AUDITING

Unit Guide

Trimester 2 2019
 ACC302 – AUDITING

TRIMESTER 2 2019

About Auditing (ACC302)

CONTACTS
Pham Thi Ngoc Bich
Unit Instructor
Ptnbich@ueh.edu.vn
Huong Nguyen
Program 17 Pham Ngoc Thach Street, District 3, HCM City
Administrator Email:
Phone: 08 54465555 (Ex: 124)
maihuong.nguyen@isb.edu.vn

UNIT OVERVIEW

The unit provides an introduction to and overview of auditing concepts and procedures.
Emphasis is placed on underlying concepts and procedures applicable to an audit of a
business’s financial statements performed by independent certified public accountants. The
unit deals with both theoretical and practical aspects of auditing. It aims to integrate the
concepts of auditing with practical approaches taken by auditor to ensure students gain a
complete picture of audit process.

PRE-REQUISITES

None

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Assessment Information

UNIT LEARNING OUTCOMES

The table below outlines the unit learning outcomes (ULOs) for this unit. Upon completion
of this unit, students will be able to:

Understand the role, limitations and demand for financial statement audits in modern
1.
corporate society

2. Discuss ethical dilemmas in auditing as well as legal liabilities of an auditor

Demonstrate an understanding of the major phases of a financial statement audit process
3.
from client acceptance/continuance to issuance of auditors’ report

4. Consider the effectiveness of the client’s internal controls over financial reporting in an audit

5. Identify and apply properly audit procedures to obtain sufficient appropriate audit evidence

6. Apply the understanding of audit process in audit of sales and property, plant & equipment
Identify different types of auditors’ reports and describe the circumstances under which each
7.
is appropriate
Apply critical thinking, problem solving and presentation skills to individual and/or group
8.
activities dealing with auditing and assurance issues

PROGRAM LEARNING OUTCOMES

In line with its focus on assuring students’ skills in unit learning outcomes 1-7 above, this
unit is also responsible for introducing/developing/assuring the following program-level
learning outcomes (PLOs):

Knowledge & Application

1. Solid understanding and competency of appropriate application of business discipline-
specific knowledge.

Communication
2. Competency in professional written and oral communication suited to multiple audiences
and contexts.
Teamwork
3. Effective collaboration in teamwork or other tasks in organizational settings.

Critical thinking
4. Critical thinking through appropriate observing, analyzing and reasoning, etc.

Problem solving
5.
Effective and constructive problem solving.

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Ethics
6. An ethical perspective, including an understanding of the ethical responsibilities of
organizations.
Cultural Diversity
A global mindset, including an understanding of the different business settings, the ability to
7.
identify foreign market potentials, to diagnose cross-cultural communication problems and
propose appropriate solutions.

ASSESSMENT SUMMARY

VALUE
ASSESSMENT ITEM DUE DATE LEARNING OUTCOMES
(%)

Homework, Class participation

1. 15% ULO1-10
and quiz (Individual and group)
2. Mid-term exam (individual) Session 12 20% ULO1-6
Session
3. Group project 15% ULO1-10
14,15
4. Final exam (individual) TBA 50% ULO1-10

Final marks and grades are subject to confirmation by the School Assessment Committees
which may scale, modify or otherwise amend the marks and grades for the unit, as may be
required by University policies.
 Note: To successfully complete this unit, students must:
 Achieve a minimum of 50 marks;
 Complete all assessment items; and
 Attend 80 per cent of class time. See attendance requirements in the section of class
policies and rules below.

Assessment 1: Homework, Quizzes and Class

Participation (Individual and Group) (15%)
Due: Ongoing throughout the duration of the course except for the session 10, 11, 14 and
15.
 Homework: Assigned on page 8, which are submitted for every class session and
due within the first 15 minutes of each class session. They would be individual or
group homework (3 students per group).
 Quizzes: A multiple Choice Quiz (5 questions) given at the beginning of each
session
 Class participation: regularly attending class (not just for filling a seat) and asking
and answering useful questions which further contribute to the subjects discussed
in each session. To this end, it is strongly recommended, that participants do

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indeed read the assigned chapters BEFORE class, so that questions may be asked
and good discussions take place. Students should make an effort to contribute
useful information on regular occasions.

Marking criteria and standards

Two homework assignments will be marked randomly. All class quizzes will be self -
marked. Class participation will be graded on 4-point scale from 0 (lowest) through 4
(highest) below

Grade
Criteria

0 Absent

 Present, not disruptive.

