- Auditing Concepts for a Changing Environment, 5th Edition, Rittenberg and Schweiger, The Dryden Press, 2003.
- AICPA Professional Stanadards, Commerce Clearing House (Volumes 1 and 2), June 1, 1997. (optional)
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The prerequisite for this course is Accounting 3010, Intermediate Financial Accounting II. This prerequisite must
have been completed prior to beginning this course. If you have not completed this prerequisite, you must drop this
course. You should see your advisor immediately. In the event that you do not voluntarily drop this course, you
will be administratively dropped.
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You are expected to adhere to the Honor Code. As a result, you should ensure that you understand what is
considered a violation of the honor code on each assignment.
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Letter grades for the course will be assigned based on the tpercentage of points you accumulate during the course,
based on the following possible points earned.
| MATERIAL |
Points
Available |
Points
Earned |
| Examinations |
200 |
|
| Final
Exam |
100 |
|
| Assignments |
125 |
|
| Mini-comps |
60 |
|
| Participation |
35 |
|
| Total |
550 |
|
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Examinations will consist of multiple choice and essay questions. They may cover all material assigned, whether
explicitly covered in class. Examinations must be taken at the time and place announced unless other acceptable
arrangements are made in advance with me.
Note: The final examination is scheduled for Tuesday, December 8 at 2:00 p.m.
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You will be required to complete a series of 5 individual and group assignments throughout the semester. Most of
these assignments require advance preparation, use of the Internet and considerable writing, so it is in your best
interest to anticipate upcoming due dates. Professional accountants are evaluated by the quality of their written
work (e.g. audit reports, management letters, financial statement notes). Logical organization, proper spelling,
punctuation and sentence structure are expected on all assignments.
Failure to turn in any assignment will result in a zero for the assignment and an additional 30 point (10%)
reduction to the points earned for the assignments you completed. The assignments, point distribution and due
dates are as follows:
Assignment #1 Audit Failures: Using the library's Business Source Premier (EBSCO Host), the Internet and other resources available
to you, research one of the following audit failures: Tyco, Adelphia, Waste Management or American Paper (you will need to let me know your choice as soon as possible. Write a paper
tjat describes the company, the corresponding fraud, and the resulting implications to the company. Your paper should be no longer that 10 pages, double-spaced..
Turn in a copy of your paper no later than Thursday, November 18th. This is an individual assignment worth 30 points.
Assignment #2Corporate Governance: Allegheny HEalth Care
This case involves topics that have been at the center of the SEC and standard setting group initiatives during the past several years. In particular,
the case focuses on the important role of Board of Directors in protecting the public interest. The case primarily addresses the competencies of decision making (DM), risk analysis (RA)
and research. The DM competency is stressed by you evaluating strengths and weaknesses related to the entity's organizational design and management style. The RA
competency is involved as you assess business risk related to excessively rapid expansion and poor acquisition decisions by management. The research component is involved as you locate and read
materials relevant to the role of Boards of Directors and Audit Committees.
Required: Questions 1-3 will be answered by Group 1. Questions 4-6 will be answered by Group 2. Questions 7-9 will be answered by Group 3.
You will submit your written answers to these questions to me and be prepared to discuss these questions in class on Tuesday, August 31.
This is a group assignment worth 30 points.
Assignment #3 Ethics in Accounting: Run, Inc.
The case emphasizes understanding and anticipating some of the complexitites that face senior accounting officers. In particular, the case discusses the discovery by a
recently hired controller of management's intentional misstatement of the financial statements of the last three years. The focus of the case is on the discussion of the practical difference
between a change in estimate and a correction of an error, and how difficult it is to implement that apparent benign accounting concept as well as the ethical implications of the proper handling of
misstatements. More importantly , the case illustrated complexities an accounting professional faces as he or she balances the requirements of the various codes of conduct against the human cost that may
follow compliance with the codes. The three top competencies addressed by the case include: Strategic/Critical Thinking, Interaction, and Professional Demeanor.
Required: Put yourself in the position of the conroller. The case presents several alterantive courses of action available to you. As a group, discuss the options and identify the best
possible alternative. Present your solution in writing, providing justification for choosing this solution over the others. Bring a copy of your paper to class on Thursday, September 2.
This is a group assignment worth 25 points.
Assignment #4 Fraud Examination: Heavy Metal Mayhem. This case gives you a chance to use what you have been learning and your intuitive skills to catch the crooks and uncover illegal financial practices. In
this case, the newly divorced wife of a top entertainer has sued her rocker ex-husband for allegedly hiding assets and underreporting revenues to avoid paying child support. You will help CPA and forensic accountant Clare McNally uncover the truth to the entertainer's financial affairs.
Required: Consider the four possible solutions to the case. As a group, discuss the options, and identify the best possible solution. Present your solution in writing, providing judstification
for choosing this solution over the others. Bring a copy of your paper to class on Tuesday, October 12. This is an group assignment worth 15 points.
Assignment #5 Revenue Recognition: Miniscribe
This case focuses on ethical issues facing a new accountant of Miniscribe, a real-world company in the late 1980's.
The three parts of this case provide you with a unique opportunity to confront problematic revenue recognition practices (part 1), to confront issues related to fraudulent
financial reporting (in part 2), and to see the consequences of the unethical practices (part 3). The three top competencies addressed by the case include: Professional demeanor (Personal Competency),
Measurement (Functional competency), and Reporting (Functional competency).
Required: Prepare written answers to questions 1 and 2 in Part I of the case. Be prepared to discuss the answers to other questions in the case. You will submit your
written answers to me and be prepared to discuss these questions in class on Thursday, October 21. This is a group assignment worth 25 points.
At the end of this semester, each group will participate in a 30-minute oral examination. Questions in this oral
examination may cover any material covered in Auditing or relevant financial accounting material.
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For the most part, this class will not be structured around lectures provided by me. Instead, you should come to
class prepared to discuss the readings and other assignments, and ready to ask any questions over items that are
unclear to you. I will monitor your class participation by noting such items as your attendance, initiative,
responsiveness and evidence of preparation.
Class participation can be earned in this class in two ways: (1) by speaking up in the class -- making thoughtful comments or asking questions (up to 75% of your participation
credit may be earned this way), and (2) by sharing with the class interesting fraud statistics, cases, thoughts, etc. (up to 25% of your participation credit may be earned this way). We will allow 10-15 minutes at the beginning
of each class for this sharing of fraud-related, current events, etc. that you have found on the Internet, in the Wall Street Journal, at your work of from other sources.
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I have attached a tentative schedule of class activities on the following pages. You are expected to have read the
assignment and attempted the suggested questions prior to arriving in class on the day they are assigned.
Please note that there are review and multiple choice questions provided at the end of each chapter. Most students
find these very helpful in reviewing these questions for class and the examinations.
The attached schedule is tentative and subject to revision at my discretion. You will be held responsible for any
revisions to the schedule.
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