UNIVERSITY OF THE EAST

UNIVERSITY MISSION STATEMENT:

Imploring the aid of Divine Providence, the University of the East dedicates itself to the service of youth, country and God,
and declares adherence to academic freedom, progressive instruction, creative scholarship, goodwill among nations and
constructive educational leadership.

Inspired and sustained by a deep sense of dedication and a compelling yearning for relevance, the University of the East
hereby declares as its goal and addresses itself to the development of a just, progressive and humane society.

UNIVERSITY VISION STATEMENT:

As a private non-sectarian institution of higher learning, the University of the East commits itself to producing, through
relevant and affordable quality education, morally upright and competent leaders in various professions, imbued with a strong
sense of service to their fellowmen and their country.

INSTITUTIONAL LEARNING OUTCOMES:

In pursuit of its mission, the University seeks

1. To create curricular programs attuned to the constantly changing needs and challenges of the youth within the
context of a proud nation and enriched culture;
2. To produce innovative research output, the true hallmark of institutional integrity and dynamism;
3. To render relevant and committed service to the community, the nation, and the world.

Page 1 of 18
 COLLEGE OF BUSINESS ADMINISTRATION

COLLEGE MISSION STATEMENT:

The College of Business Administration commits itself to prepare the youth through relevant, responsive and ethical
curricular programs into morally upright, competent and well-rounded entrepreneurs, accountants and business managers.

COLLEGE VISION STATEMENT:

The College of Business Administration of the University of the East aims to be recognized as one of the top five
producers of highly competent graduates who possess the knowledge, skills, values and attitudes that prepare them to compete
on an even keel in both the local and global workplace in the 21st century.

COLLEGE GOALS:
The College of Business Administration is committed to provide equal opportunities in quality business education,
consistent with the UE Mission and our national aspiration, and geared towards global interdependence.

PROGRAM OUTCOMES:
1. Demonstrate the necessary knowledge, understanding, attitude and skills required to successfully pass the CPA
Licensure Examination.
2. Deliver impressive and convincing presentation through effective communication skills in listening, writing and
speaking.
3. Behave in accordance with the highest standards of professionalism, integrity, transparency and accountability.
4. Perform research using the body of knowledge in the Accounting discipline.
5. Collaborate in a team environment by applying the interpersonal skills required of an accountant working in groups or
as a team player.
6. Ability to demonstrate the process of identifying, gathering, measuring, summarizing and analyzing financial data in
business organizations, including the use of computer based information.

COURSE SYLLABUS IN
ASSURANCE PRINCIPLES, GOOD GOVERNANCE AND PROFESSIONAL ETHICS
Page 2 of 18
 School Year 2018 to 2019

Course Code BAC 319

Course Title ASSURANCE PRINCIPLES, GOOD GOVERNANCE AND PROFESSIONAL ETHICS

Lecture 6units
Credit Units
Laboratory / Studio NONE
Course Code BAC 315
Pre-Requite(s)
Course Title Financial Accounting and Reporting 3

Course Description:
This course is designed to expose students both to the demand for and the supply of the profession’s flagship service- financial
statement audits- and to the nature of the value-added assurance services which decision makers demand in the information age. Topics
include: nature of the accounting profession, auditing and assurance fundamentals: relationship among assurance, attestation, and audit
services , consulting versus assurance services; types of attestation services (agreed-upon procedures engagement and review
engagement); types of audit (internal, external or financial audits, government audits or special purpose audits); relationship of accounting
and auditing; other services(operational audits, compliance and other non-attest services); professional standards: assurance standards
and attestation and auditing standards; public sector regulation of accounting practice and legal liability; the framework of financial
statements auditing; risk-based approach as auditing methodology; audit evaluation and planning, including the concept risk and
materiality; assessing internal controls, and tests of controls including internal controls in computer- based business systems; performance
of an audit: evidence collection, analysis and substantive tests; reporting; reports on assurance services, attestation services and financial
statements audits; and completing the audit including communication with board of directors and management concerning internal control
weaknesses. Also discussed in detail are the basic professional values and the Code of Ethics for Professional Accountants and SEC’s
Code of Corporate Governance.

Course Outcomes

Upon completion of the course, the learner will be able to:

1. Define and describe the nature of the accounting profession, auditing and assurance fundamentals: relationship among assurance,

Page 3 of 18
 attestation, and audit services, consulting vs. assurance services.
2. Identify the types of attestation services; types of audit; relationship of accounting and auditing; and other services
3. Explain the professional standards: assurance standards and attestation and auditing standards; public sector regulation of
accounting practice and legal liability; the framework of financial statements auditing; risk-based approach as auditing methodology;
audit evaluation and planning, including the concept risk and materiality; assessing internal controls, and tests of controls including
internal controls in computer- based business systems;
4. Explain fairly the conduct of financial audits, specifically evidence gathering and report preparation
5. Examine internal control in determining audit scope
6. Demonstrate knowledge in tests of controls and sampling in preparation for their use in auditing practice
7. Discuss the basic professional values and the Ethics for Professional Accountants and SEC’s Code of Corporate Governance.

