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Faculty of Economics and Business

Universitas Gadjah Mada

Magister in Accounting Syllabus
Compliant Auditing & Internal Control
Office Address
Phone Number
Consultation :

Hardo Basuki, Dr., M.Soc.Sc, CMA & Taufikur Rahman, SE, MBA, Akt.
Faculty of Economics and Business 2nd Floor West Wing
(0274) 548510 ext. 172
Thursday, 12.30 13.30
Out of that schedule, make an appointment first by email
: & &
This subject is one of some elective topics in auditing, focused on internal auditing
(especially compliant auditing) in organization or company. Several topics will be
discussed such as: internal auditing concepts, internal auditor profession and
environments, internal audit professional standards and code of ethics, fundamental of
internal control system, internal audit process, internal audit reporting and
Main objective is to enable students to understand and know the internalcompliant audit process as independent function in organization and help
management process in attaining organization goals, especially in reviewing of
effective design and operation of internal control system.
Student must be active in this class and using basic auditing knowledge that
acquired in previous classes to participate and discuss internal auditing issues.
Students must have a group to present and discuss a topic according to the class
a. Students demonstrate the ability to apply critical thinking
b. Students demonstrate the ability to analyze and evaluate accounting information
1. Demonstrate the ability to analyze audit process
2. Demonstrate the ability to evaluate financial statement for audit purpose
c. Students have ethical understanding and reasoning
1. Demonstrate ability to identify ethical issues in auditing environment
2. Demonstrate ability to identify and explain moral standards can be used to
evaluate ethical issues in business environment
3. Students demonstrate ability to observe business situations or decisions from
various moral standards
d. Students demonstrate the ability to work in teams
1. Demonstrate the ability to respect peers in auditing
2. Demonstrate the ability to contribute to the team
After completion of this course, students are expected to be able to:
1. Understand internal auditing environment and why the entity need internal
2. Demonstrate the ability to identify importance of internal controls & internal
controls frameworks worldwide
3. Determine the relationship internal audit and corporate governance
4. Understand and identify internal audit professional standards and code of ethics
5. Demonstrate the ability to assess risks: enterprise risk management
6. Develop audit plan: to select internal audits auditees

7. Demonstrate the ability to make audit preparation & initial audit survey
8. Demonstrate the ability to prepare internal audit program and working paper
9. Demonstrate the ability to make initial internal control review & expanded testing
10.Demonstrate the ability to identify internal audit evidence & findings
11.Demonstrate the ability to make internal audit report
12.Demonstrate the ability to perform follow-up review & internal audit evaluation
13.Understand the Sarbanes-Oxley and beyond (contemporary internal audit issues)
Auditing and accounting are closely related, however those two subjects are came
from different discipline. An auditor should be mastered in accounting; therefore
before the students take this course, they should have taken at least intermediate
accounting courses. The auditing practice in a country is different from other
countries, especially for internal auditing, differences among companies. This course
uses the following resources:
1. Brink, Victor Z., and Herbert Witt, 2010, Modern Internal Auditing Appraising Operations
and Control. 5th Ed., John Willey & Sons (B)
2. Pickett, K.H. Spencer, 2010, The Internal Auditing Handbook, John Willey & Sons, (P)
3. Ratliff, Richard L., Wanda A. Wallance, James K. Loebbecke, William G. McFarland, 1998.
Internal Auditing-Principles and Techniques. The Institute of Internal Auditors. (R)
Read the materials and do the homework to be discussed in each session before
class meeting. Each class meeting should be used to confirm the students
understanding of the material and discussion the homework. The students
should submit the individual homework before the class meeting, submitting after
that time will be ignored.
Operating lap top, cellular/smart phone, and other communication/electronic
devices are strictly prohibited during the class meeting unless the lecturer allow
Students are expected not to be late not more than 15 minutes
Students should maintain academics honesty, they should avoid from
committing to cheating and plagiarism as defined below. Ignorance of these
definitions will not provide an excuse for acts of academic dishonesty. Students
who cheat or commit the act of plagiarism will be assigned a grade of E for the
course and will be reported to the Academic Division for the most possible severe
The definitions for cheating and plagiarism are: cheating includes but is not limited to,
giving or receiving unauthorized assistance during an examination; obtaining
unauthorized information about an examination before it is given; submitting
anothers work as ones own; using prohibited sources of information during an
examination; fabricating or falsifying data in experiments and other research; altering
the record of any grade; altering answers after an examination has been submitted;
falsifying any official University record; or misrepresenting of facts in order to obtain
exemptions from course requirements.
Plagiarism includes but is not limited to, submitting, in fulfillment of an academic
requirement, any work that has been copied in whole or in part from another
individuals work without attributing that borrowed portion to the individual; neglecting
to identify as a quotation anothers idea and particular phrasing that was not
assimilated into the students language and style or paraphrasing a passage so that
the reader is misled as to the source; submitting the same written or oral or artistic
material in more than one course without obtaining authorization from the instructors

