INSTRUCTOR’S RESOURCE MANUAL Bartosz Amerski York University Joanne Jones York University
Auditing The Art and Science of Assurance Engagements Fifteenth Canadian Edition Alvin A. Arens Former PricewaterhouseCoopers Emeritus Professor, Michigan State University Randal J. Elder Syracuse University Mark S. Beasley North Carolina State University, Deloitte Professor of Enterprise Risk Management Chris E. Hogan Michigan State University Joanne C. Jones York University
Introduction: An overview of the instructor’s resource manual
Contents
An Overview of the Instructor’s Resource Manual Chapters
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1
The demand for audit and other assurance services
2
The public accounting profession and audit quality
3
Professional ethics and legal liability
4
Audit responsibilities and objectives
5
Audit evidence
6
Client acceptance, preliminary planning, and materiality
7
Risk assessment and inherent risk
8
Understanding the internal control system
9
Control risk assessment
10
Risk response: Audit strategy, overall approach, and audit program
11
Audit sampling concepts
12
Audit of the revenue cycle
13
Audit of the acquisition and payment cycle
14
Audit of the inventory and distribution cycle
15
Audit of the human resources and payroll cycle
16
Audit of cash and cash equivalents
17
Completing the audit
18
Audit reports on financial statements ..
Instructor's Resource Manual for Auditing, 15Ce, by Arens/Elder/Beasley/Hogan/Jones
19
Other audits, assurance engagements, and related services
20
Audit of the capital acquisition and repayment cycle
An Overview of the Instructor’s Resource Manual The purpose of the Instructor’s Resource Manual is to help you teach auditing courses more efficiently and, perhaps more importantly, to encourage student engagement. Naturally, we do not want to interfere with your present approach or imply that our suggestions are the only good alternatives. This resource manual has several parts:
An illustrative course outline for a traditional 12-week university introductory auditing course.
Some resources, from accounting education journals we have used for group and individual projects.
Some group and individual projects we and other instructors have used successfully.
Mapping the chapters to the CPA Competency Map’s Fundamental Assurance Concepts and Related Technical Competencies
Chapter-by-chapter suggestions for teaching the content in each chapter.
The suggestions for each chapter include the following:
Ideas we find useful in teaching introductory auditing. Discussion and practice questions we have found to be effective in facilitating student learning and keeping the class interesting. Additional teaching resources and videos to reinforce and integrate the learning objectives. A matrix illustrating how learning objectives correlate with chapter problem material. The matrix for each chapter is designed to provide a one-page summary of this information to assist you in assigning problem material.
The chapters are designed so that their arrangement and selection provide maximum flexibility in course design.
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Introduction: An overview of the instructor’s resource manual
Suggested Syllabi In this section, we provide a possible schedule for use in a one-semester universitylevel introductory-level audit course. We also provide suggested problem assignments that could easily be presented in your syllabus as well as the course evaluation scheme. Some of the questions we use for 4 individual graded assignments. You will note that we cover the three key cycles (revenue, acquisition and payment, and inventory and distribution) as well as cash. Some of you may wish to cover some of the other cycles as well. From chapters 18 and 19, which cover special reports and other assurance engagements, we only cover reviews and compilation engagements. The remaining material, we cover in our advanced auditing course. Following our suggested syllabi, we briefly overview other teaching materials that you might find helpful as you develop your plan for coverage of the course content.
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Instructor's Resource Manual for Auditing, 15Ce, by Arens/Elder/Beasley/Hogan/Jones
Organization of the Course (assumes two 1 ½ hour classes or one three-hour class per week) Week
Topics
Chapters
Practice or Discussion Questions
1
Introduction, audit and other assurance services The public accounting profession and audit quality
1 and 2
1-19, 1-28, 1-30, 2-25, 2-27, 2-28
2
Professional ethics and legal liability Audit responsibilities and objectives
3 and 4
3-32, 3-35, 3-39, 4-29, 4-31, 4-32
3
Audit evidence Client acceptance, planning, and materiality
5 and 6
5-36, 5-38, 5-39, 5-42 6-42, 6-43, 6-46, 6-47
4
Assessing the risk of material misstatement
5
Internal controls, COSO framework Assessing control risk and test of controls
6
7
8 and 9
7-28, 7-29
8-28, 8-31, 8-35, 9-27, 9-33, 9-37
Midterm
7
Audit strategy and program Sampling concepts
10 and 11
10-25, 10-30, 10-28, 11-29, 11-39
8
Audit of revenue cycle
12
12-42, 12-43, 12-48, 12-49, 12-52
9
Audit of acquisition and payment and inventory and distribution cycles
13 and 14
13-27, 13-34, 13-36, 14-27, 14-28, 14-31
10
Audit of cash and completing the audit
16 and 17
16-23, 16-25, 16-26, 17-26, 17-33, 17-35
11
Audit reporting
18
18-28, 18-32, 18-33, 18-34
Group Presentations
Group Risk Assessment Due
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