ACCT3000 Auditing Semester 1, 2016ctl.curtin.edu.au/teaching_learning_services/unit... · Assurance Standards. Auditing is a challenging unit and students should be mindful of the

Unit study package code: ACCT3000

Mode of study: Internal

Tuition pattern summary: Note: For any specific variations to this tuition pattern and for precise information refer to the Learning Activities section.

Lecture: 1 x 1.5 Hours Weekly Workshop: 1 x 1.5 Hours Weekly

This unit does not have a fieldwork component.

Credit Value: 25.0

Pre-requisite units: 305229 (v.0) Advanced Financial Accounting 260 or any previous version OR ACCT2006 (v.0) Corporate Accounting or any previous version

Co-requisite units: Nil

Anti-requisite units: Nil

Result type: Grade/Mark

Approved incidental fees: Information about approved incidental fees can be obtained from our website. Visit fees.curtin.edu.au/incidental_fees.cfm for details.

Unit coordinator: Title: DrName: Abhi SinghPhone: +61 8 9266 2382Email: [email protected]: Building: 407 - Room: 432Consultation times: Please Refer to Blackboard

Teaching Staff: Name: Abhi SinghPhone: +61 8 9266 2382Email: [email protected]: Building: 407 - Room: 432

Administrative contact: Name: Tracey CarlyonPhone: +618 9266 2870Email: [email protected]: Building: 407 - Room: 419

Learning Management System: Blackboard (lms.curtin.edu.au)

Unit Outline

ACCT3000 Auditing Semester 1, 2016

Curtin Business School (CBS)School of Accounting

ACCT3000 Auditing Bentley Campus 13 Feb 2016 School of Accounting, Curtin Business School (CBS)

Page: 1 of 12CRICOS Provider Code 00301J

The only authoritative version of this Unit Outline is to be found online in OASIS

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Acknowledgement of Country We respectfully acknowledge the Indigenous Elders, custodians, their descendants and kin of this land past and present.

Syllabus An overview of assurance and ethics, independence and corporate governance. Understanding of the company audit process including audit planning - the concepts of materiality and audit risk. The evaluation and testing of internal control systems and substantive audit testing of transactions and balances. The finalisation of the audit and audit reporting.

Introduction Welcome to Auditing for Semester 1, 2016! I hope that you find this a rewarding and interesting unit. The purpose of the unit is to introduce students to auditing, with the emphasis on practical auditing concepts, the auditor's decision-making processes and the appropriate audit procedures which auditors follow in different circumstances. The theme of the course is the external audit of reporting entities, from initial planning to final reporting in the context of a professional assurance environment.

We will begin the course by examining the audit process in an overview format and we will regularly return to this overview to identify the stage of the audit process we are examining. A significant part of this course is spent examining the audit planning process, which is the most important aspect of the audit. To this end, we will examine a number of examples during lectures and workshops that analyse financial statements and identify the key risk areas from the auditor’s perspective.

This is not very different from financial statement analysis studies you have completed in other areas of your degree. What is different is how we use this information in terms of the audit emphasis. Remember, auditors are not responsible for preparing the accounting information (i.e. the general purpose financial report). Their job is to audit the financial statements with a view to providing an audit opinion in accordance with Australian Auditing and Assurance Standards.

Auditing is a challenging unit and students should be mindful of the following points:

1.The purpose of the lecture notes (available on Blackboard) is to give guidance on the various topics covered in the course. As it is impossible to cover every aspect of a topic in such notes, it is essential that students acquaint themselves thoroughly with a topic by reading the relevant sections of the prescribed texts and other reference material prior to attending lectures.

2.The key to success in Auditing is PRACTICE . Students will be assisted in this process by considering workshop questions that ask for the application of auditing concepts. Students should set aside a minimum of ten hours per week to complete the readings, workshop practice questions, workshop assessment and to study sufficiently to achieve the required level of understanding and competence in the unit. Depending on your ability and academic background, you may need to devote more or less time to this unit than the hours shown. For example, ESL students may need to devote more time to reading and review tasks than the hours shown.

