Applied External Audit
Curriculum guideline
Lecture and/or Seminar: 1 X 3 hours per week OR 2 X 2hrs per week
Lectures, seminars and case analysis. All methods of instruction apply to in class, hybrid and/or online modes of learning.
1. Revenue and collection cycle
2. Audit sampling and accounts receivable
3. Purchases, payables and payment cycle
4. The production, payroll, and finance and investment cycles
5. Inventory, property, plant and equipment; long-term debt; shareholders’ equity; revenues and expenses; and fraud
6. Completion of the audit and Auditor's Report
7. Special/Other engagements
At the end of the course, the successful student should be able to:
1. Document a client’s business processes, information systems and internal controls for specific accounting cycles;
2. Apply sampling methods for specified procedures using IDEA software;
3. Execute well-documented specific audit procedures (both compliance and substantive tests) in different audit cycles such as sales and collections, purchases and payments and others based on a simulated audit and using CaseWare;
4. Describe the elements of a high-quality audit working paper and the importance of documentation;
5. Evaluate audit evidence accumulated from the specified audit procedures to identify potential misstatements and draw appropriate conclusions, considering materiality;
6. Demonstrate understanding and use of the CPA Canada Handbook – Assurance requirements with respect to audit, reviews, and special reports as well as compilation:
- Explain how to gather evidence, and what level, depending on the type of engagement;
- Differentiate between the different reporting requirements for each type of engagement;
7. Explain Auditor's Report, and apply different types of opinion to specific situations;
8. Apply audit procedures relating to subsequent events and analyze reporting implications.
Evaluation will be carried out in accordance with the Douglas College Evaluation Policy.
| Assignments &/or Tests | 20% |
| Projects & Case analysis | 40% |
| Final examination | 40% |
| Total | 100% |
To pass this course, students must obtain a minimum of 50% on invigilated assessments, with the 50% calculated on a weighted average basis.
Invigilated assessments include, in-class quizzes, in-class tests, midterm exam(s) and the final exam.
Students may conduct research as part of their coursework in this class. Instructors for the course are responsible for ensuring that student research projects comply with College policies on ethical conduct for research involving humans, which can require obtaining Informed Consent from participants and getting the approval of the Douglas College Research Ethics Board prior to conducting the research.
Textbooks and Materials
Smieliauskas & Bewley, Auditing: An International Approach, latest Canadian edition. McGraw-Hill Ryerson, Toronto, or other textbooks as approved by the accounting department.
Access to CPA Canada Handbook – Assurance through Knotia will be provided.
Software required to be installed by students:
CaseWare Working Papers and CaseWare IDEA