Standard

Posted: 06/16/05

ACC 120 – Principles of Auditing

Course Description

Introduces the student to the auditor’s responsibilities in the areas of professional standards, reports, ethics and legal liability. Students learn about the technology of auditing; evidence gathering, audit/assurance processes, internal controls, and sampling techniques. The specific methods of auditing the revenue/receipts process, disbursement cycle, personnel and payroll procedures, asset changes, and debt and equity are learned. Finally procedures related to attest engagements and internal auditing are reviewed.  

Competency Areas	Hours
Auditor responsibilities	Class	5
The technologies of auditing	D. Lab	0
Audit methods	P. Lab/O.B.I.	0
Attest engagements/internal auditing procedures	Credit	5

Prerequisite:	ACC 103
Corequisite:

Course Guide

Competency	After completing this section, the student will:	Hours
		Class	D.Lab	P.Lab/ O.B.I.

AUDITOR RESPONSIBILITIES		5	0	0
Professional Standards	Define the professional standards
Ethics	Relate Ethics to the Audit
Reports	Understand the various reports
Legal Responsibilities	Know what the law requires of auditors
TECHNOLOGIES OF AUDITING		20	0	0
Evidence Gathering	Understand how to gather evidence
Audit/Assurance Processes	Know audit/assurance methods
Internal Controls	Understand the importance of internal controls to audit testing
Sampling Techniques	Become aware of acceptable sampling techniques
AUDITING METHODS		20	0	0
Revenue/receipts process	Understand the audit techniques involved
Disbursement cycle	Use proper audit techniques
Personnel and Payroll procedures	Perform the audit using proper methods
Asset Changes	Understand how to verify asset values
Debt/Equity Values	Be able to verify values using proper techniques
ATTEST ENGAGEMENTS/INTERNAL AUDITING ACTIVITY		5	0	0
Attest Engagement	Be able to understand the difference between an attest review and an audit
Internal Audit	Understand the duties/responsibilities of internal audit staff

Suggested Resources

Books

Ricchiute, David N., (2003) Auditing and Assurance Services, Seventh Edition, Mason, Ohio: South Western College Publishing.

Messier, Jr., William F., (1997) Auditing, First Edition, New York: McGraw Hill.

Arens, Loebbecke, Auditing, Eighth Edition, Saddle River, New York: Prentice Hall.