Curtin Business School (CBS) School of Accounting




Unit Learning Outcomes All graduates of Curtin University achieve a set of nine graduate attributes during their course of study. These tell an employer that, through your studies, you have acquired discipline knowledge and a range of other skills and attributes which employers say would be useful in a professional setting. Each unit in your course addresses the graduate attributes through a clearly identified set of learning outcomes. They form a vital part in the process referred to as assurance of learning. The learning outcomes tell you what you are expected to know, understand or be able to do in order to be successful in this unit. Each assessment for this unit is carefully designed to test your achievement of one or more of the unit learning outcomes. On successfully completing all of the assessments you will have achieved all of these learning outcomes.

Your course has been designed so that on graduating we can say you will have achieved all of Curtin's Graduate Attributes through the assurance of learning process in each unit.

Curtin's Graduate Attributes

On successful completion of this unit students can: Graduate Attributes addressed

1 Explain the regulatory and ethical framework in which auditors operate

2 Analyse financial information to identify key risk areas and their impact on the audit approach

3 Apply appropriate audit procedures to key risk areas

4 Prepare and justify an audit opinion for a given set of circumstances

Apply discipline knowledge Thinking skills (use analytical skills to solve problems)

Information skills (confidence to investigate new ideas)

Communication skills Technology skillsLearning how to learn (apply principles learnt to new situations) (confidence to tackle unfamiliar problems)

International perspective (value the perspectives of others)

Cultural understanding (value the perspectives of others)

Professional Skills (work independently and as a team) (plan own work)

Find out more about Curtin's Graduate attributes at the Office of Teaching & Learning website: ctl.curtin.edu.au





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Learning Activities The strategies used in this unit to facilitate your learning process include lectures, workshops, written assignments, a mid-semester examination, and an independent final examination.

Lectures

Each lecture will cover the material for the topic as detailed in the Program calender of this unit outline. In this unit, it is highly recommended that you come prepared to each lecture. By doing this, you can maximise the value of attending lectures and can contribute readily to discussions, if any, concerning objectives and content. In addition, your ability to both understand and demonstrate understanding of the material through any lecture activities (cooperatively or otherwise) will be significantly enhanced if you are adequately prepared. To assist you in achieving these objectives, you will be provided access to the lecture material (i.e. PowerPoint slides) the week before each lecture.

Workshops

The workshops provide students with an opportunity to improve their understanding and technical competence by completing a range of questions and problems related to each topic. In addition, workshop participation encourages the development of oral communication skills, teamwork and group skills, as well as problem solving and critical thinking skills. To this end, students are encouraged (and expected) to contribute and participate at the workshops. To get maximum benefit from the use of workshops, you should be prepared in advance for each workshop by having (a) analysed the topic in advance (b) completed the required readings (c) completed the set questions and problems (d) drafted a set of questions concerning problems encountered during reading of the topic and/or preparation for workshops.

In addition, one important aspect of using the workshops as a learning aid is the follow up. It really is in your best interests as soon as possible after the workshop to follow up on any aspects raised as a consequence of that workshop. You should ask yourself if you are satisfied that you have achieved the topic objectives. Were there any general issues that have not been addressed? Can you see how this topic relates to previous topics? Are there any technical or conceptual issues that are still causing you concern? Remember that what you get out of workshops is directly related to what you are willing to put into them by way of preparation and contribution. To assist you with this, the course material will keep closely to the required text.





Learning Resources Essential texts

The required textbook(s) for this unit are:

l Gay,R. and Simnett,R. (2012). Auditing & Assurance Services in Australia (5th Ed), McGraw Hill (ISBN:9780071013109).

(ISBN/ISSN: 9780071013109)

l CAANZ Auditing, Assurance and Ethics Handbook 2016: John Wiley & Sons (ISBN:9780730328735).

(ISBN/ISSN: 9780730328735)

Recommended texts

You do not have to purchase the following textbooks but you may like to refer to them.

l Moroney, R., Campbell, F., Hamilton, J. (2013). Auditing : A Practical Approach (2nd Ed), John Wiley & Sons (ISBN:9780730305606)

(ISBN/ISSN: 9780730305606)

l Leung, P., Coram, P., Cooper, B.J., Richardson, P. (2015). Modern Auditing & Assurance Services (6th Ed), Australia: John Wiley & Sons (ISBN:9781118615249).

