| Course Name | Auditing and Assurance (Powered by PwC) |
| Code | Semester | Theory (hour/week) | Application/Lab (hour/week) | Local Credits | ECTS |
|---|---|---|---|---|---|
| ACC 307 | Fall/Spring | 3 | 0 | 3 | 6 |
| Prerequisites |
| ||||||||
| Course Language | English | ||||||||
| Course Type | Elective | ||||||||
| Course Level | First Cycle | ||||||||
| Mode of Delivery | - | ||||||||
| Teaching Methods and Techniques of the Course | DiscussionCase StudyQ&A | ||||||||
| Course Coordinator | |||||||||
| Course Lecturer(s) | |||||||||
| Assistant(s) | |||||||||
| Course Objectives | This is an introductory level auditing and assurance course which was designed specifically for those students who are planning to have a carrier in accounting, auditing, and other related areas. It provides students with an understanding of basic concepts and procedures of auditing and assurance according to international standards of auditing. Additionally, the course will address current auditing issues raised from misused professional judgments, misapplied code of professional ethics and self-regulation of the profession. (Course content is accredited by ACCA) |
| Learning Outcomes | The students who succeeded in this course;
|
| Course Description | This is an introductory course on auditing and assurance. The course covers fundamentals of auditing such as international developments and standards in the area, factors effecting audit market, potential services those rendered by auditors, stages of audit including accepting the engagement, understanding the entity, risk and materiality assessments, evaluation of internal controls, analytical procedures, substantive testing, selection of evidence, preparation of the audit report and communication. |
| Related Sustainable Development Goals | |
|
| Core Courses | |
| Major Area Courses | ||
| Supportive Courses | ||
| Media and Managment Skills Courses | ||
| Transferable Skill Courses |
| Week | Subjects | Required Materials |
| 1 | An Overview of International Auditing - Developments and Standards - Audit Defined, ISAs, Limitations of the Audit, Business Risks and Audit Risks, Risk in Financial Statements, Transactions, Account Balances and Disclosures, Types of Audits, Management Assertions and Audit Objectives, Standard Audit Process, International Audit Firms | Chapter 1 |
| 2 | The Audit Market - Demand and Supply, Audit Regulation, Audit Quality - Ethics for Professional Accountants - IFAC's code of ethics for accountants | Chapter 2-3 |
| 3 | Auditor Services - International Framework for Auditor Services, Elements of an Assurance Engagement, General Considerations in An Assurance Engagement, Audits and Reviews of Historical Financial Information, Assurance Engagements Other than Historical Financial Information | Chapter 4 |
| 4 | Client Acceptance - Evaluate the Client's Background, Ability to Meet Ethical and Specific Competence Requirements, Use of Other Professionals in the Audit, Communicating With the Predecessor (Existing) Auditor, Acceptance by the Client - The Engagement Proposal, The Audit Engagement Letter | Chapter 5 |
| 5 | Understanding the Entity, Risk Assessment and Materiality - Planning Phase of the Audit Process Model, Understanding the Entity and its Environment based on the Evidence, Assess Risk; Types of Risk, Planning Materiality | Chapter 6 |
| 6 | Internal Control and Control Risk - Internal Control Defined, The importance of Internal Control, Components of Internal Control, Control Environment, Risk Assessment, Information Systems, Communication and Related Business Processes, Control Activities (Control Procedures), Monitoring of Controls, Design of Internal Control | Chapter 7 |
| 7 | Control Risk, Audit Planning and Test of Controls - Understanding, Assessing and Testing Internal Controls, Understanding of Internal Controls and Documentation, Assessing Control Risk, Overall Responses to Assessed Risk, Prepare Planning Memorandum and Audit Plan, Tests of Controls | Chapter 8 |
| 8 | Midterm Exam | |
| 9 | Analytical Procedures - The Analytical Review Process, Formulating Expectations, General Analytical Procedures, Analytical Procedures During Different Phases in the Audit Process, Analytical Procedures as Substantive Tests, Follow-up in case of Unexpected Deviations | Chapter 9 |
