SORRELL COLLEGE OF BUSINESS
Prerequisites: ACT 3392.
2009-2010 Catalog: Auditing theory as contained in the official pronouncements with emphasis on professional ethics, audit engagement, internal
control, audit sampling, evidence gathering, business cycles and auditors’ reports.
On completion of the course, the student should be able to:
1. Demonstrate an understanding of essential audit standards, objectives, compliance, and substantive procedures.
2. Demonstrate an understanding of the professional guidance and issues related to the major facets of the attest function as it is performed by
independent, internal, and governmental auditors.
3. Demonstrate an understanding of the transaction cycles, revenue cycles, expenditure cycles, and cash balances.
4. Demonstrate an understanding of professional ethics as it relates to the activities of independent auditors.
To introduce students to the fundamental concepts of auditing.
Boynton, W. C., & Johnson, R. N. Modern auditing: Assurance services and the integrity of financial reporting (8th ed. or current). Hoboken, NJ:
AICPA (Current). Codification of statements on auditing standards. New York, NY: American Institute of Certified Public Accountants. Use the
AICPA web site when you need additional reading materials.
Mission & Vision Statements
Troy University Mission Statement: Troy University is a public institution comprised of a network of campuses
throughout Alabama and worldwide. International in scope, Troy University provides a variety of educational programs at
the undergraduate and graduate levels for a diverse student body in traditional, nontraditional and emerging electronic
formats. Academic programs are supported by a variety of student services which promote the welfare of the individual
student. Troy University's dedicated faculty and staff promote discovery and exploration of knowledge and its application
to life-long success through effective teaching, service, creative partnerships, scholarship and research.
SCOB Mission Statement: Through operations that span the State of Alabama, the United States, and the world, Sorrell
College of Business equips our students with the knowledge, skills, abilities and competencies to become organizational
and community leaders who make a difference in the global village and global economy. Through this endeavor, we serve
students, employers, faculty, and Troy University at large as well as the local and global communities.
SCOB Vision Statement: Sorrell College of Business will be the first choice for higher business education students in
their quest to succeed in a dynamic and global economy. Sorrell College of Business will create the model for 21st
century business education and community service.
School of Accountancy Mission Statement: The mission of the School of Accountancy is to advance the accounting
profession by providing quality accounting education to both undergraduate and graduate students, publishing quality
research and providing service to the professional community. We prepare students for successful careers with increasing
professional and managerial responsibility in public accounting as well as government and industry and prepare
undergraduate students for admission to graduate programs in accounting and business.
Instructor: Stan Lewis, DBA, CPA, CFE, CCEA
Office Location & Hours: McCartha Hall 201. Weekly you may contact me in person during the following
days and time periods: Monday – 9am – 2pm and Wednesday – 9am – 2pm. I'm
available by email at any time or by telephone during my office hours (US
Contact Information Telephone: 334-808-6164; 334-670-3136 (Administrative Assistant Ms. Patsy
Brown); and 334-670-3592 (FAX). Email: email@example.com
Class Location & Time: GAB 303, 2:00 to 3:30 p.m. MW
Exams: There are three exams for the course. The dates are provided in the Course
Schedule section (see below). Each exam will be closed book/closed notes and
will consist of multiple choice questions. You may use a calculator and/or an
English translation dictionary during the exam. You may not talk to other
students, look on other students exams and answer sheets, exchange
information, etc. during the exam.
Assignments: These assignments are provided to you in the Course Schedule section below.
Each assignment should be prepared in a style consistent with that used in your
undergraduate accounting and business courses and with expectations for
documentation that are found in the professional workplace.
Grading Methods: Exams- 60 points (60 percent) divided among the listed exams. Assignments
(which includes attendance, completion of the senior assessment exam and
class participation) – 40 points (40 percent). These assignment points are only
recorded at the conclusion of the course. Bonus Points/Extra Credit – Comes
only from one source - attendance, participation & assignments (includes usage
of any supplement). Your efforts are monitored throughout the course and bonus
points/extra credit is assigned on that basis only at the end of the course. A base
of sixteen weeks is used. The Total Percent possible is 100 percent (the
maximum percent that can be achieved is 100% by an individual). The Grading
Scale used is: 90%-100% A; 80%- 89% B; 70%- 79% C; 60%- 69% D; and
below 60% F
and Requirements: The student will be expected to: (a) punctually attend all scheduled lectures (class
periods). Students who arrive at class after roll call will be counted absent and (b)
be penalized on the assignment portion of your course grade including the bonus
points/extra credit component.
