Syllabus

INSTRUCTOR : M. Mete DOĞANAY (Ph.D)

TEXT : Arens, Alvin A. ve James K. Loebbecke, Auditing: An Integrated Approach, 8th or newer edition, Prentice Hall, International.

TIME AND PLACE : Monday, 0940-1230, B-307

COURSE DESCRIPTION : This course covers the subject of financial statements audit. Topics included are; accounting and auditing, types of audit, generally accepted auditing standards, audit reports, audit objectives, audit evidence, audit risk model, internal control, audit tests, and statistical audit techniques.

EXAMS :
Two midterm exams: 30% each.
Final exam : 40%
 

 

WEEK
TOPICS
 
 
1
An Overview of Auditing
 
- Accounting and auditing
- Nature of auditing
- Types of audits
 
 
 
2
Audit Standards
 
- General standards
- Standards of field work
- Standards of reporting
 
 
3
Audit Reports
 
- Standard unqualified audit report
- Format of audit report
- Conditions requiring a departure
- Audit reports other than unqualified report
 
 
4-5
Audit Objectives
 
- Financial statement cycles
- Setting audit objectives for accounts
- Distinction between general and specific audit objectives
- Transaction related audit objectives
- Balance related audit objectives
 
 
6-7
 
Audit Evidence
 
- Nature of evidence
- Evidence decisions
- Reliability of evidence
- Types of audit evidence
8
1st Midterm Exam
 
 
 
 
9
Materiality and Risk
 
- Materiality
- Preliminary judgment about materiality
- Audit risk model and planned detection risk
- Acceptable audit risk
- Factors affecting acceptable audit risk
- Inherent risks
- Factors affecting inherent risk
- Control risk
 
 
 
10
Audit Planning
 
- Audit committees of the publicly held corporations
- Selecting the audit firm
- Preplan
- Obtaining background information
- Obtaining information about the legal liabilities of the firm
- Preliminary analytical procedures
- Audit program
11
Internal Control
 
- Purpose and importance of internal control
- Components of internal control
- Control activities
- Internal control in IT environment
 
 
 
12
Audit Tests
 
- Obtaining an understanding of internal control
- Control tests and assessing the control risk
- Substantive tests of transactions
- Analytical procedures
- Substantive tests of detail of balances
 
 
13
Audit Sampling for Tests of Transactions and 2nd Midterm
 
- Statistical and nonstatistical sampling
- Attribute sampling
- 2nd midterm (on a different time other then the class session)
 
 
 
14
 
 
Audit Sampling for Tests of Details of Balances and completing the audit
 
- Monetary unit sampling
- Evaluating the test results and deciding an appropriate audit report