VILLANOVA UNIVERSITY

School of Business
Department of Accountancy
Domenic J. Finelli
ACC 2430-100, AUDITING (Spring, 2017)
Tuesday and Thursday, 1:00 to 2:15 p.m. Room 2046 Bartley
Office Hours: Tuesday and Thursday, 2:30 to 4:00 pm, in Prof Bordens office
E-Mail: domenic.finelli@villanova.edu
Telephone: (610) 220-1034 (cell)
I. COURSE MATERIALS
Textbook:
1 - Text: Auditing and Assurance Services, (Louwers,Ramsay,Sinason,Strawser and Thibideau) 6th edition,
2015.
2 - Blackboard: Course announcements, materials and other information will be posted on the course web site.
3 - PCAOB Auditing Standards Available at www.pcaobus.org
4 - IDEA - Software must be downloaded on individual student laptops. Refer to the IDEA attachment for
instructions.

II. COURSE BACKGROUND

The focus of the course is on the professional duties and responsibilities of external auditors, although the role
of internal auditors will also be discussed. External auditors are subject to a complex set of demands from the
client, their firm, regulatory authorities, and the public at large. While investors, creditors, and regulators expect
external auditors to preserve the reliability of the financial statements of publicly held companies; audit clients
demand value-added advice, industry expertise, and a timely audit report. In addition, the competitive
atmosphere surrounding public accounting requires that a premium be placed on audit efficiency. Balancing the
demands of the public, the client, and the accounting firm is very challenging task for public accountants.

III. COURSE OBJECTIVE

We will be studying the theory and practice of professional auditing. The successful completion of the course
provides a basic understanding of the nature of financial auditing, the writing of audit reports, the
responsibilities of auditors, generally accepted auditing standards, procedures related to the planning of an
audit, the assessment of materiality and audit risk, the collection of audit evidence, internal control evaluation,
analytical procedures, fraud assessment, assurance services, and professional ethics..

IV. COURSE FORMAT AND PREPARATION FOR CLASS

Class sessions will consist of lectures, case studies and discussion. In advance of each class you should have
read the assigned material. All assigned exercises and problems are to be completed before the assigned class
period begins.
The power point slides and other materials related to the topics to be covered during class will be posted to the VU
Blackboard site sufficiently in advance of each class for you to go through them as well. You may wish to print out
these slides and other materials for your use in taking notes during the class.

V. EVALUATION AND GRADING

First test
Second test
Modules B Assignment
IDEA Group Project
Risk and Estimate Group Project
Final Examination
Total

22%
22%
6%
12%
12%
26%
100%

Letter grades are determined based upon the following scale:

93 and above:
90%-92.999%:
87%-89.999%:
83%-86.999%:

A
AB+
B

80-82.999%: B77%-79.999%:
73%-76.999%:
70%-72.999%:

67%-69.999%:
D+
C+
63%-66.999%:
C
60%-62.999%:
CBelow 60%: F

D
D-

VI. ASSIGNMENT ON MODULE B, PROFESSIONAL ETHICS

You are responsible for self-study of this material. We will not go over this material in class. A quiz on this
material will be administered on February 2, 2017. You are required to read Module B, Ethical Codes of Conduct,
pages 595 through 614, Up to Rule 302, Contingent Fees. You should also read the Power Point slides available on
Blackboard.

VII. DATA ANALYTICS GROUP PROJECT USING IDEA SOFTWARE

Financial auditing is rapidly being transformed into an environment characterized by the availability of Big
Data and advanced analytical tools by entry level professionals on the audit engagement. As a result, students
are expected to join public accounting firms having completed coursework related to the use of data and
analytical tools. A critical issue that students must grasp is how to identify the right data to analyze given a set
of facts and circumstances, and then how to present data analyses in a persuasive format while documenting
conclusions.
IDEA is one of the leading analytical tools being used in the audit environment. IDEA provides a platform to
illustrate the steps that auditors need to take related to data and data analysis while completing the financial
statement audit.

