Contemporary Auditing I
Course Description
This course is the first in a two-part series that deals with auditing a company's financial reports, internal controls, and Electronic Data Processing (EDP) systems. Topics include auditing standards, evidence, audit planning and documentation, materiality and risk, internal control, statistical tools, and the overall audit plan and program.
Topics and Objectives
Auditing and Assurance
- Explain the nature and functions of auditing.
- Identify the organizations that affect the public accounting profession.
- Compare and contrast auditing, attestation, and assurance service standards.
- Describe the elements of Generally Accepted Auditing Standards.
- Explain the Sarbanes-Oxley Act and its application to audits.
Materiality, Audit Risk, and Evidence
- Explain the application of materiality, audit risk, and evidence to an audit.
- Explain how an auditor assesses an entity's business risks.
- Analyze the types and reliability of audit evidence.
Audit Planning and Internal Controls
- Determine the nature and scope of an engagement.
- Identify the components of internal control.
- Assess control risk.
- Analyze tests of controls.
- Formulate audit objectives based on financial statements and management assertions.
Statistical Tools for Auditing
- Explain the importance of sampling techniques in an audit.
- Perform sampling tests.
- Evaluate the results of an audit conducted through the use of statistical sampling.
- Justify the use of statistical and non-statistical sampling when conducting an audit.
Internal Controls and Information Technology
- Explain the effect of IT on internal controls.
- Identify computer-assisted audit techniques.