BUS 459 Auditing and Assurance

School of Business

BUS 459 Auditing and Assurance is a one-semester course examining the nature and function of auditing. Students will study various types of audits as well as the auditor's role in the decision-making process. The planning, accumulation, and interpretation of audit evidence, including a study of EDP systems, are major components of the course. Case studies requiring an examination of internal control, planning an audit, development of an audit program, and the preparation and completion of working papers, financial statements, and the auditor's report, are also part of this course.

Prerequisites: BUS 343 or BUS 340 with a minimum grade of 60%

Accessibility Services Notice

Students who would like an academic accommodation and who have a documented disability should contact Accessibility Services, if they have not already done so.

Transfer Agreements

Course to Course transfer – YesBlock Transfer – Yesbctransferguide.ca
Course Details
Total number of weeks15
Total Credits
Total Hours60
Typical hours per week breakdown
Lecture4

Learning Outcomes

Upon successful completion of this course, the learner will be able to:

  1. Differentiate between assurance services, attest services and audits
  2. Calculate audit materiality
  3. Define the components of the audit risk model and explain how the relationship between these components is an aid in determining quantity and types of audit evidence to be collected
  4. List the steps for planning an audit engagement, including a first audit
  5. Identify types and uses of audit evidence
  6. Identify the components of internal control and their influence in planning and performing an audit
  7. Describe the effects of information technology on the audit function
  8. Select a sampling plan for test of controls and substantive tests of account balances
  9. Apply the audit process to the cycles of: sales & collection, acquisition & payment, payroll & personnel, inventory & warehousing, capital acquisition & repayment, as well as cash balances
  10. Identify the components of audit process documentation, engagement, enquiry, and legal letters, and the auditor’s report
  11. Evaluate the legal liability related to an audit

Teaching and Learning Approach

Teaching focusses on developing the student as a new professional. In class time is primarily spent working on shared spreadsheets to develop both a clear understanding of managerial accounting concepts and the spreadsheet and communication skills required in the workforce. Students are expected to keep abreast of the technical concepts prior to class by reviewing the course notes. The technical will be assessed in weekly quizzes, and small technical lectures will be interspersed with the practical work in class.

Learning Resources

Required: Arens, A. A, Elder, R. J., Beasley, M. S., Hogan, C.E., & Jones, J. C. (2022). Auditing: The art and science of th assurance engagements. (Canadian 15 ed.) Toronto, ON: Pearson Canada Inc. Personal LapTop Computer Internet Service Web Camera Access to the CPA Handbook – CPA Standards and Guidance Collection via Selkirk College online Library catalogue; access also provided by a link in Moodle.

Detailed Course Content, Topics, and Sequence Covered

1. Ch. 1: Demand for Audit and Other Assurance Services Ch. 2: The Accounting Profession & Audit Quality 2. Ch. 3 - Legal Liability Ch. 4 - Professional Judgement & Ethics 3. Ch. 5 - Audit Responsibilities and Objectives Ch. 6 - Client Acceptance & Planning the Audit 4. Ch. 7 - Materiality and Risk Ch. 8 - Internal Control & Control Risk 5. Ch. 9 - Assessing Control Risk & Designing Tests of Controls Ch. 10 - Develop Risk Response: Audit Strategy & Audit programs 6. Review Chapters 1 - 10 7. Winter Study Break 8. Midterm week - Unit Test #3 9. Ch. 11 - Audit Sampling Concepts Ch. 12 - Audit the Revenue Cycle 10. Ch. 13 - Audit of the Acquisition & Payment Cycle Ch. 14 - Audit of the Inventory Cycle 11. Ch. 15 - Audit of the HR and Payroll Cycle Ch. 16 - Audit of Capital Acquisition Cycle 12. Ch. 17 - Audit of Cash Balances Ch. 18 - Completing the Audit 13. Ch. 19 - Audit Reports on F/S Ch. 20 - Other Assurance and Non-Assurance Services 14. Review for the Final Exam 15. FINAL EXAM Date and Time TBD

Assessment

TitleLearning OutcomesValue
Unit Tests (5 * 15% = 75%)1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 1175%
Final Exam1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 1125%
Total100%

Grading Table

Standard Academic and Career Programs Grading Table

Percentage Letter Grade GPA
90-100 A+ 4.33
85-89 A 4.00
80-84 A- 3.67
76-79 B+ 3.33
72-75 B 3.00
68-71 B- 2.67
64-67 C+ 2.33
60-63 C 2.00
55-59 C- 1.67
50-54 P 1.00
0-49 F 0.00
  DNW 0.00

See the Academic Calendar for General Information including how to withdraw from course(s) and other regulations.

Disclaimer

Information contained in this course outline is correct at the time of publication. Content of the course is revised on an ongoing basis to ensure relevance to changing educational, employment and market needs. The instructor will endeavor to provide notice of changes to students as soon as possible. The instructor reserves the right to add or delete material from courses.