1  Tries to respond when called on but does not offer much
 Demonstrates very infrequent involvement in discussion.

 Demonstrates adequate preparation: know basic care or reading facts, but does not
show evidence of trying to interpret or analyze them.
 Offers straightforward information (e.g., straight from the case or reading), without
elaboration or very infrequently (perhaps once a class).
 Does not offer to contribute to discussion, but contributes to a moderate degree when
2 called on.
 Demonstrates sporadic involvement

 Demonstrates good preparation: know case or reading facts well, has thought through
implications of them.
 Offers interpretations and analysis of case material (more than just facts) to class.
 Contribute well to discussion in an ongoing way: responds to other students’ points,
thinks through own points, questions others in a constructive way, offers and supports
3 suggestions that may be counter to the majority opinion.
 Demonstrate consistent ongoing involvement.

 Demonstrate excellent preparation: has analyzed case exceptionally well, relating it to

readings and other material (e.g., readings, course material, discussions, experiences,
etc.).
 Offers analysis, synthesis, and evaluation of case material, e.g., puts together pieces of
the discussion to develop new approaches that take the class further.
 Contribute in a very significant way to ongoing discussion: keeps analysis focused,
responds very thoughtfully to the students’ comments, contributes to the cooperative
argument-building, suggests alternative ways of approaching material and helps class
4 analyze which approaches are appropriate, etc.
 Demonstrate ongoing very active involvement.

Assessment 2: Mid-term exam (Individual) (20%)

Due: Session 10 (first 50mns of the session)
Length: 50 minutes

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 The mid-term exam covers materials from the session 1 to the session 9. This is a
closed-book exam, which will include the multiple-choice questions of 100%
Marking criteria and standards
The exam contains 50 multiple-choice questions (0.2 marks/each)

Assessment 3: Group project (15%)

Due: Session 14 and 15.
Length: around 2,000 words for academic essay (excluding the table of content,
references, and appendixes) and 15 minutes for presentation

 Analysis and discussion on the topics related to “malpractice” of auditing profession

such as the auditor’s violation of professional ethics, a lawsuit against the auditor or
any audit failure occurred around the world.
 Students are randomly allocated into groups of 6 and work together to choose the
“malpractice” case, search for materials related to the case chose, analyze them,
write up the report and prepare the group presentation.

Marking criteria and standards

Group Report submitted electronically via E-learning system and in hard copies to the
lecturer. Group Report accounts for 70 marks and Presentation accounts for 30 marks.
Total is 100 marks.
Group Report includes an introduction to illustrating the report’s objectives and structure,
an overview of the case, an analysis of the case in terms of the auditor’s professional
ethics, legal liabilities or audit failures, possible causes of such situation, recommendations,
and a conclusion.

Assessment 4: Final exam (Individual) (50%)

Due: TBA
Length: 120 minutes

 The closed-book final exam with 2 parts: multiple choice questions and problems.
30 Multiple Choice questions which will cover all materials from the session 10 to
15, and three Problem Solving Questions which will cover all materials from the
session 1 to 15.
Marking criteria and standards
The multiple choice questions worth 3 marks. The three problem solving questions account
for 7 marks. Total is 10 marks. Messier

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Teaching Activities
LEARNING RESOURCES
Textbook  Messier, Glover, Prawitt, (2016), Auditing & Assurance Services (10 th ed.) Boston:
McGraw Hill Irwin. [MGP(2016)] Whittington O.R., & Pany K. (2016). Principles of
auditing & other assurance services (20th ed.). McGraw-Hill International Edition.
Reference  Whittington O.R., & Pany K. (2016). Principles of auditing & other assurance services
(20th ed.). McGraw-Hill International Edition.
Reading  Arens A.A, Elder R.J., Beasley M.S., & Hogan C.E. (2016). Auditing & assurance
services: An integrated approach (16th ed.). Pearson.
 COSO (2013). Internal control – Integrated Framework
 ISA 200 – Overall Objectives of the Independent Auditor and the Conduct of an Audit
in Accordance with International Standards on Auditing
 ISA 240 – The Auditor’s Responsibilities Relating to Fraud in an Audit of Financial
Statements
 ISA 300 – Planning an Audit of Financial Statements
 ISA 315 – Identifying and Assessing the Risks of Material Misstatement through
Understanding the Entity and Its Environment
 ISA 320 – Materiality in Planning and Performing an Audit
 ISA 330 – The Auditor’s Responses to Assessed Risks
 ISA 450 – Evaluation of Misstatements Identified during the Audit
 ISA 500 – Audit Evidence
 ISA 700 – Forming an Opinion and Reporting on Financial Statements
 ISA 705 – Modifications to the Opinion in the Independent Auditor’s Report
 ISA 706 – Emphasis of Matter Paragraphs and Other Matter Paragraphs in the
Independent Auditor’s Report

