Main Content
Syllabus
ACCTG 403: Auditing
Financial statement, regulatory and contract compliance, internal and operational audits, professional standards and ethical conduct; statistical and judgmental sampling; the audit-impact of information technology; audit risk and internal control structure evaluation; application of procedures in transaction cycles; audit reporting; professional issues.
Prerequisites: ACCTG 371 or ACCTG 471
Overview | Objectives | Materials | Technical Requirements | Course Requirements and Grading | Course Schedule | Academic Integrity | Policies
Overview
This course seeks to provide students with a general understanding of the nature of the auditing as process and profession. Adherence to professional standards and ethical conduct combined with the use of general audit techniques represent the competencies the accounting professional must cultivate. Additionally, the auditor must able to integrate one's other business knowledge into the audit process. These competencies are applicable to every audit engagement. Independence, the ability to exercise unbiased, professional judgment, analytical skills, professional skepticism, and critical thought processes are examples of professional competences. Statistical and judgmental sampling; the audit-impact of information technology; audit risk and internal control structure evaluation are examples of the general techniques.
Auditing is a team sport.
Course Objectives
- Understand auditing as a profession:
- Define legal and ethical issues facing the auditor.
- Describe and apply Generally Accepted Auditing Standards (GAAS) throughout the audit process.
- Identify the appropriate audit report based on audit findings.
- Evaluate auditing as a process:
- Identify the auditor’s responsibilities and objectives.
- Recognize and describe the significance of the Internal Control structure to financial statements, audit planning, audit risk and the detection of fraud.
- Analyze the purpose of collecting and evaluating sufficient amounts of evidentiary material that support the auditor’s conclusions.
- Issue a conclusion of the audit.
Required Course Materials
Most World Campus courses require that students purchase materials (e.g., textbooks, specific software, etc.). To learn about how to order materials, please see the Course Materials page. You should check LionPATH approximately 3–4 weeks before the course begins for a list of required materials.
E-Book Option: An online version of one or more of your texts is available at no cost as a Penn State Library E-Book. Some E-Books will only be available online, while others will be available to download in full or in part. You may choose to use the E-Book as an alternative to purchasing a physical copy of the text. You can access the E-Book by selecting the Library Resources link on the course navigation, and then selecting the E-Reserves link. For questions or issues, you can contact the University Libraries Reserve Help (UL-RESERVESHELP@LISTS.PSU.EDU).
This course requires that you access Penn State library materials specifically reserved for this course. You can access these materials by selecting Library Resources in your course navigation, or by accessing the Library E-Reserves Search and search for your instructor's last name.
Many of the University Libraries resources can be utilized from a distance. Through the Libraries website, you can
- access magazine, journal, and newspaper articles online using library databases;
- borrow materials and have them delivered to your doorstep—or even your desktop;
- get research help via email, chat, or phone using the Ask a Librarian service; and
- much more.
You must have an active Penn State Access Account to take full advantage of the Libraries' resources and service. The Off-Campus Users page has additional information about these free services.
Technical Requirements
| Operating System | Canvas, Penn State's Learning Management System (LMS), supports most recent versions of Microsoft Windows and Apple Mac operating systems. To determine if your operating system is supported, please review Canvas' computer specifications. |
|---|---|
| Browser | Canvas supports the last two versions of every major browser release. It is highly recommended that you update to the newest version of whatever browser you are using. Note: Cookies must be enabled, and pop-up blockers should be configured to permit new windows from Penn State websites. |
| Additional Canvas Requirements | For a list of software, hardware, and computer settings specifically required by the Canvas LMS, please review Canvas' computer specifications. |
| Additional Software | All Penn State students have access to Microsoft Office 365, including Microsoft Office applications such as Word, Excel, and PowerPoint. |
| Hardware | Monitor: Monitor capable of at least 1024 x 768 resolution |
| Mobile Device (optional) | The Canvas mobile app is available for versions of iOS and Android. To determine if your device is capable of using the Canvas Mobile App, please review the Canvas Mobile App Requirements. |
Student Education Experience Questionnaire (SEEQ)
During the semester you will receive information for completing the Student Education Experience Questionnaire (SEEQ). Your participation is an opportunity to provide anonymous feedback on your learning experience. Your feedback is important because it allows us to understand your experience in this course and make changes to improve the learning experiences of future students. Please monitor email and course communications for links and availability dates.
If you need technical assistance at any point during the course, please contact the Service Desk.
For registration, advising, disability services, help with materials, exams, general problem solving, visit World Campus Student Services!
Course Requirements and Grading
| Assignment Category | Weight |
|---|---|
| Lesson Quizzes and Activities | 20% |
| Discussion Forum Participation | 10% |
| Eagle View Case Assignment | 40% |
| Mid-Term Exam | 15% |
| Final Exam | 15% |
Lesson Quizzes and Activities
Each lesson, you will complete a brief activity and/or short lesson quiz to evaluate your comprehension of the material. Quizzes will consist of 10 multiple choice questions, and you will be allowed two attempts at each quiz. The highest grade you achieve will be recorded in the gradebook. Quizzes will be available for review after submission. These questions are designed to prepare you not only for the exams in this course, but also for the CPA exam if you choose to take it in the future.
