University Of California, Riverside

BUS 169A Auditing Professor Theodore J. Mock [TMock] tmock@ucr.edu Course Syllabus Winter Quarter 2012 Tues - Thurs 8:10A-9:30P INTN 1002
Real thinking begins when you dont know the answers - Tolstoy The provision of assurance services (including financial statement auditing) is a process that involves research, investigation, evidence gathering, risk assessment and evidential reasoning. Its objective is providing effective and economical assurance concerning financial information or other types of information of interest to business, government, or society in general. Types of information that may be audited include financial statements, environmental reports, carbon footprint reports, sustainability reports, and health or product quality reports. Because the term auditing often is used with respect to the auditing of financial statements, the more general term of assurance services is used to include the broad array of audit, attestation, and assurance services that are being provided world-wide. This course is an introduction to basic concepts and techniques that are used in the provision of assurance services. It focuses on one type of assurance service, the auditing of financial statements. The auditors role is to provide an independent, cost effective audit of financial or other information to insure that the information meets accepted standards such as being reliable and being a complete representation of the financial position and performance of an economic entity. BUS 169A is designed to provide an introductory framework for understanding how auditors plan and conduct an audit. In completing an audit, the audit team decides what to do, how much risk is appropriate and when to conclude the research, investigation, and evidence gathering processes. As will be seen, auditing and general assurance services are essential for efficient capital markets and to the success of many enterprises manufacturing, service, government, or not-for-profit organizations. The course objectives are embedded in the context of two learning themes: 1. Learn Audlish, that is the Vocabulary of the Auditing and Assurance Services Profession: Students will learn the basic terms, definitions, and concepts in the discipline of Auditing and Assurance Services. Auditing has its own language audit risk, substantive audit procedures, forensic procedures, accounting controls, financial statement fraud, materiality and many others. You will learn what these and other terms mean from an auditing and assurance services perspective and why some terms have a variety of meanings. 2. Develop Your Investigative, Evidential Reasoning, and Risk Assessment Skills in Assessing Risks, Designing Audit Programs, Collecting and Analyzing Audit Evidence, in Preparing Audit Opinions and in Communicating Audit Findings to Interested Parties: Students will have multiple opportunities for practice in developing these skills and obtaining feedback concerning these activities. These are selected to enhance students ability to prepare independent, useful and cost-effective reports and analyses that meet Professional Standards. This syllabus is an invitation to you as a student to engage in an interactive study of the core concepts of auditing and assurance services. It is my intention to provide a collaborative and supportive learning environment where students will learn both in and out of the classroom. To that end, modifications to this syllabus might be warranted as I assess and update the learning needs of this
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particular class.
BUS 169A Catalogue Description: BUS 169A. Auditing (4) Lecture, 3 hours; individual study, 3 hours. Prerequisite(s): BUS 165B. Covers the auditing environment, the auditors legal liability, audit responsibilities and objectives, audit evidence, audit planning and documentation, the auditors report, and management letters. Course Format and Learning Strategy

BUS 169A Auditing is a one quarter, four-credit course. Your regular class meetings will involve a variety of activities including lecture; in-class preparation and discussion of problems; clicker quizzes; and both individual and group presentations. This class is designed to be part of a two quarter sequence and is followed by BUS 169B. Whereas 169A focuses on basic concepts and theory, 169B focuses on applications of these concepts and theory in practice. Typical assignments and activities for each class session include: Background reading. Each chapter contains readings and references about auditing concepts and issues, including examples from the business and financial press illustrating these concepts and issues in real companies. Readings should be completed by the due date on the schedule. Assignments questions, problems and/or cases. You cannot learn auditing simply by reading; you need to grapple with the issues to really understand the concepts. Thus, you will be asked to complete a variety of assignments. While some assignments are reasonably straightforward, you can expect to struggle with some assignments, especially the cases. Attempting all assignments is important for the class discussions, clicker quizzes, BlackBoard quizzes and, most importantly, the final exam. Assignments should be attempted by the due date on the schedule. As most assignments are not collected, attempting an assignment means sketching a solution so that you are prepared to provide your answer in-class, as part of a clicker quiz or as part of a BlackBoard Quiz. Course Materials and Websites Required Text for BUS 169A is: Auditing, Assurance & Risk, [3e], Authors: Knechel, Salterio & Ballou, Publisher: Thomson/SouthWestern.[2007, edition 3e]. ISBN-10-0-324-31318-7 Textbook summary: Learn how to think like an auditor with AUDITING: ASSURANCE AND RISK! This text outlines the standards and practices of today's auditors and prepares you to perform the Integrated
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Audit. Written from a conceptual and global perspective, this text provides the tools you need to be successful in this course including examples, questions, problems, and cases for each chapter. UCR iLearn/Blackboard Website: http://ilearn.ucr.edu/webapps/login/