(ISBN/ISSN: 9781118615249)

Other resources

This unit makes use of the Web-based learning resource, Blackboard. In Blackboard, you will find in electronic form:

l PowerPoint slides for each workshop lecture; l One practice/mock mid-semester and final examination paper, including suggested solutions and marking

guide. This will be made available on Blackboard two weeks prior to the respective examinations. l In “Announcements”, messages to you from time to time from the Unit Controller.





Assessment Assessment schedule

Detailed information on assessment tasks

1. At workshops, the tutor will discuss with students the theoretical and practical issues relating to the weekly workshop questions. As this subject is heavily dependent on judgment and decision making, students are encouraged to explore alternative approaches to the selected workshop problems. Students are required to prepare answers for the selected workshop questions before attending the weekly workshops and participate actively in discussions by asking questions and providing answers. This is important for their continued revision and preparation for the first asessment activity, the mid semester test and final examinations.

For the purposes of the first assessment activity that constitutes 20% of the total assessment marks, students shall hand in the answers to two separate set of assignment questions latest by 6pm on the following dates: 25/03/2016 and 20/05/2016. The two separate set of assignment questions to be handed in will only be made known to the students through Blackboard two weeks before each assignment is due. Assessment will be based on the criteria in the Assignment Marking Guide (AMG) that will be uploaded on Blackboard. The instructions for submission of the assignments will be announced on the Blackboard. The work you submit must be your own. Any plagiarism from other students’ work or from solutions circulating from ‘solutions manuals’ will result in an automatic zero score for the submission. Significant penalties are imposed where assignments are found to be plagiarised. The University policy on plagiarism and academic misconduct can be found on this webpage: http://student.curtin.edu.au/administration/responsibilities.cfm

2. A mid-semester exam will be completed by you on 09/04/2016 (Saturday) commencing at 10.00am. The mid-semester examination will be a restricted book examination (with the exception of the CAANZ Auditing, Assurance and Ethics Handbook 2016) of one hour and thirty minutes plus 10 minutes reading time and will cover all course materials from Chapters 1, 2, 3, 5 and 6. Please be at your respective venue by 9.30am. The details of the exam venue(s) are as follows:

The structure and format of the mid-semester exam is as follows: There will be 35 Multiple-Choice Questions worth 35 marks in total (i.e. one mark each) and one short-essay question worth 15 marks. This will then be scaled down to 30%.

3. The final examination will cover material from each of the topics in the unit. The examination will be a closed book examination (with the exception of the CAANZ Auditing, Assurance and Ethics Handbook 2016 – see additional information on page 7) and be of three hours and ten minutes duration. Information about the format and structure of the final examination will be posted on Blackboard during study week. Students will not be given individual information about the examination. Given the weighting of the assessment, students are strongly encouraged to prepare a study program as soon as possible. This will assist you in keeping abreast with the lecture and workshop workload as well as subsequently assist you with your revision.

Task Value % Date DueUnit Learning Outcome(s)

Assessed

1Case study assessment 20 percent Week: 4 & 12

Day: Friday Time: 18:00

1,2,3

2Mid-Semester Test 30 percent Week: 6

Day: Saturday Time: 10:00

1,2,3

3Final Exam 50 percent Week: 16 & 17

Day: TBA Time: TBA

2,3,4

Student Surname Begining With: Exam VenueA - N Elizabeth Jolley Lecture Theatre (210.101)O - T Norman Duffy Lecture Theatre (210.102)U - Z Tim Winton Lecture Theatre (213.101)





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The final examination will be held during the formal examination period. It is your responsibility to check the date and time of the final examination. University policy disallows information regarding the examination timetable to be given over the telephone and no final results are available prior to the Board of Examiners meeting held after the examination.

Pass requirements To pass this unit you must attempt all assessments and receive an overall grade of 5 or more and a mark greater than or equal to 50.