Discussion Forum Participation
Throughout the course, discussion forums are used to help you process and evaluate the content with your peers. Post a thorough response to the question, and be sure to draw from readings, resources, and experience to support your claims. Initial posts should be added to the course no later than 11:59 PM ET on Wednesday of the lesson week, and responses to peers should be posted by Sunday at 11:59 PM ET. You are encouraged to check back often and post throughout the week in order to truly engage in academic discourse. Discussion forum posts will be graded using the Discussion Forum Rubric.
Eagle View Case Study
Throughout the semester, you will apply what you are learning to the Eagle View Case Study. This assignment is broken into several pieces, and is designed to provide you with the experience of working through parts of the audit to reach a decision. The assignment page for each step of the case study will provide detailed instructions as well as a list of resources to assist you in performing your audit. These resources, available through the Library Resources in Canvas, include checklists and practice aids from PPC’s Guide to Audits of Non Public Companies.
Exams
This course contains a mid-term and final exam. Both consist of multiple choice questions with a 120-minute time limit. After 120 minutes, your exam will be submitted automatically. You must complete the exams in one sitting, and questions will be randomly delivered one-at-a-time.
| Numerical Value | Letter Grade |
|---|---|
| 93 and above | A |
| 90-92.99 | A- |
| 87-89.99 | B+ |
| 83-86.99 | B |
| 80-82.99 | B- |
| 75-79.99 | C+ |
| 70-74.99 | C |
| 60-69.99 | D |
| Below 60 | F |
Course Schedule
Note: All due dates reflect North American eastern time (ET).
The schedule below outlines the topics we will be covering in this course, along with the associated time frames and assignments. Note that assignments are due based on North American Eastern Standard Time (ET). This ensures that all students have the same deadlines regardless of where they live.
Discussion forum assignment due dates are as follows:
- First post is due by 11:59 PM ET on Thursday of the week in which it is assigned, unless otherwise noted.
- All replies and additional posts are due by 11:59 PM ET on Sunday of the week in which it is assigned, unless otherwise noted.
Unless otherwise noted, all other assignments are due at 11:59 PM ET on Sunday of the week assigned.
Course Orientation and Introduction
Lesson 1: Course Expectations and Research
|
Readings: |
|
|---|---|
|
Assignments: |
|
Lesson 2: The Audit - An Overview of the Process, the Professional, and Audit Quality
|
Readings: |
|
|---|---|
|
Assignments: |
|
Lesson 3: The Audit Reports and Corporate Governance
|
Readings: |
|
|---|---|
|
Assignments: |
|
Lesson 4: Ethical Decision-Making and the Auditor's Professional Liability
|
Readings: |
|
|---|---|
|
Assignments: |
|
Lesson 5: The Roles of Documentation and Audit Evidence in the Audit Process
|
Readings: |
|
|---|---|
|
Assignments: |
|
Lesson 6: Management Responsibilities and Assertions
|
Readings: |
|
|---|---|
|
Assignments: |
|
Lesson 7: Fraud Assessment
|
Readings: |
|
|---|---|
|
Assignments: |
|
Mid-Term Exam
|
Readings: |
|
|---|---|
|
Assignments: |
|
Lesson 8: Audit Planning, Strategy and Audit Program
|
Readings: |
|
|---|---|
|
Assignments: |
|
Lesson 9: Establishing the Levels of Materiality for the Audit
|
Readings: |
|
|---|---|
|
Assignments: |
|
Lesson 10: Internal Control and Risk Assessment
|
Readings: |
|
|---|---|
|
Assignments: |
|
Lesson 11: Test of Controls and Transactions, and Details of Balances
|
Readings: |
|
|---|---|
|
Assignments: |
|
Lesson 12: Completing the Audit
|
Readings: |
|
|---|---|
|
Assignments: |
|
Final Exam
|
Readings: |
|
|---|---|
|
Assignments: |
The exam will be open on Monday at 12:00 AM ET and is due by Tuesday at 11:59 PM ET. |
Formal instruction will end on the last day of class. Provided that you have an active Penn State Access Account user ID and password, you will continue to be able to access the course materials for one year, starting from the end date of the academic semester in which the course was offered (with the exception of library reserves and other external resources that may have a shorter archival period). After one year, you might be able to access the course based on the policies of the program or department offering the course material, up to a maximum of three years from the end date of the academic semester in which the course was offered. For more information, please review the University Course Archival Policy.
Note: If you are planning to graduate this semester, please communicate your intent to graduate to your instructor. This will alert your instructor to the need to submit your final grade in time to meet the published graduation deadlines. For more information about graduation policies and deadlines, please go to the Graduation Information on the My Penn State Online Student Portal.
