contact me via e-mail, you must include the
course number, your name and student ID number in the subject line. If I feel that questions posed
through e-mail or during office hours apply to all students taking the course, I will post them, along
with my response, on the course website.
Examinations
There are two examinations scheduled in this course. The midterm examination is on Tuesday,
February 12, 2013 and is worth 20% of your overall grade. The final examination, worth 35% of
your mark, will be held on a date to be determined by the university. The midterm exam will be 80
minutes (during regular class time) and the final exam will be 3 hours in duration. Both of the
exams are closed-book. The final exam will place more weight on material not tested in the midterm; however, you must also have sound knowledge of the material covered in the first part of
the course. Both exams will involve multiple choice, true and false, short answer questions and
open ended questions.
A sample midterm and final exam will be made available on the course website to aid in preparation
for examinations.
Make-up midterms will not be granted. Documentation will be required in the case of illness or
other extenuating circumstances, and the marks allocated to the midterm will be moved to the final
exam. Permission to defer final exams must be granted by the students undergraduate office1.
Deferred final exams need to be written by June 30th, 2013. All students deferring must rewrite the
exam on the same date at the same time. Deferred exams are tentatively scheduled for Friday May
10th at 9am.
In the case of a dispute over a midterm mark, students must provide, within 7 days of the
midterm being returned, a detailed written explanation about why they believe they deserve a
higher mark. Upon receiving this information, I reserve the right to remark the entire exam, not
just the question(s) in dispute. The new grade, whether higher, lower or the same as the original,
will be the final official grade on the midterm.
Grading
At the end of the term, marks will be aggregated according to the weights indicated above, and
then converted to a letter grade using the University of Albertas letter grading system. Final
grades in this course will be based on each students relative standing within the class, as well as
his/her overall achievement.
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Policies about deferral of exams can be found in Section 23.5.6 of the University Calendar.
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COURSE SCHEDULE
Date
Jan 8

Readings

Introduction

Course Outline
& Introduction

Recommended
Problems 2

Audit and Assurance Services &

Introduction to the Auditors Report

Chapter 1

Review: 1.1, 1.7,

1.9,
Prof. App: 1.5*,
1.6, 1.8, 1.9

The Auditors Report

Chapter 1

Prof App: 1.1,

1.12*, 1.14*

Jan 17

Audit Evidence: Financial

Statement Cycles & Audit
Assertions

Chapter 5.1

Prof App: 5.1*

Jan 22

Management Assertions and

Overview of the Audit Process

Chapter 3.1

Review: 3.2

Audit Evidence

Chapter 5
(except 5.1
covered Sept 18)

Review: 5.2, 5.3,

5.9
Prof. App: 5.2,
5.3, 5.11*, 5.14*

Jan 29

Audit Evidence Contd

Chapter 5
(except 5.1
covered Sept 18)

Review: 5.2, 5.3,

5.9
Prof. App: 5.2,
5.3, 5.11*, 5.14*

Jan 31

Materiality

Chapter 4.2

Review: 4.2, 4.3

Prof App: 4.5, 4.6

Jan 10

Jan 15

Jan 24

Feb 5

Audit Risk

Chapter 4.1

Review: 4.9*
Prof App: 4.2, 4.3,
4.4,

Feb 7

Audit Risk Contd

Chapter 4.1

In Class Problems

Feb 12

Feb 14

Topic

Deliverables

In-class
assignment #1

In-class
assignment #2

In-class
assignment #3

MIDTERM EXAMINATION (20%) Ch.1, Ch. 3.1, Ch. 4.1, 4.2, Ch. 5

Ethics and
Legal Liability

Chapter 2

Review: 2.2, 2.10

Prof App: 2.3,
2.4*, 2.7, 2.11,
2.12

Feb 19 &
Feb 21

NO CLASSES: READING WEEK

Feb 26

Chapter 3
(except 3.1, 3.4)

Audit Planning

Review: 3.3, 3.4, 3.5,

3.7*, 3.9
Prof App: 3.3, 3.4, 3.6,
3.14

Assigned Problems: problems with an asterisk (*) will be discussed in class if time permits.
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Feb 28

Audit Planning Contd

Chapter 4
(except 4.1, 4.2)

March 5

Overall Audit Plan

Chapter 6.1, 6.2

March 7

Overall Audit Plan Contd

Chapter 6.1, 6.2

March 12

Internal Controls Part I

Chapter 7

March 14

Internal Controls Part II

Chapter 8

Substantive Testing

In Class Notes

March 26

Audit Sampling

Chapter 6.3, 6.5

to 6.9

March 28

Fraud

Class Notes Ch
3.4

April 2

See previous week

Review: 7.1, 7.5,
7.10
Prof App: 7.2, 7.6,
7.8*, 7.9
Review: 8.3, 8.5,
8.6, 8.9*
Prof App: 8.5, 8.9

Audit Plan & Controls Overflow

March 19
March 21

Review: 4.4*,
4.5*, 4.6, 4.7*,
4.8, 4.10
Prof App: 4.1, 4.7,
4.8, 4.10, 4.15
Review: 6.1, 6.3
Prof App: 6.1,
6.9, 6.10

Audit of Cash

April 4

Chapter 10

In-class
assignment #4

Review: 6.7, 6.8*,

6.10
Prof App: 6.4,
6.12
Cases Due
Review: 10.4*,
10.7, 10.8, 10.10*
Prof App: 10.1,
10.8, 10.14*

FLEX CLASS / REVIEW

April 9

Inventory Counts

Class Notes

April 11

Completing the Audit

Chapter 12

Review: 12.5
Prof App: 12.3,
12.6*

In-class
assignment #5