For this group project students should form teams of 3 people each and provide the team member names at the
start of class on January 19, 2017. Detailed instructions on the Group Project are attached to the syllabus and
also posted on Black Board. A report on the work of the team is due at the start of class on April 20, 2017.
VIII. GROUP PROJECT ON IDENTIFYING AND ANALYZING RISK FACTORS AND CRITICAL
ACCOUNTING ESTIMATES
Identifying and assessing risk is an important aspect of the audit process. Further, once done, the auditor needs
to prepare an audit program that effectively addresses those risks. A good place to start on identifying risks
faced by an audit client is the Annual Report on Form 10 K filed with the SEC. The purpose of this assignment
is to help you identify risks and develop audit palns to effectively address those risks during the audit.
For this group project, students should form teams of 5 people each and provide the team member names at the
start of class on January 19, 2017. Detailed instructions on the Group Project are attached to the syllabus and
alos posted on Black Board. A report on the work of the team is due at the start of class on April 6, 2017 and
each team will be asked to present its findings in class.

IX. OTHER MATTERS

Prerequisites: This course is restricted to Accounting majors and minors. It is the students responsibility to be
certain that the prerequisites have been successfully completed. If at any time during the semester it is
determined that a student has not completed the prerequisites, the student can be administratively dropped from
the course without credit or tuition refund.
Preparation: Each student is expected to read all assigned materials in advance. The schedule of class topics
included with this syllabus sets forth the advance preparation requirements for each class. For most classes, we
will go over a Self Test to reinforce our discussions. Each Self Test is posted to Black Board. You should
print and complete each in advance of each class. On occasion, you may be asked to turn in your completed
Self Test at the beginning of class.
Class Participation and other: Students are encouraged to volunteer in class. Those students who do not
volunteer may be called upon at random.
Attendance: A reasonable number of unexcused absences is understandable.
Missed Tests or Final Examination: No make-up tests are allowed for either of the first two tests or for the
final examination. If a student with a valid excuse fails to take either of the two scheduled tests, the grade for
the missed test will be added to the weighting of the other test. For example, is you miss the first test, your
second test would be worth 44% of your course grade (22% + 22% = 44%). Failure to take the Final
Examination will result in a zero grade for the Final Examination.
Academic Integrity Policy: The Code of Academic Integrity of Villanova University addresses cheating,
fabrication of submitted work, plagiarism, handing in work completed for another course without the
instructors approval, and other forms of dishonesty. For the first offense, a student who violates the Code of
Villanova University will receive 0 points for the assignment. The violation will be reported by the instructor to
the Deans office and recorded in the students file. In addition, the student will be expected to complete an
3

education program. For the second offense, the student will be dismissed from the University and the reason
noted on the students official transcript. When you turn in a project or exam, you should be able to write and
sign the following sentence: I have neither given nor received assistance on this test/project. This notice is not
intended as a threat. It is intended to make you aware of the universitys academic integrity policy. You are
studying to work in an industry where integrity is perhaps the most important quality needed for success. I
certainly hope and expect there will be no violations of the integrity policy.
Physical and Learning Disabilities: It is the policy of Villanova to make reasonable academic accommodations
for qualified individuals with disabilities. If you are a person with a disability please contact me after class or
during office hours and make arrangements to register with the Learning Support Office by contacting 610-5195636 or nancy.mott@villanova.edu as soon as possible. Registration is needed in order to receive
accommodations. The University policy is available at
http://vpaa.villanova.edu/handbook/policies/Disabilities.html.
Attachments:
Schedule of Class Topics and Assignments
IDEA Group Project Information
Risk Factots and Critical Estimate Information

TENTATIVE SCHEDULE OF CLASS TOPICS AND ASSIGNMENTS

AUDITING (ACC 2430): Spring, 2016
Day

Chap

Topic

Advance Text Readings and

Assignments for Class

Jan14

Read Chapter 1

Jan 21

Mod B

Course Introduction,
Overview of an Audit and Services
Professional Ethics

Jan 28

Professional Auditing Standards

Read Module B and complete

assignment
Read Chapter 2

Feb 4

Engagement Planning

Read Chapter 3

Feb 11

Management Fraud and Audit Risk

Read Chapter 4

Feb 18

Read Chapter 5

Feb 25
Feb 29 Mar 4
Mar 10
Mar 17

Risk Assessment: Internal Control

Evaluation
Employee Fraud and Cash
Break No Classes
Test 1
Revenue and Collection Cycle

Mar 23-28
Mar 31

Read Chapter 6
Chapters 1-5
Read Chapter 7

Easter Recess- No Classes

Apr 7
Apr 14

11

Acquisition and Expenditure Cycle and

Production Cycle
Test 2
Completing the Audit

Apr 21

12

Audit Reports

Read Chapter 12

Review
Final Exam

Review and Wrap Up

Apr 28
May 5

8&9

Read Chapters 8 and 9

Chapters 6, 7, 8 and 9
Read Chapter 11