Academic Integrity
According to Penn State policy G-9: Academic Integrity , an academic integrity violation is “an intentional, unintentional, or attempted violation of course or assessment policies to gain an academic advantage or to advantage or disadvantage another student academically.” Unless your instructor tells you otherwise, you must complete all course work entirely on your own, using only sources that have been permitted by your instructor, and you may not assist other students with papers, quizzes, exams, or other assessments. If your instructor allows you to use ideas, images, or word phrases created by another person (e.g., from Course Hero or Chegg) or by generative technology, such as ChatGPT, you must identify their source. You may not submit false or fabricated information, use the same academic work for credit in multiple courses, or share instructional content. Students with questions about academic integrity should ask their instructor before submitting work.
Students facing allegations of academic misconduct may not drop/withdraw from the affected course unless they are cleared of wrongdoing (see G-9: Academic Integrity ). Attempted drops will be prevented or reversed, and students will be expected to complete course work and meet course deadlines. Students who are found responsible for academic integrity violations face academic outcomes, which can be severe, and put themselves at jeopardy for other outcomes which may include ineligibility for Dean’s List, pass/fail elections, and grade forgiveness. Students may also face consequences from their home/major program and/or The Schreyer Honors College.
How Academic Integrity Violations Are Handled
World Campus students are expected to act with civility and
personal integrity; respect other students' dignity, rights, and
property; and help create and maintain an environment in which all
can succeed through the fruits of their own efforts. An environment
of academic integrity is requisite to respect for oneself and
others, as well as a civil community.
In cases where academic integrity is questioned, the Policy on Academic Integrity indicates that procedure requires an instructor to inform the student of the allegation. Procedures allow a student to accept or contest a charge. If a student chooses to contest a charge, the case will then be managed by the respective college or campus Academic Integrity Committee. If that committee recommends an administrative sanction (Formal Warning, Conduct Probation, Suspension, Expulsion), the claim will be referred to the Office of Student Accountability and Conflict Response.
All Penn State colleges abide by this Penn State policy, but review procedures may vary by college when academic dishonesty is suspected. Information about Penn State's academic integrity policy and college review procedures is included in the information that students receive upon enrolling in a course. To obtain that information in advance of enrolling in a course, please contact us by going to the Contacts & Help page .
Additional Academic Integrity Violations
Please note: Various tutoring websites claim to offer you the opportunity to download answers to everything from accounting problems to quiz questions for little to no cost. Full papers can also be downloaded to submit in place of your own work. Use of these materials, or “ghosting,” is considered cheating and an academic integrity violation. Similarly, uploading exams, course materials, or your work to one of these sites is considered an academic integrity violation.
Using online services that complete assignments for you is considered an academic integrity violation.
Giving your Penn State Access ID and password to someone else to do your work is against University policy AD95/AD96 and an academic integrity violation; sanctions will be given for these violations.
Course Policies
Late Policy
Late Assignments will not be accepted. It is your responsibility to contact the instructor prior to the due date of an assignment if you are aware of extenuating circumstances that will impact your ability to meet a deadline. The instructor will determine if alternative arrangements may be made.
Accommodating Disabilities
Penn State welcomes students with disabilities into the University's educational programs. Every Penn State campus has resources for students with disabilities. The Student Disability Resources (SDR) website provides contacts for disability services at every Penn State campus. For further information, please visit the SDR website.
In order to apply for reasonable accommodations, you must contact the appropriate disability resources office at the campus where you are officially enrolled, participate in an intake interview, and provide documentation based on the documentation guidelines. If the documentation supports your request for reasonable accommodations, your campus's disability resources office will provide you with an accommodation letter. Please share this letter with your instructors and discuss the accommodations with them as early in your courses as possible. You must follow this process for every semester that you request accommodations.
Additional Course Policies
For information about additional policies regarding Penn State Access Accounts; credit by examination; course tuition, fees, and refund schedules; and drops and withdrawals, please see the World Campus Student Center website.
Penn State takes great pride to foster a diverse and inclusive environment for students, faculty, and staff. Acts of intolerance, discrimination, or harassment due to age, ancestry, color, disability, gender, gender identity, national origin, race, religious belief, sexual orientation, or veteran status are not tolerated and can be reported through Educational Equity via the Report Bias webpage.
If you have a crisis or safety concern, mental health services are available to you as a Penn State student. Crisis and emergency contacts are available, no matter where you are located:
- Anywhere in the United States: Call the Penn State Crisis Line at 1-877-229-6400 or text LIONS to 741741. You can also contact your local crisis services or hospital for emergencies.
- Outside the United States: Please contact emergency services in your current location. You can also use the International Crisis and Emergency Services listings.
- At University Park: Assistance is available at Counseling & Psychological Services (CAPS) locations on campus.
- At a Penn State branch campus: You can search for counseling information at your campus.
Veterans and currently serving military personnel and/or dependents with unique circumstances (e.g., upcoming deployments, drill/duty requirements, VA appointments, etc.) are welcome and encouraged to communicate these, in advance if possible, to the instructor in the case that special arrangements need to be made.
Disclaimer: Please note that the specifics of this Course Syllabus are subject to change, and you will be responsible for abiding by any such changes. Your instructor will notify you of any changes.