Required Technology: Each student must obtain and register a clicker The address for the clicker registration site is http://clickers.ucr.edu. You must register your clicker on this site in order to receive credit for using your clicker in class.

Performance Assessment (Course Grading) Your performance in BUS 169A will be evaluated based on in-class Clicker Quizzes, weekly Blackboard quizzes, graded group assignments; and ONE examination as shown below: Blackboard Quizzes Participation (attendance) and Clicker Quizzes Group activities including presentations and project reports: Group assignment peer evaluations Final examination Total 100 points 100 points 100 points 50 points 150 points 500 points 20% 20% 20% 10% 30% 100%

After each graded assignment is returned or quiz score posted, you will have one week to challenge your grade in writing. After this time, grades become final. Letter grades for the course are determined based on a curve with an average G.P.A. consistent with the School of Business Administration grading guidelines. Final letter grades will be determined based on individual student performance. iLearn Blackboard Quizzes [ 100 points]: Weekly quizzes will be posted on Blackboard and must be completed by 8:10 a.m. of the day they are assigned, usually Tuesdays [see Blackboard and class lecture notes for deadlines for each quiz]. They will focus on the assigned chapter reading for the week, homework assignments for the week that the quiz is given and assignments & in-class materials covered during prior classes. Additional details will be provided in class and on Blackboard. There will be no make-up or excused Blackboard quizzes; however your lowest quiz score will not be counted. Participation (Attendance) and in-class Clicker Quizzes [ 100 points]. Many classes will include one or more clicker quizzes that will be based on current readings, assignments, class discussions, etc. In the cases where the questions are based on assignments, if you have prepared a solution to the assignments, you should be able to respond to the quiz questions. These will track participation in classes and preparation of assigned problems as follows: The credits for each question will be 0 (no answer), 1 (incorrect answer) or 3 (correct answer). There will be no make-up or excused Clicker quizzes. It is your responsibility to insure you have a working clicker at each class. Graded group assignments [ 100 points]. Graded assignments involve both technical and judgment elements, therefore, the grading of these assignments have both objective and subjective components. This quarter there will be five graded group assignments, usually due on a Tuesday. Each group assignment will involve preparation and submission of a written report and a PowerPoint summary presentation. By random selection or volunteering, groups will be asked to present their solutions during class. Peer Evaluations (50 points). Your group's grade depends on each member's efforts. Fifty points (10% of the total course points) of your course grade will be based on your individual contribution to your group. A confidential peer evaluation will be solicited asking each member of your group to evaluate the contribution of other members to the group's efforts.
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Details about each group assignment will be provided during the course, usually including a posted GRADING TEMPLATE. However, the following general rules apply to all group assignments. All group reports must be legible, typed and of professional quality. A maximum length usually will be provided. Late group assignments will be accepted, but with a late penalty of 20% for each day the assignment is late. No exceptions. 4. An individual who does not contribute to the groups solution may be separated from the group for one assignment only at the request of either the individual or the remaining group members. The separated person may hand in one group assignment done as an individual at no penalty. Separation may be invoked due to unavoidable schedule conflicts or due to tension within the group, but it may be used only once during the quarter for any individual. 5. An individual may be divorced from the group by a written request to the instructor from all other group members. While divorce should be rare, it is justifiable if an individual is not carrying his or her load as a group member. The divorced individual can obtain credit for the remaining graded assignments only by doing them as an individual.
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Final Examination [ 150 points]. The final examination accounts for 30% of the course points. The primary content of this exam is from the course text, Clicker Quizzes, Blackboard quizzes, lectures and assignments including the group assignments. The exam will be a mix of multiple choice questions and short cases (short problems) more details about the format will be announced in class near the exam date. The final exam will be open book and open notes in that each student is allowed to bring the textbook and 2 pages of notes that they have prepared [to be turned in as part of the exam]. Should you have any questions about your exam grades, request an appointment to review your final exam in the first month of the following quarter. Make-up Final Exam Policy. It is to your advantage to take all quizzes and the final exam at their scheduled times. Only in the case of a well-documented, true emergency should the final exam be missed. All students must take the final exam as scheduled unless an incomplete contract has previously been approved according to School of Business regulations. A conflict with your travel plans is not sufficient reason for an incomplete or a request to take an exam at another time. Additional Course Information Office Hours: Regular: Tuesday and Thursday 9:30 - 10:30 at the HUB/Coffee Bean and 10:30 -12:00 in my Anderson Hall office. Also Friday mornings by appointment only. Office Location: AGSM, 209 Anderson Hall Office Phone: 951 827 2333 [If feasible, please use email as I check it much more often] Email: tmock@ucr.edu STATEMENT ON TECHNOLOGY USE Communication devices such as cell phones, Blackberries, etc. capable of sending and or receiving electronic communication and all entertainment devices such as iPods or other MP3 players are to be turned off and kept off throughout the class session. Receiving or sending communication or entertainment during class disrupts the learning environment and is rude to those around you. Laptops can be used only for the purpose of taking notes or to accomplish in-class assignments that require internet access. When you are permitted to use your laptop for note-taking purposes, Internet connections are usually prohibited unless otherwise stated by the professor. There will be no use of laptops or other communication devices during examinations.
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Students With Disabilities:

