ACC 403 Auditing
Apollo Shoes Assignment
Apollo Shoes is an audit case designed to introduce students to the entire audit process, from
planning the engagement to drafting the final report. Students are asked to assume the role of a
ACCT 415 Chapter 2
January 22, 2014
Non-audit Serviceso Tax preparation and planning services Filing tax returns, advice on tax and estate planning, represent clients on tax issues
in front of IRS or Tax Courts.
o Management Advisory Services Provide advi
Chapter 13 - Auditing the Inventory Management Process
Auditing the Inventory Management Process
True / False Questions
1. The "cradle-to-grave" cycle for inventory begins when goods are purchased and stored and
ends when the finished goods are
Chapter 11 - Auditing the Purchasing Process
Auditing the Purchasing Process
True / False Questions
1. Product costs should be matched directly with specific transactions and are recognized
upon recognition of revenue.
2. A purchase
Chapter 07 - Auditing Internal Control over Financial Reporting
Auditing Internal Control over Financial Reporting
True / False Questions
1. All companies must follow the guidelines of AS5.
2. Most public companies must follow the gu
Chapter 14 - Auditing the Financing/Investing Process: Prepaid Expenses, Intangible Assets, and Property, Plant,
Auditing the Financing/Investing Process: Prepaid Expenses, Intangible
Assets, and Property, Plant, and Equipment
Reports on Audited
The television industry doesnt like to see the complexity of the
world. It prefers simple reporting, with simple ideas: this is white,
thats black; this is good, thats bad.
Filmmaker Krisztof Kieslowski
Completing the Audit
It aint over till its over.
Yogi Berra, former catcher for the New York Yankees
1. Describe the approach used to examine major
revenue and expense accounts.
2. Identify procedures performed by audi
Employee Fraud and the
Audit of Cash
"Rather fail with honor than succeed by fraud."
-Sophocles (496-406 BCE)
Chapter 6 Objectives
1. Define and explain the differences among several kinds of
employee frauds that might occur in an entity.
Internal Control Evaluation
If everything seems under control, you're just not going fast enough.
- Mario Andretti, Race car driver
Chapter 5 Objectives
1. Distinguish between managements and auditors
Finance and Investment Cycle
Credit has done a thousand times more to enrich mankind than all
the goldmines in the world. It has exalted labor, stimulated manufacture
and pushed commerce over every sea.
There is one rule for industrialists and that is: Make the best
quality of goods possible at the lowest cost possible, paying the
highest wages possible.Henry Ford
1. Describe the production cycle, includ
Acquisition and Expenditure Cycle
Show those numbers to the damn auditors and I'll throw you out the $%*@
window.-(Buddy Yates, director of WorldCom, Inc. general accounting, to an
employee asking for an explanation of a large accounting discrep
Revenue and Collection Cycle
What at first was plunder assumed the softer name of
revenue. Thomas Paine
1. Discuss inherent risks related to the revenue and
collection cycle with a focus on improper
Chapter 3: Audit Planning, Types of Audit Tests, and Materiality
The phases of an audit that relate to audit planning:
o Client acceptance and continuance
o Preliminary engagement activities
o Plan the audit
Prospective Client Acceptance
When the p
Chapter 19: Professional Conduct, Independence, and Quality Control
Standards for Auditor Professionalism
The AICPA established auditing standards and a Code of Professional Conduct,
mapping out the primary areas in which ethical conduct is expecte
Chapter 2: The Financial Statement Auditing Environment
External auditors are often referred to as independent auditors.
May practice as a sole proprietor or as a member of a CPA firm.
They audit financial statements for public a
Corporate Culture and Leadership
INSTILLING A CORPORATE CULTURE
THAT PROMOTES GOOD STRATEGY
Is the meshing of shared values, beliefs,
business principles, and traditions that imbues
a firms operating style, behavioral
Ethics, CSR, Environmental
Sustainability and Strategy
WHAT DO WE MEAN BY BUSINESS ETHICS?
Is the application of general ethical
principles to the actions and decisions of
businesses and the conduct of their
Are not m
Number of starters
$11.25 per hour
$0.45 per ounce
Chapter 1: An Introduction to Assurance and Financial Statement Auditing
Auditing focuses learning the analytical and logical skills necessary to evaluate the
relevance and reliability of financial information as well as of the sy
"Vision without action is a daydream.
Action without vision is a nightmare.
- - Japanese Proverb
Chapter 4 Learning Objectives
1. List and describe the activities that auditors undertake
before beginning an engagement.
Management Fraud and Audit Risk
My actions are inexcusable. I'm sorry for the hurt that has been caused
by my cowardly behavior.
- Scott Sullivan, former WorldCom CFO, at his sentencing.
"It takes 20 years to build a reputation and five minutes
Module B - Professional Ethics
MODULE B Professional Ethics LEARNING OBJECTIVES
Review Checkpoints 1. Understand general ethics and a series of steps for making ethical decisions. 2. Reason through an ethical decision problem using the imperative, utilita
Module A - Other Public Accounting Services
Other Public Accounting Services
1. Explain and provide examples of attestation
1, 2, 3, 4
35, 37, 38, 55