Auditing – A Preface to the Course

This preface lesson is designed to review some basic accounting concepts, present resources for research, and reinforce a few topics that apply across the accounting discipline.  Auditing is as much an attitude as it is a process, and students are not always prepared to learn about auditing. No one explains this concept when you are registering for the course! This lesson is designed to provide the framework necessary to develop the mindset of an auditor. I make no assumptions about students;  I do, however, have expectations. I expect:

• A positive attitude.
• Honesty! Be honest with me, and more importantly, be honest with yourself.  I do not know what you expect from this course, and only you can determine that.
• Commitment to learning.  I do not know what you know or don't know.  You may need to work a little harder in some areas.  I am asking you to make the commitment.
• Acceptance that auditing has a purpose beyond a requirement for your degree.  I like to think the auditor is trained to see things a little differently.  This visionary quality will serve you well in any profession and in life.  It is yours for the taking.

Your prior accounting courses have taught to think analytically and speak “accountantese,” the language of accounting and business.  This course will help you learn “auditese,” the language of auditing.  You will learn to think like an auditor, even more analytically than before.  Your perspective changes from simply learning the accounting process to reviewing and auditing the accounting process. 

Lesson 1 Objectives

After completing this lesson you should be able to do the following:

• Access the online Penn State University Library system and RIA Checkpoint Database.
• Recall the fundamental mechanics of accounting, including GAAP, steps in the accounting process, and standard accounting records.
• Define corporate governance and agency theory.

Lesson Readings & Activities

By the end of this lesson, make sure you have completed the readings and activities found in the Lesson 1 Course Schedule.