ONLINE LEARNING RESOURCES

E-library http://search.proquest.com/login
Username: UEHCMC2010
Password: thuvien0810
https://www.coso.org/
https://www.iaasb.org/
http://elearning.isb.edu.vn/ Introduction to Assurance and Financial Statement
E-learning
Auditing

SCHEDULE OF ACTIVITIES

Session PROGRAM SCHEDULE WEEKLY READINGS & ACTIVITIES

Introduction to Assurance and Required readings: Chapter 1&2- MGP(2016)

1
Financial Statement Auditing Individual Homework: 1-24, 2-24

Required readings: Chapter 19- MGP(2016)

2 Professional Ethics
Individual Homework: 19-28

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Session PROGRAM SCHEDULE WEEKLY READINGS & ACTIVITIES

Required readings: Chapter 20- MGP(2016)

3 Legal Liability Individual Homework: 20-29

Audit Planning, Types of Audit Required readings: Chapter 3- MGP(2016)

4
Tests, and Materiality Individual Homework: 3-31

Internal Control in a Financial Required readings: Chapter 6- MGP(2016)

5 Individual Homework: 6-1 and 6-2
Statement Audit

Internal Control in a Financial Required readings: Chapter 6- MGP(2016)

6 Individual Homework: 6-33
Statement Audit (cont.)

Risk Assessment and Auditors’ Required readings: Chapter 4- MGP(2016)

7 Individual Homework: 4-27
Response

Risk Assessment and Auditors’ Required readings: Chapter 4- MGP(2016)

8 Individual Homework: 4-24 and 4-25
Response (cont.)

Audit Evidence and Required readings: Chapter 5- MGP(2016)

9 Documentation Individual Homework: 5-32, 5-33 and 5-39

Review chapter 1, 2, 3, 4, 5, 6, 19 and 20 –

Mid-Term Exam (the first
50mns) Review chapter 1, 2, 3, MPG(2016)
4, 5, 6, 19 and 20 – MPG(2016)
Required readings: Chapter 17- MGP(2016)
Group Homework: Materials are posted in e-
10
Audit of Property, Plant & learning
Equipment (PP&E): Simulation
(Guest Speaker: Mr. Cheah You
Ming – Audit Director of Deloitte)
Required readings: Chapter 10- MGP(2016)
Audit of Sales: Simulation
Group Homework: Materials are posted in e-
11 (Guest Speaker: Mr. Cheah You learning
Ming – Audit Director of Deloitte)

Required readings: Chapter 17- MGP(2016)

12 Completing the audit
Individual Homework: 17-25, 17-29

Required readings: Chapter 18- MGP(2016)

13 Auditors’ Reports Individual Homework: 18-31, 18-22

Group Presentation is ready before the 14th

14 Group Project Presentation
session starts

Group Project Presentation

15 Group Report is due by the 15th session.
(cont.) Revision for Final Exam

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Session PROGRAM SCHEDULE WEEKLY READINGS & ACTIVITIES

Revision for Final Exam All reading materials required for this course

16 Final Exam All reading materials required for this course

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General Information & Policy

Referencing
Plagiarism
Student assignments are to contain original content created by the students. Assignments
will be rejected if they include plagiarized content or contain excessive amounts of
quoted/cited material and minimal original content. Students will receive a grade of ZERO
(0%) for any assignments rejected for this reason. Written assignments WILL BE checked
by the lecturer with Turnitin.com, an online plagiarism-checking tool.
Sources
Furthermore, your reference to support your statements must be from a reliable source,
such as textbooks, additional reading materials, and reference books. However, many
websites are not reliable sources. Examples are Wikipedia.org, about.com, and ask.com. If
you are not sure if a reference is acceptable or not, please contact the lecturer.
Referencing & Citation
The Publication Manual of the American Psychological Association (APA) 6th ed., will
serve as the primary reference materials for all students. Therefore, all papers must be
submitted in APA format. The mechanics of student papers and work will be evaluated, as
well as the content.