Fair assessment through moderation

Moderation describes a quality assurance process to ensure that assessments are appropriate to the learning outcomes, and that student work is evaluated consistently by assessors. Minimum standards for the moderation of assessment are described in the Assessment and Student Progression Manual, available from policies.curtin.edu.au/policies/teachingandlearning.cfm

Late assessment policy

This ensures that the requirements for submission of assignments and other work to be assessed are fair, transparent, equitable, and that penalties are consistently applied.

1. All assessments students are required to submit will have a due date and time specified on this Unit Outline. 2. Students will be penalised by a deduction of ten percent per calendar day for a late assessment submission

(eg a mark equivalent to 10% of the total allocated for the assessment will be deducted from the marked value for every day that the assessment is late). This means that an assessment worth 20 marks will have two marks deducted per calendar day late. Hence if it was handed in three calendar days late and given a mark of 16/20, the student would receive 10/20. An assessment more than seven calendar days overdue will not be marked and will receive a mark of 0.

Assessment extension

A student unable to complete an assessment task by/on the original published date/time (eg examinations, tests) or due date/time (eg assignments) must apply for an assessment extension using the Assessment Extension form (available from the Forms page at students.curtin.edu.au/administration/) as prescribed by the Academic Registrar. It is the responsibility of the student to demonstrate and provide evidence for exceptional circumstances beyond the student's control that prevent them from completing/submitting the assessment task.

The student will be expected to lodge the form and supporting documentation with the unit coordinator before the assessment date/time or due date/time. An application may be accepted up to five working days after the date or due date of the assessment task where the student is able to provide an acceptable explanation as to why he or she was not able to submit the application prior to the assessment date. An application for an assessment extension will not be accepted after the date of the Board of Examiners' meeting.

Deferred assessments

If your results show that you have been granted a deferred assessment you should immediately check your OASIS email for details.

Deferred examinations/tests will be held from 18/07/2016 to 29/07/2016 . Notification to students will be made after the Board of Examiners’ meeting via the Official Communications Channel (OCC) in OASIS.

Supplementary assessments

Supplementary assessments, if granted by the Board of Examiners, will have a due date or be held between 18/07/2016 and 29/07/2016 . Notification to students will be made after the Board of Examiners’ meeting via the Official Communications Channel (OCC) in OASIS.

It is the responsibility of students to be available to complete the requirements of a supplementary assessment. If





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http://students.curtin.edu.au/administration/

your results show that you have been granted a supplementary assessment you should immediately check your OASIS email for details.

Referencing style

The referencing style for this unit is Chicago.

More information can be found on this style from the Library web site: http://libguides.library.curtin.edu.au/referencing.

Copyright © Curtin University. The course material for this unit is provided to you for your own research and study only. It is subject to copyright. It is a copyright infringement to make this material available on third party websites.

Academic Integrity (including plagiarism and cheating) Any conduct by a student that is dishonest or unfair in connection with any academic work is considered to be academic misconduct. Plagiarism and cheating are serious offences that will be investigated and may result in penalties such as reduced or zero grades, annulled units or even termination from the course.

Plagiarism occurs when work or property of another person is presented as one's own, without appropriate acknowledgement or referencing. Submitting work which has been produced by someone else (e.g. allowing or contracting another person to do the work for which you claim authorship) is also plagiarism. Submitted work is subjected to a plagiarism detection process, which may include the use of text matching systems or interviews with students to determine authorship.

Cheating includes (but is not limited to) asking or paying someone to complete an assessment task for you or any use of unauthorised materials or assistance during an examination or test.

From Semester 1, 2016, all incoming coursework students are required to complete Curtin’s Academic Integrity Program (AIP). If a student does not pass the program by the end of their first study period of enrolment at Curtin, their marks will be withheld until they pass. More information about the AIP can be found at: https://academicintegrity.curtin.edu.au/students/AIP.cfm

Refer to the Academic Integrity tab in Blackboard or academicintegrity.curtin.edu.au for more information, including student guidelines for avoiding plagiarism.

Information and Communications Technology (ICT) Expectations Curtin students are expected to have reliable internet access in order to connect to OASIS email and learning systems such as Blackboard and Library Services.

