Lebanese International University

School of Business
Department of Accounting Information Systems
Spring 2015/2016

BACC 430 Auditing and Fraud Prevention

Instructors: Ahmad Salloum- Hala Baydoun- Hassan Nasereddine- Maria Hojeij- Reem
Kabbara- Rofayda El Hout- Wissam El Hajj
Office Hours: Business School
Lecture Days: MW
Note: If these office hours are not convenient, please make an appointment at a mutually
agreeable time. It is best to make an appointment or you can send an e-mail message.

Course Description
The purpose of this course is to provide strong understanding of the basic concepts that
underlie the audit process and how to apply those concepts. It introduces auditing,
attestation and assurance services and helps the student understand the overall audit
process.

Course Outcomes
At the end of this course, students will be able to:
1. Understand the role of an auditor and the purpose of the audit
2. Describe the overall audit process, including the steps necessary to perform a complete
audit
3. Understand the purpose and importance of internal controls in a business environment
4. Perform basic auditing procedures and draw conclusions from the testing performed
5. Analyze and evaluate conclusions reached in order to form an audit opinion
6. Understand the basic ethical and legal responsibilities of auditors

Topics Covered
1. Basic audit concepts
2. Audit reports
3. Audit planning
4. Risk assessment
5. Audit evidence and documentation

Prerequisites
BACC 410.

Co-requisites
N/A

Textbook and Recommended Material

Textbooks
Auditing and Assurance Services: A Systematic Approach, 8/e, Messier. McGraw-Hill.
References
N/A

Course Schedule
Week

Textbook/Reference
Auditing and Assurance
Services: A Systematic
Approach

Auditing and Assurance

Services: A Systematic
Approach

Topic
Chapter One: An Introduction to Assurance and
Financial Statement Auditing
(Page 1- Page 32)
Chapter One: An Introduction to Assurance and
Financial Statement Auditing
(Page 1- Page 32)
Chapter Two: The Financial Statement Auditing
Environment
(Page 34- Page 64)

Week

Textbook/Reference
Auditing and Assurance
Services: A Systematic
Approach

Topic
Chapter Two: The Financial Statement Auditing
Environment
(Page 34- Page 64)
Project Explanation

Auditing and Assurance

Services: A Systematic
Approach

Auditing and Assurance

Services: A Systematic
Approach

Chapter Eighteen: Reports on Audited Financial

Statements
(Page 612- Page 640)
Chapter Eighteen: Reports on Audited Financial
Statements
(Page 612- Page 640)
Project Topic Approval

Auditing and Assurance

Services: A Systematic
Approach

Chapter Three: Risk Assessment and Materiality

(Page 69- Page 96)

Auditing and Assurance

Services: A Systematic
Approach

Chapter Three: Risk Assessment and Materiality

(Page 69- Page 96)
Project Preparation and Approval
Chapter Four: Audit Evidence and Audit
Documentation
(Page 98- Page 128)

Auditing and Assurance

Services: A Systematic
Approach

Chapter Four: Audit Evidence and Audit

Documentation
(Page 98- Page 128)

Auditing and Assurance

Services: A Systematic
Approach

Chapter Five: Audit Planning and Types of Audit

Reports
(Page 130- Page 181)
Project Follow up

Week
10

Textbook/Reference

Topic

Auditing and Assurance

Services: A Systematic
Approach

Chapter Five: Audit Planning and Types of Audit

Reports
(Page 130- Page 181)
Chapter Six: Internal Control in Financial
Statement Audit
(Page 184- Page 211)

11

Auditing and Assurance

Services: A Systematic
Approach

Chapter Six: Internal Control in Financial

Statement Audit
(Page 184- Page 211)
Project Follow up

12

Auditing and Assurance

Services: A Systematic
Approach

Chapter Eight: Audit Sampling: An Overview and

Application to Tests of Controls
(Page 270- Page 307)
Project Submission and Presentation

13

Auditing and Assurance

Services: A Systematic
Approach

Chapter Eight: Audit Sampling: An Overview and

Application to Tests of Controls
(Page 270- Page 307)
Project Presentation

14

Auditing and Assurance

Services: A Systematic
Approach

Project Presentation and Review Session

Method of Instruction
A mix of passive and active techniques will be adopted, primarily:
1.
Instructor Lecture
2.
Class Discussion.
3.
Problem Based Learning or Case Study Analysis

Attendance Policy
1.
2.
3.

Attendance in all classes is required. There are no exceptions to this policy.

Roll will be called in the very beginning of each class. If you arrive after roll has
been called, you may be marked as absent.
In any regular semester or summer term, students may miss no more than the
equivalent of one third of class sessions scheduled. Students who exceed the
above limits are automatically given an (AW) grade in the course by the UMS,
and consequently not be allowed to attend class any longer.

Make-Up Examination Policy

As per university council decision, a student is eligible for a Test, Midterm or Final
examination make-up if and only if he/she had the following incidents:
a. Sickness; proved by hospitalization report; that is; a discharge summary is
necessary.
b. Death in the family proved by a death certificate or equivalent and
personal identification.
c. Accidents proved by an expert report.
d. Military/Official engagement.

Course Assessment
This course will be assessed by two main instruments:
1. Online student evaluation construct of 15 questions with Likert scale (5 answers)
2. Class visitation
These instruments will be reviewed by the department each term. In addition, the School
of Business Council will review the recommendation of the department at the end of each
academic year.

Marking Profile
Evaluation
CAPA
Midterm
Project
Final

Date

Time

Room

4/25/2016

75 minutes

Auditorium

TBA

2 hours

Weight
20%
30%
20%
30%

Chapters Covered
According to Structure
According to Structure
According to Structure

* A student cannot write any examinations without valid university identification.

Failing to have valid university identification will result in assigning a zero mark to the
relevant examination.

Homework
Homework should be clearly presented i.e.:
1. It should be written on A4 paper.
2. It should include a title page (Course Name, Semester, Date, Name).
3. Your instructor will ask you to submit your homework online or as a hard copy.
In the latter case, it should be stapled together.

Notes
1. Photocopied books are not allowed in classroom.
2. Deadline for volunteer withdrawal is on Wednesday, June 01, 2016
3. Exam dates are subject to change.

Assignments
Assignment Week

Chapter
1 One
2 Two
3 Eighteen
4 Three
5 Four
6 Five
7 Six
8 Eight

Assignment Details
Multiple Choice Questions
Problem 1-26, 1-27
Multiple Choice Questions
Multiple Choice Questions
Multiple Choice Questions
Problem 3-23, 3-24, 3-27
Multiple Choice Questions
Problem 4-22, 4-23, 4-26
Multiple Choice Questions
Problem 5-31, 5-32, 5-34, 5-36
Multiple Choice Questions
Problems 6-25, 6-27
Multiple Choice Questions