involved; or drylabbing, which includes obtaining and using experimental data and
laboratory write-ups from other sections of a course or from previous terms.
The student centre learning method is used in this course. Students must be an active
learner to find and construct their own knowledge from the given resources
material or other resources such as from internet, journal, articles, or other
published information. The instructor serves only as facilitator to motivate and to
drive the students to achieve learning objectives and develop their auditing skills.
The assessment is designed so that a student can earn a total score of 100 for all
combining components. The components are as follows:
Class Attendance and Participation:
Assignments & Quiz
Mid-Term Examination:
Final Examination:
Class Projects (group: 3-4 students):
The final score will be ranked to a course grade based on the following scheme:
A :
C+ : 65 to 69
A - : 85 to 89
C : 60 to 64
B+ : 80 to 84
D : 50 to 59
B : 75 to 79
E : < 50
B - : 70 to 74
Homework: The homework is based on questions from the Boynton textbook. The
instructor will identify the questions to be answered. Homework exercises are part of
the learning process. In addition, some assignments may be used as a quiz or as a
revised problem on an exam. It is very important to know that doing your homework
is an integral part of learning auditing. You must be present to turn in homework
before the class meeting and late homework will not be accepted.
Mini Project: Mini project is implementation of internal audit process in field work, it
is not audit but the practice of internal audit theory for specific field. A group of
student will perform a mini project of internal audit in certain entity (chosen by
students). Every week each group should present a progress of internal audit step
(performance) in certain internal audit working paper. Based on these working papers,
eventually each group will develop internal audit report at the end of class.
Exam and Test Content: The exams during the semester will primarily test your
ability to solve auditing problems. You may need a calculator for these exams.
Notebook or cellular phone is not allowed to be used during quizzes, tests, and exams.
Additional teaching materials (case studies and articles) will be distributed at least one
week prior to the relevant class session. There will be no make-up exams.
Quiz Contents: There will be quizzes during the semester. These quizzes will test
your knowledge of theory and problems. A quiz may consist of taking up a homework
problem, may be a problem or an essay given in class, or it may be an assignment to
be turned in on next class meeting. There will be no make-up quizzes. You must bring
your text to class each day.
Attendance: Attendance is very important. If you do not attend class, the quiz
cannot be made up and no late assignments are accepted.

Disclaimer: This syllabus is a general plan for the course. Changes may be made in
the course content as the semester progresses.
Withdrawal/Drop Policy: The student has the responsibility to withdraw from the
course. If a student stops attending class and do not drop the course, a grade of "E"
will be assigned at the end of the semester.



Syllabus Overview
Review previous audit subjects

Foundation of Internal Auditing

Evaluating the Importance of Internal Controls & Internal Controls

Frameworks Worldwide

Internal Audit and Corporate Governance

Internal Audit Professional Standards and Code of Ethics

Understanding and Assessing Risks: Enterprise Risk Management

Internal Audit Management

Overview Internal Audit Process & Selection of Auditee

Internal audit planning: audit preparation & initial audit survey & ICQ


Internal audit program and working paper


Initial internal control review & expanded testing


Internal audit evidence & findings


Internal audit report


Follow-up review & internal audit evaluation

B-1, P-1, P-5, R-1
Discussion, Homework
R-3, B-3, P-4
P-2P-8, B-12, B-23
B-8, B-24, P-6, R-2
Discussion, Homework
B-6, P-3
Discussion, Homework
R-12, P-20-21

Mid Semester Test

Final Semester Test

B-10, B-15, R-6, R-7

B-10, R-8, Project 1,
Progress report 1
R-9 B-9, B-16, Project
Progress report 2
R-9, B-9, B-16, Project
Progress report 3
R-10, B-17, Project 4,
Progress report 4
R-10, B-17, Project 5,
Progress report 5
R-11, B-17, Project 6,
Final report 6