Disabilities Act (ADA): Any student whose disabilities fall within ADA must inform the instructor at the
beginning of the term of any special needs or equipment necessary to
accomplish the requirements for this course. Students who have or may be
dealing with a disability or learning difficulty should speak with the instructor and
contact the Office of Adaptive Needs Program at call 670-3221/3222. Various
accommodations are available through the Adaptive Needs Program.
Attendance Policy: Physical class meetings are part of this course; participation is expected and is
integral to any bonus points available in the course.
Make-up Work Policy: In general you do not make up exams or assignments. If there are exceptional
circumstances such as a hospitalization, an exception may be made at the
instructor’s discretion only.
Assignments - These are submitted each class period. If you are not in
attendance you cannot submit assignments. Attendance and submissions are
matched. A failure to take the senior assessment exam or to complete the exam
without your best effort will result in a one letter grade reduction of your course
Exams – Not made up. I will average your other exam scores for the
replacement of a missed exam less a 10% penalty. You may not use an average
of the first two exams for the final or third exam. You must take the final exam or
a grade of F will be recorded.
Incomplete Grade Policy: Any incomplete work at the end of the term will not be accepted unless the
student can provide acceptable and clear documentation prior to the last class
Cheating Policy: If you are caught cheating, you will get a course grade of "F." See Student
Handbook for the definition and university policy on cheating. Plagiarism is a
form of cheating as is copying another’s assignments.
Dates Activities & Assignments (Listed below)
Week 1 Chapter 1 – Auditing and the Public Accounting Profession-Integrity in Financial Reporting
Week 2 Chapter 2 -Auditors Responsibilities and Reports
Aug 17 & 19 Chapter 3 – Professional Ethics
Week 3 Chapter 4 – Auditor’s Legal Liability
Aug 24 & 26 Chapter 5 – Overview of the Financial Statement Audit
Week 4 Chapter 6 – Audit Evidence
Aug 31 & Sep 2 Chapter 7 – Accepting the Engagement and Planning the Audit
Week 5 Review Chapters 1-7
Week 6 Exam 1: Chapter 1 – 7
Sep 14 & 16 Chapter 8 – Materiality Decisions and Analytical Procedures
Week 7 Chapter 9 – Audit Risk, Including the Risk of Fraud
Sep 21 & 23 Chapter 10 – Understanding Internal Control
Week 8 Chapter 11 – Audit Procedures in Response to Assessed Risks: Tests of Controls
Sep 28 & 30 Chapter 12 – Auditing Procedures in Response to Assessed Risks: Substantive Tests
Week 9 Chapter 13 – Audit Sampling
Oct 5 & 7 Chapter 14 – Auditing the Revenue Cycle
Week 10 Review Chapters 8 – 14
Oct 12 & 14 Exam 2: Chapters 8 – 14
Week 11 Chapter 15 – Auditing the Expenditure Cycle
Oct 19 & 21
Week 12 Chapter 16 – Auditing the Production and Personnel Services Cycles
Oct 26 & 28 Chapter 17 – Auditing the Investing and Financing Cycles
Week 13 Chapter 18 – Auditing Investments and Cash Balances
Nov 2 & 4 Chapter 19 – Completing the Audit/Post-audit Responsibilities
Week 14 Chapter 20 – Attest and Assurance Services and Related Reports
Nov 9 & 11 Chapter 21 – Internal, Operational, and Governmental Auditing
Week 15 Review Chapter 15 – 21
Nov 16 & 18 Exam # 3 – Chapters 15 – 21
Week 16 Fall Break & Thanksgiving Day Holiday
Nov 23 & 25
Week 17 Bad Weather Day (if needed)
Week 18 Senior Assessment Exam (8-10 am)
1 1 – 20, page 37 and Professional Simulation on page 41.
2 2-8, page 55; 2-10, page 63; 2-21, page 81; and 2-24, page 94
3 3-30, page 138 and 3-33, page 140
4 4-2, page 154; 4-16, page 167; 4-17, page 167; and 4-21, page 174
5 5-3, page 201; 5-10, page 205; 5-13, page 209; 5-22, page 213; and 5-27, page 219
6 6-2, page 236; 6-3, page 236; 6-10, page 246; 6-13, page 250; and 6-17, page 261
7 7-2, page 282 and 7-15, page 302
8 8-1, page 323 and 8-10, page 335
9 9-8, page 372; 9-9, page 372; and 9-10, page 373
10 10-3, page 395; 10-10, page 418; 10-21, page 429; and 10-23, page 435
11 11-2, page 475
12 12-1, page 519 and 12-6, page 534
13 13-1, page 558 and 13-5, page 558
14 14-28, page 676
15 Professional Simulation, page 738
16 Professional Simulation, page 801
17 Professional Simulation, page 844
18 Professional Simulation, page 888
19 Professional Simulation, page 929
20 Professional Simulation, page 980