| 10 | Substantive Testing and Evidence - The Basis of Evidence, Sufficient Appropriate Audit Evidence, Substantive Audit Procedures, Audit Procedures for Obtaining Audit Evidence | Chapter 10 |
| 11 | Audit Sampling and Other Selective Testing Procedures | Chapter 10 |
| 12 | Completing the Audit - Quality Control, Evaluate Governance Evidence, Review for Discovery of Subsequent Events, Review Financial Statements and Other Report Material, Wrap-up Procedures, Going Concern Issues, Matters for Attention of Parteners, Reports to The Board of Directors | Chapter 11 |
| 13 | Audit Documentation and Working Papers | Chapter 11 |
| 14 | Audit Reports and Communication - Basic Elements of the Auditor's Report, Types of Reports Expressing Audit Opinions, Matters that Do Not Affect the Auditor's Opinion (Modification of an Auditor's Report Containing an Unqualified Opinion), Circumstances That May Result in Other Than an Unqualified Opinion, Uncertainties Leading to Qualification of Opinions, Communications with those Charged with Governance | Chapter 12 |
| 15 | Corporate Governance | Chapter 14 |
| 16 | Review of the Semester |
| Course Notes/Textbooks | Principles of Auditing: An Introduction to International Standards on Auditing (2nd Edition), Hayes/Dassen/Schilder/Wallage, Prentice Hall, 2005 |
| Suggested Readings/Materials |
| Semester Activities | Number | Weigthing |
| Participation | 1 | 5 |
| Laboratory / Application | ||
| Field Work | ||
| Quizzes / Studio Critiques | ||
| Portfolio | ||
| Homework / Assignments | ||
| Presentation / Jury | ||
| Project | 1 | 25 |
| Seminar / Workshop | ||
| Oral Exam | ||
| Midterm | 1 | 30 |
| Final Exam | 1 | 40 |
| Total |
| Weighting of Semester Activities on the Final Grade | 3 | 60 |
| Weighting of End-of-Semester Activities on the Final Grade | 1 | 40 |
| Total |
| Semester Activities | Number | Duration (Hours) | Workload |
|---|---|---|---|
| Course Hours (Including exam week: 16 x total hours) | 16 | 3 | 48 |
| Laboratory / Application Hours (Including exam week: 16 x total hours) | 16 | ||
| Study Hours Out of Class | 14 | 3 | 42 |
| Field Work | |||
| Quizzes / Studio Critiques | |||
| Portfolio | |||
| Homework / Assignments | |||
| Presentation / Jury | |||
| Project | 1 | 20 | |
| Seminar / Workshop | |||
| Oral Exam | |||
| Midterms | 1 | 28 | |
| Final Exams | 1 | 30 | |
| Total | 168 |
| # | Program Competencies/Outcomes | * Contribution Level | ||||
1 | 2 | 3 | 4 | 5 | ||
| 1 | To be able to solve problems with an analytical and holistic viewpoint in the field of business administration. | |||||
| 2 | To be able to present the findings and solutions to the business problems in written and oral formats. | |||||
| 3 | To be able to interpret the application of business and economic concepts, and philosophies at the national and international levels. | X | ||||
| 4 | To be able to use innovative and creative approach for real-life business situations. | |||||
| 5 | To be able to demonstrate leadership skills in different business situations. | |||||
| 6 | To be able to interpret the reflections of new technologies and softwares to business dynamics. | X | ||||
| 7 | To be able to integrate knowledge gained in the five areas of business administration (marketing, production, management, accounting, and finance) through a strategic perspective. | X | ||||
| 8 | To be able to act in accordance with the scientific and ethical values in studies related to business administration. | X | ||||
| 9 | To be able to work efficiently and effectively as a team member. | |||||
| 10 | To be able to have an ethical perspective and social responsiveness when making and evaluating business decisions. | X | ||||
| 11 | To be able to collect data in the area of business administration and communicate with colleagues in a foreign language ("European Language Portfolio Global Scale", Level B1). | |||||
| 12 | To be able to speak a second foreign at a medium level of fluency efficiently. | |||||
| 13 | To be able to relate the knowledge accumulated throughout the human history to their field of expertise. | |||||
*1 Lowest, 2 Low, 3 Average, 4 High, 5 Highest