You may also require a computer or mobile device for preparing and submitting your work.

For general ICT assistance, in the first instance please contact OASIS Student Support: oasisapps.curtin.edu.au/help/general/support.cfm

For specific assistance with any of the items listed below, please contact The Learning Centre: life.curtin.edu.au/learning-support/learning_centre.htm

l Using Blackboard, the I Drive and Back-Up files l Introduction to PowerPoint, Word and Excel





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https://academicintegrity.curtin.edu.au/students/AIP.cfm

http://academicintegrity.curtin.edu.au/

https://oasisapps.curtin.edu.au/help/general/support.cfm

http://life.curtin.edu.au/learning-support/learning_centre.htm

Additional information Other information on Mid Semester and Final Exam

Students will be allowed to take only their CAANZ Auditing, Assurance and Ethics Handbook 2016 into the exam venue. The handbook may be underlined, highlighted and tagged. The title and number of both the Auditing Standard and its respective sections can be written on the tags. The Handbook cannot be written in nor can it include notes or additional sheets. Students in breach of this rule will have their handbook removed and shall be subject to the university’s policy on cheating. Students who choose to use borrowed handbooks/used handbooks have the responsibility for ensuring that their handbook does not breach the requirements above.

Remember to bring your Curtin Student ID card to all examinations and place it on the desk in front of you. You will not be allowed to complete the examination without your ID card.

The Curtin School of Accounting Facebook page will also contain much information that may be of use to you, including careers information. Please sign up if you are on Facebook and join in the community!

http://www.facebook.com/CurtinAccounting

The information here is available through other channels, but it is all here for ease of access.

Enrolment:

It is your responsibility to ensure that your enrolment is correct - you can check your enrolment through the eStudent option on OASIS, where you can also print an Enrolment Advice.

Enrolment

It is your responsibility to ensure that your enrolment is correct - you can check your enrolment through the eStudent option on OASIS, where you can also print an Enrolment Advice.

Student Rights and Responsibilities It is the responsibility of every student to be aware of all relevant legislation, policies and procedures relating to their rights and responsibilities as a student. These include:

l the Student Charter l the University's Guiding Ethical Principles l the University's policy and statements on plagiarism and academic integrity l copyright principles and responsibilities l the University's policies on appropriate use of software and computer facilities

Information on all these things is available through the University's "Student Rights and Responsibilities" website at: students.curtin.edu.au/rights.

Student Equity There are a number of factors that might disadvantage some students from participating in their studies or assessments to the best of their ability, under standard conditions. These factors may include a disability or medical condition (e.g. mental illness, chronic illness, physical or sensory disability, learning disability), significant family responsibilities, pregnancy, religious practices, living in a remote location or another reason. If you believe you may be unfairly disadvantaged on these or other grounds please contact Student Equity at [email protected] or go to http://eesj.curtin.edu.au/student_equity/index.cfm for more information

You can also contact Counselling and Disability services: http://www.disability.curtin.edu.au or the Multi-faith services: http://life.curtin.edu.au/health-and-wellbeing/about_multifaith_services.htm for further information.

It is important to note that the staff of the university may not be able to meet your needs if they are not informed of your individual circumstances so please get in touch with the appropriate service if you require assistance. For general wellbeing concerns or advice please contact Curtin's Student Wellbeing Advisory Service at: http://life.curtin.edu.au/health-and-wellbeing/student_wellbeing_service.htm





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http://students.curtin.edu.au/rights/

mailto:[email protected]

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http://www.disability.curtin.edu.au/

http://life.curtin.edu.au/health-and-wellbeing/about_multifaith_services.htm

http://life.curtin.edu.au/health-and-wellbeing/student_wellbeing_service.htm

Recent unit changes Students are encouraged to provide unit feedback through eVALUate, Curtin's online student feedback system. For more information about eVALUate, please refer to evaluate.curtin.edu.au/info/.

Recent changes to this unit include:

We welcome feedback as one way to keep improving this unit. Students are encouraged to provide unit feedback through eVALUate, Curtin's online student feedback system (see evaluate.curtin.edu.au/info/). Recent changes to this unit include: 1. Improved iLecture functionality. 2. A text customised to the Auditing unit. 3. Inclusion of two individual written assessments addressing the attributes of disciplinary knowledge and ethical reasoning.

