GENERAL EDUCATION: This course does not fulfill a General Education requirement.

CATALOG DESCRIPTION: This Course will provide an introduction to the basic concepts of current practices and standards in professional auditing and assurance services. The focus will be on the practice of auditing in the public accounting context, but will also include discussion of other types of auditing such as fraud auditing and assurance services.
DESCRIPTION: The auditing course is intended to introduce students to the field of financial auditing. In addition to understanding the nature of auditing in a public context, students will be exposed to emerging issues. Such issues may include assurance services, internal auditing and fraud prevention and detection. Additionally, this course will serve as a practical application of the statistical knowledge that accounting students are required to learn in Mathematics 221 (Principles of Statistics). The course will require students to demonstrate oral and written skills through completion of an auditing case, which will be relevant to current business, and auditing issues.
TOPICS: 1. Introduction to Auditing and Assurance Services
a. Introduction
b. Overview of Financial Statement Auditing
2. Basic Auditing Concepts
a. Materiality and Audit Risk
b. Evidential Matter and Types of Evidence
3. Planning the Audit and Understanding Internal Control
a. Audit Planning and Types of Audit Tests
b. Internal Control
4. Statistical Applications in Auditing
a. Audit Sampling: Tests of Controls
b. Audit Sampling: Substantive Tests of Account Balances
5. Fraud
a. Elements of Fraud
b. Fraud Prevention and Detection
c. Career Opportunities
6. Accounting Cycles Involved in the Auditing Process
a. Revenue Cycle
b. Purchasing Cycle
c. Payroll Cycle
d. Inventory Cycle
e. Cash and Investments
7 Reports
a. Reports on Audited Financial Statements
b. Other Assurance Services Reports
8. Professional and Ethical Responsibilities
a. The Code of Professional Conduct
b. Ethics
9. Internal Auditing
a. Objectives of Internal Auditing
b. Differences Between Internal Auditing and External Auditing
OBJECTIVES: 1. Introduce students to the overall objectives of auditing, assurance services and internal control.
2. Assist students to understand how statistical procedures find application in the field of accounting.
3. Heighten awareness of the growing danger of fraud and the role that accountants my play in its prevention and detection.
4. Aid in preparing students to sit for and pass the Auditing material encompassed on the CPA examination.
REQUIREMENTS: 1. Demonstrate mastery of the material by passing the examinations that will test the topics listed above. These examinations are expected to be primarily multiple choice to mirror the CPA examination. Successful completion of the examinations will demonstrate achievement of the objectives stated above.
2. Complete an auditing case that will center on relevant topics at the time. Probable topics include audit failures or financial fraud. The case should include both oral and written components. The case will likely be conducted in a team fashion.
OTHER: Because many of our students have long term plans to become Certified Public Accountants (CPAs) they must transfer to other universities in order to qualify just to sit for the CPA examination. This is due to the fact that the majority of states (including Idaho, Utah, Arizona and most other Western states) require 150 hours of university education. When our students are accepted to graduate school they routinely are required to take an undergraduate auditing class as a deficiency of the education received at BYU-Idaho. Offering this auditing class at BYU-Idaho will allow those students who plan to become CPAs to avoid beginning their graduate work with an auditing deficiency. This elective course will also provide a valuable overview of the auditing profession to those students who plan to enter other areas of business and accounting.