The mission of the UCR Services for Students with Disabilities is to assist in creating an accessible University environment where students with disabilities have equal access to educational programs and opportunity to participate fully in all aspects of campus life. Please contact
http://specialservices.ucr.edu/Students+with+Disabilities/Prospective.htm for additional information. Academic and Professional Integrity Ethics and values are very important in the auditing, accounting, in the business world, and in education. We will consider ethical issues in auditing throughout this course. As an instructor, I will assume, unless there is evidence to the contrary, that you are an ethical student. To help you fulfill your ethical responsibilities as a student, the ethical standards for BUS 169A are listed below. Graded group assignments: All work is to be performed exclusively by the members of the group and all group members must contribute their fair share to each assignment. If outside research is performed, sources are to be cited and information discovered via outside research is to be clearly referenced as such. The products of your research are not to be shared with any student who is not a member of the group. Final examination: The final exam must be the exclusive work of the individual student and no outside materials may be utilized without the prior approval of the instructor. No student may share the exam contents or possible solutions with another student during the exam. If you know that another student is violating these standards: Allowing another student to obtain course points by deceit contributes to a general lowering of the ethical standards of the University and contributes to deception of potential employers and other academic institutions. Thus, you have an obligation to take some action when you know another student is violating the course's academic integrity standards. This is a difficult personal trial to face, but it is an important part of your ethical obligation as a student. If you know that another student is violating the standards, it is your responsibility to inform the student's instructor. In this course, academic integrity violations generally will be penalized with a grade of F for the course. Drops and Adds Group assignments begin early in the course. Therefore, adds cannot be accepted after the first week of classes. Are you thinking about dropping the course? If so, be sure to note the drop dates published in the UCR Catalog. If you do decide to drop the course, please let your instructor and your group members know immediately. This is particularly important if you decide to drop during the first week of classes when groups are being formed for graded assignments.

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Important Dates --- WINTER 2012

First Day of Bus 169A Class Last day to Withdraw from a course ($4 fee). Last day to Change grading basis ($4 fee). 169A Instruction Ends Final Exam Jan. 10, 2012 Feb. 17, 2012 March 2, 2012 March 15, 2012 March 17, 2012 11:30-2:30

SoBA Mission Statement

Our mission is to develop diverse leaders, propel research-based innovation and promote the sustainable growth of Inland Southern California within the global economy. We harness the powerful resources of UC and our location at the nexus of commerce to create a laboratory for education, research, and productive partnerships across economic enterprises. The strategic activities that propel our mission include: Conducting basic and applied research in management that explores and informs the creation, development and management of growth; Providing degree programs that prepare our students to be effective managers and responsible community leaders with a deep understanding of the dynamics of growth in both a regional and global context; Partnering with business and community leaders through a shared commitment to exemplary growth; and Delivering educational programs to executives and the public at large that respond to the needs of our local, state, national, and international communities.

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