Submission
Assignment cover sheet
 All assignments are required to be submitted with an Assignment Cover Sheet.
 Group assignments are to be submitted with a Group Assignment Cover Sheet as
well as a Peer Evaluation Form depending on the request of unit instructor.
Non-contributing team members can sometimes be an issue with group-work structured
assessment. Individual student group work scores may be adjusted as a result of peer
dissatisfaction with a particular student’s contribution to group work assignments, as
reflected in submissions of the evaluation form.
Note:
 Assignment cover sheets and the evaluation form can be located on MyISB system
 Students are advised to keep a copy of all assignments submitted for marking.

Submission style
Assignments are expected to achieve a professional standard:
 Be typed, one and a half spaced, on A4 paper
 Use a simple clear format, suitable for a report to senior management in a commercial
organisation.

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Submission method
Soft copy: submitted electronically via E-learning system by 11:55 PM on the due date
(Suggested title: Student name_Unitname_Name of Assignment).
Hard copy: submitted to ISB Submission Box at the Reception Area (17 Pham Ngoc
Thach) by the due date.

Late assignment and make-up policy

No late assignments will be accepted unless prior authorization granted by the Academic
Department based on a Special Consideration Application for assessment task extension.
Students must complete all assessments on the assigned dates including quizzes, mid-
term test, and final exam. If there are extenuating or unforeseen circumstances, students
must follow the school’s policies and procedures accordingly.

Attendance
Students are required to attend a minimum of 80% of all classes (which normally 12/15
sessions).
Other cases equating to an absence:
 Arriving to class late by 15 minutes at the beginning,
 Arriving late by 5 minutes after the break
 Leaving prior to the scheduled end time without the permission of the lecturer
If you are unable to attend any session, please let your lecturer know AND submit a
request for absence form to program administrator prior to the session.

 IMPORTANT: Students will not be allowed to sit in the final examination if violating the
above absence rule.

Electronic device use

 Cell phones will be turned off or switched to vibrate mode before class starts.
 No phone calls or text messaging are allowed inside classroom during class time.
 Portable listening and/or music devices may not be operated in the classroom.
 Headphones and/or ear buds of any type may not be worn while in the classroom
whether operating or not.
 Laptop and other electronic devices are not permitted unless specifically
authorised by the lecturer exclusively for note taking and doing class work.

 IMPORTANT: If you are in violation of these policies you will be excused from class
and an absence will be assessed.

Email etiquette
Your lecturers receive many emails each day. In order to enable them to respond to your
emails appropriately and in a timely fashion, students are asked to follow basic
requirements of professional communication.

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Your emails should:

 Have a concise and descriptive title, including the class and name of the unit you
are enquiring about
 Be clear about the intention of their emails
 Use appropriate tone and language, proof-read what is written in the email before
sending it.
Students should also allow 3-4 working days for a response before following up. If the
matter is legitimately urgent, you may indicate “URGENT” in the email subject header.
Make an appointment: If your email request is complex and requires a lengthy response it
may be probably best to make an appointment with your lecturer/instructor to meet in
person.

Student behaviour guidelines

Everyone must behave professionally. Students are expected to demonstrate respect for
teacher and fellow students at all times. Behaviour that is disruptive to a positive learning
environment reported to the teacher will result in a warning on the first instance; the
second instance might result in a failing grade along with expulsion from the school.
Unacceptable behaviors can be:
 Cheating on an exam
 Collaborating with others on work to be presented, if contrary to the stated rules of
the course
 Submitting, if contrary to the rules of the course, work previously submitted in
another course
 Knowingly and intentionally assisting another student in any of the above actions,
including assistance in an arrangement whereby work, classroom performance,
examination, or other activity is submitted or performed by a person other than the
student under whose name the work is submitted or performed
 Plagiarizing

 IMPORTANT:
 First violation will result in a grade ZERO (0%) for that assignment.
 Second violation will result in a failing course grade.

Disability support services

Students with disabilities are advised that accommodations and services are available at
UEH-ISB. It is the student's responsibility to contact UEH-ISB office and submit appropriate
documentation prior to receiving such services.

Additional information
This unit guide may be revised at the discretion of the Academic Department with approval
from Program Academic Director and School Academic Committee where appropriate.

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Chap 4: https://www.brainscape.com/flashcards/chapter-4-6282680/packs/9786251

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