AUDIT

Name of college : SATA Technology & Business College
Name of College/Faculty: BUSINESS

Name of Department: Accounting and Finance Program
Instructor:- Tesfaye G.
Course Information
Course code ACFN 422
Course Title Auditing Principles and Practices II
Degree Program BA Degree in Accounting and Finance
Course At the end of the course the student is expected to:
Objectives & • Apply his knowledge of auditing theory, auditing standards, techniques and procedures to
Competences to practical situations commonly encountered relative to an opinion audit.
be Acquired • Be acquainted the principles that underlie audit of Balance Sheet and Income Statement
accounts
• Enumerate and understand the audit objectives for the audit of major accounts;
• Develop audit procures for the audit of major accounts; and
• Comprehend the significance of professional competence, independence, and mental
integrity in the practice of accountancy.
• Be committed to bringing about a prevalence of good reporting practice and contribute to
the pursuit of social justice and fairness.
Course The course builds on the knowledge gained in Auditing I. It covers an in depth practical aspects of
Description topics introduced in Auditing I and brings in new concepts as well. The course introduces audit
sampling in general and goes on to application of statistical tools in tests of controls and balances.
The technical application of auditing procedures for balance sheet and income statement accounts
in an audit undertaking are the foremost subject matters of the course. Audit of systems that include
EDP application along with tools and techniques used in evaluation and understanding of internal
control in such environments will be introduced.
WEEKS Course Contents Reading

1.Sampling in Auditing
1.1Rationale for and methods of Audit Sampling
1.2Audit sampling for tests of controls
1.3Audit sampling for substantive tests
2. Audit of Cash and Marketable Securities
2.1. Internal control over cash transactions, receipts and
disbursements
2.2. Audit program for cash
2.3. Internal control over Marketable securities
2.4. Audit program for marketable securities
3. Audit of Receivables and Sales
3.1. Internal control over Sales transactions, and Accounts
Receivable
3.2. Internal control over Notes Receivable
3.3. Audit program for Receivables and Sales
4. Inventories and Cost of goods sold
4.1. Internal control over Inventories and Cost of goods sold
4.2. Audit program for Inventories and Cost of goods sold
5. Audit of Fixed Assets

5.1. Internal control over plant and equipment
5.2. The plant and equipment budget
5.3. Audit program for property plant and equipment
6. Audit of current liabilities
6.1. Internal control over Accounts payable
6.2. Audit program for accounts payable and other
liabilities
7. Audit of Debt and Equity capital
7.1. Internal control over interest bearing debt
7.2. Audit programs for interest bearing debt
7.3. Internal control over equity capital and dividends
7.4. Audit program for capital stock
7.5. Audit of sole proprietorships, and partnerships
7.6. Disclosure of contingencies
Teaching & The teaching and learning methodology include lecturing, discussions, problem solving, and
Learning analysis. Take-home assignment will be given at the end of each chapter for submission
Methods/strateg within a week. Solution to the assignments will be given once assignments are collected.
y Cases with local relevance will also be given for each chapter for group of students to
present in a class room. The full and active participation of students is highly encouraged.
Assessment
/Evaluation The evaluation scheme will be as follows:
Test 1 Test2 Test 3 Quiz1 Assignment 1 Final Total
/mid/
10% 10% 20% 5% 15% 40% 100%
Work load in
hours Hours Required
Self- Total Hrs
Lectures Lab Assessments Tutorials Studies Assignment Advising
48 - 10 12 55 - - 135
Roles of the He/she will come to the class regularly on time and deliver the lecture in a well-organized
Instructor manner. Besides, at the end of each class he/she gives reading assignment for the next
class. He/she will make sure that proper assessments are given. He/she is also responsible
to give feedback for each assessment.
Roles of the The success of this course depends on the students’ individual and collective contribution to
students the class discussions. Students are expected to participate voluntarily, or will be called upon,
to contribute to set exercises and problems. Students are also expected to read the assigned
readings and prepare the cases before each class so that they could contribute effectively to
class discussions. Students must attempt assignments by their own. Proficiency in this course
comes from individual knowledge and understanding. Copying the works of others is
considered as serious offence and leads to disciplinary actions.
Text and Text Book: Arens and Loebeck
reference books Reference Books
Reference Books
Meigs et al Principles of Auditing, 10th ed.
Hayes, Dassen, Schilder & Wallage, Principles of Auditing, 2nd ed. 2005

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AUDIT

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Name of college : SATA Technology & Business College

Name of College/Faculty: BUSINESS

WEEKS Course Contents Reading

5. Audit of Fixed Assets

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