Syllabus
INSTRUCTOR : M. Mete DOÄžANAY (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%
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WEEK
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TOPICS
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1
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An Overview of Auditing
- Accounting and auditing
- Nature of auditing
- Types of audits
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2
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Audit Standards
- General standards
- Standards of field work
- Standards of reporting
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3
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Audit Reports
- Standard unqualified audit report
- Format of audit report
- Conditions requiring a departure
- Audit reports other than unqualified report
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4-5
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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
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6-7
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Audit Evidence
- Nature of evidence
- Evidence decisions
- Reliability of evidence
- Types of audit evidence
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8
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1st Midterm Exam
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9
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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
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10
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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
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11
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Internal Control
- Purpose and importance of internal control
- Components of internal control
- Control activities
- Internal control in IT environment
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12
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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
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13
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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)
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14
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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
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