See evaluate.curtin.edu.au to find out when you can eVALUate this unit.

To view previous student feedback about this unit, search for the Unit Summary Report at https://evaluate.curtin.edu.au/student/unit_search.cfm. See https://evaluate.curtin.edu.au/info/dates.cfm to find out when you can eVALUate this unit.





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Program calendar Lecture topics and workshop questions are selected from the required text. Australian Auditing Standards (ASAs) and the Code of Ethics for Professional Accountants (APES 110) are located in the CAANZ Auditing, Assurance and Ethics Handbook 2015.

Week Week Beginning Lecture Topic/s Essential Readings Workshop Questions

1 29/02/2016 Assurance and auditing: an overview (Chapter 1)

The structure of the profession (Chapter 2)

ASA 200, 220, 315 and 700

No questions to prepare but to attend workshop for unit familiarisation.

2 07/03/2016 Ethics, independence and corporate governance (Chapter 3)

ASA 102, 240 and APES 110

RQ 1.10, 1.16, 2.8, 2.9

DP 1.26, 1.38, 2.25

3 14/03/2016 Overview of elements of the financial report audit process (Chapter 5)

ASA 230, 330 and 500

RQ 3.14, 3.15, 3.16

DP 3.37, 3.38

4 21/03/2016 Planning, understanding the entity and evaluating business risk (Chapter 6)

Assignment 1 due by 25/03/2016 (Friday)

ASA 210, 220, 300, and 315

RQ 5.12, 5.13, 5.15

DP 5.24, 5.26, 5.34

5 28/03/2016 Tuition Free Week

6 04/04/2016 Assessing specific business risk and materiality (Chapter 7)

Mid Semester Exam on 09/04/2016 (Saturday)

ASA 320 and 570

RQ 6.12, 6.15

DP 6.26 , 6.30, 6.32

7 11/04/2016 Understanding and assessing internal control (Chapter 8)

ASA 315, 402 and 610

RQ 7.7, 7.13, 7.15

DP 7.19, 7.28

8 18/04/2016 Tuition Free Week

9 25/04/2016 Test of Controls (Chapter 9) ASA 330 RQ 8.11, 8.13

DP 8.20, 8.27, 8.29, 8.36

10 02/05/2016 Substantive tests of transactions and balances – cash, and sales accounts (Chapter 10)

ASA 500, 501, 505, 520 and 540

RQ 9.10, 9.11, 9.12

DP 9.21, 9.26

11 09/05/2016 Substantive tests of transactions and balances ASA 550 RQ 10.11, 10.13, 10.14





IMPORTANT: In order to assist you with developing a study plan, please note that, in terms of estimated work time per week, reading/lecture preparation requires an average of 3 hours, lecture/workshop attendance an average of 3 hours and completion of workshop questions and revision an average of 4 hours. This potentially requires you to allocate an average of 10 hours per week for Auditing 300. Depending on your ability and academic background, you may need to devote more or less time to this unit than the hours shown.

– purchases, inventories, accounts payable, payroll, non-current assets/liabilities, owners equity (Chapter 10)

DP 10.27, 10.28

12 16/05/2016 Completion and review (Chapter 12)

Assignment 2 due by 20/05/2016 (Friday)

ASA 560, 570 and 580

RQ 10.16,10.19, 10.21

DP 10.35, 10.38, 10.39

13 23/05/2016 Auditor’s reporting obligations (Chapter 13) ASA 450, 570, 700, 710 and 720

RQ 12.9, 12.17

DP 12.22, 12.24, 12.35

14 30/05/2016 Revision RQ 13.14, 13.18

DP 13.32, 13.33, 13.34

15 06/06/2016 Study Week

16 13/06/2016 Exam Week

17 20/06/2016 Exam Week





Documents

ACCT3000 Auditing Semester 1, 2016ctl.curtin.edu.au/teaching_learning_services/unit... · Assurance Standards. Auditing is a challenging unit and students should be mindful of the