ACNT 2377- Advanced Auditing Concepts






COURSE TITLE: Advanced Auditing Concepts

CREDIT HOURS: 3 (Lecture)


METHOD OF PRESENTATION: Lecture, Case Studies, Group Activities and Research activities

CATALOG DESCRIPTION:  Application of complex accounting principles in an audit environment.  Using authoritative literature for research, case studies, address applications of changes in accounting principles, balancing client service with ethics/independence, and applying professional judgement to complex auditing and financial reporting issues.  Control exposure in systems, operational and program audits and computer applications are integrated into this course.


TEXTBOOK: Miller GAAS Guide, Dryden Press; Most current edition: reissued each year.


COURSE REQUIREMENTS: See Specific Instructor's First Day Class Handout


OTHER: Students are expected to complete all written assignments using appropriate computer software.  Tools including XBRL, CAAT,  research (such as FARS), and basic statistical tools (as supplied by EXCEL) will be utilized throughout the semester.



1. Uses Computers to Process Information: Employs computers to acquire, organize, analyze and communicate information.

2.Reasoning:  Discovers a rule or principle underlying the relationship between two or more object and applies it in solving a problem. For example, uses logic to draw conclusions from available information, extracts rules or principles to a new situation, or determines which conclusions are correct when given a set of facts and a set of conclusions.

3. Writing:  Communicates thoughts, ideas, information and messages in writing; records information completely and accurately; composes and creates documents such as letters, directions, manuals, reports, proposals, graphs, flow charts; uses language, style, organization and format appropriate to the subject matter, purpose and audience.  Includes supporting documentation and attends to level of detail; checks, edits and revises for correct information, appropriate emphasis, form, grammar, spelling and punctuation.,


CLASS CONDUCT AND METHOD: The course will be taught in several conceptual units. Students are expected to keep up with current events either via the library or the internet (preferable) and bring this information into the classroom discussion.  Students will write cases individually or in groups. Students will research audit and accounting issues in conjunction with casework. Students will consider ethics in casework study.  Course Grading will include at least one student project which has a student research component and a student presentation.










COURSE OBJECTIVES: The goals and objectives of the course are

1.   Further the students understanding of the audit environment and the impact of current events and standard setting on that environment.

2.   Understand the controls of CBIS and evaluation and testing of CBIS controls.

3.   Understand the role of the certified fraud examiner and the role of the CPA in the detection of fraud.  Become familiar with the warning signs of both management fraud, employee fraud and the steps involved in a fraud investigation.

4.   Become familiar with and develop skills to draw conclusions about the following "gray" areas of auditing and accounting:

      a.  Going concern issues

      b.  Opinion - qualification or adverse?

      c.  Opinion  - unqualified or qualified?

      d.   To disclose or no to disclose?  How much?

      e.  Materiality - to adjust the financial statements or not?

5.   Become familiar with his risk areas such as related party transactions, SPEs, unconsolidated investments, off balance sheet financing, derivatives and hedging transactions.

6.   Understand the high ethical and professional standards that a CPA must follow and research any questionable acts, investment activity and or practices which may come to the attention of the auditor for compliance with the Code of Professional Conduct.

7    Demonstrate the ability to research auditing and accounting issues and respond to current

developments and changes in the accounting and auditing  profession due to legislation,  new pronouncements by regulatory and standard-setting bodies and forces of current events in the business world.





                1.   Computer Based Information Systems and Computers in Auditing: Study the types of controls in a computer with significant computer applications.  Assess those controls and test where appropriate. 

2.   Fraud:  Learn investigative tools used by CFEs as well as tools used by independent

      accountants when conducting an audit.  Casework.

3.   Panel Formation to set standards to deal with current events in accounting:, professional liability, responsibility  i.e. independence, audit failures,  pressures put on profession for greater disclosure, etc. (Student version of PCAOB or ASB).  Panel to deal with sanctions of CPAs in violation of code of conduct.

4.   Casework to deal with reporting issues.

5.   Research of high risk areas and presentation of student written audit programs for each area.

6.  Additional areas as indicated by the instructor.