COURSE CONTENT

Teaching Learning
Week Hours Learning Outcomes Topics Assessment Tasks
Activities

1st 6 At the end of the lesson, the learner Course Orientation  Discussion  Quiz/Test
1. Orientation on the University mission  Discussion  Multiple choice
will be able to:
and vision, College goals and  End of class quiz questions
 Define the university and college
objectives, program goal, objectives  Assignment
mission and vision statements,
and outcomes  Class
college program objectives and
Overview of the course participation(recit
outcomes
Learning expectations ation)
 Differentiate assurance and non-
Orientation on the requirements of the
assurance engagements in course
auditing and assurance services
 Identify example of assurance 2. Fundamentals of Auditing and
and non-assurance engagement Assurance
 Explain the nature, purpose and  Assurance Engagements
scope of an audit  Non- Assurance
 Discuss the different types of Engagement
audit and auditors as well as the  Attestation service
general types of audit (external,
 Auditing
internal, government and special
Page 4 of 18
 COURSE CONTENT

Teaching Learning
Week Hours Learning Outcomes Topics Assessment Tasks
Activities

 Elements of high-level
assurance engagement
3. The nature, purpose and scope of an
audit
 The historical development
of auditing
 The ethical case of auditing
1. Philosophy of an audit
2. Definition and objective
3. Why independent
auditing is necessary
 The notion of accountability,
stewardship and agency
 The social concept of an
purpose audits.)
audit and its changing role
 Philippine Standards on
Auditing(PSAs)
4. Types of audit [financial statements
audit, operational audit, compliance
audit]
a. Types of auditors
b. General types of audit
 External independent
financial statements audit
 Internal audit
 Government auditing
 Special purpose audit

2nd 6 At the end of the lesson, the learner 1. The nature of the accounting  Discussion  Quiz/Test
profession  Assignment  Multiple choice
will be able to:
2. Standard-setting and regulation in  End- of-class questions
 Review the nature of the accounting practice quiz  Assignment
Page 5 of 18
 COURSE CONTENT

Teaching Learning
Week Hours Learning Outcomes Topics Assessment Tasks
Activities

accounting profession
 Illustrate professionalism
 As required by the
accounting profession set
forth in the professional
standards; and
 Discuss what public
accounting is as a
profession, including the
management of public
accounting practice
 Class
participation(recit
ation)
3. Public accounting profession
4. Philippine Standards on Auditing
5. Management of public accounting
practice

6 1 Code of Ethics for Professional

3rd
At the end of the lesson, the learner Accountants in the Philippines  Discussion  Quiz/Test
2. Auditors Legal Liability  Case study  Multiple choice
will be able to:
3. SEC Code of Corporate Governance  Assignment questions
 Describe the CPAs  End-Of-Class  Case Study
professional responsibilities quiz  Class
based on the Philippine participation(recit
Standards on Auditing, Code ation)
of ethics for professional
accounts and auditor’s legal
liability;
 Explain SEC Code of
Corporate Governance
Page 6 of 18
 COURSE CONTENT

Teaching Learning
Week Hours Learning Outcomes Topics Assessment Tasks
Activities

 Quiz/Test
At the end of the lesson, the learner  Discussion
 Multiple choice
will be able to:  Case study
questions
 Assignment
 Illustrate knowledge of  Case Study
1. Republic Act 9298 or “ The  End-Of-Class
Republic Act 9298 or “ The Philippine Accountancy Act of 2004”  Class
quiz
Philippine Accountancy Act and its implementing rules and participation(recit
4th 6 of 2004” and its ation)
regulations
implementing rules and
regulations 2. Auditor’s responsibility on fraud,
error and non-compliance
 Explain auditor’s
responsibility on fraud, error
and non-compliance

6 The Framework of Financial Statements
5th
At the end of the lesson, the learner Audit  Discussion  Quiz/Test
1. Audit planning, supervision and  Case study  Multiple choice
will be able to:
monitoring  Assignment questions
 Demonstrate knowledge on  Scope and purposes of audit  End-Of-Class  Case Study
audit planning, supervision planning quiz  Class
and monitoring  Audit planning considerations participation(recit
 Evaluate an audit plan, planning the audit work ation)
based on risk-based audit  Planning a repeat engagement
approach  Supervising and monitoring the
Identify the different kinds of engagement
income that a non-resident citizen  Special considerations in the audit
may earn and to determine of small entities
whether it is taxable or not.  Consideration of environmental
 Determine the allowable matters in the audit of financial
Page 7 of 18

Week Hours Learning Outcomes
deductions for non-resident
citizens
 Compute the net taxable income,
income tax due of non-resident
citizens.
3 The Framework of Financial Statements
6th
At the end of the lesson, the learner
will be able to:
 Evaluate an audit plan
based on risk-based audit
approach
 Design a simple risk-based
audit plan
Identify the different kinds of income
that a resident alien may earn and to
determine whether it is taxable or
not.
 Determine the allowable
deductions for resident and non-
resident alien.
 Compute the net taxable income,
COURSE CONTENT
Teaching Learning
Topics Assessment Tasks
Activities
statements
2.A risk based audit approach
 Introduction
 Application of the concept of
materiality to audit
 A risk based audit approach
 Assessing inherent risk and control
risk at the assertion level(inherent
risk, control risk, detection risk)
 Using the audit risk model to
determined the nature, timing, and
extent of audit procedures
 Audit risk in the small business
 Managing audit risk(business risks,
by transaction cycle
Audit(continued)  Discussion  Multiple choice
3. A risk based audit approach  Case study questions
(continuation of week 5)  Assignment  Group work
 introduction project/assignme
 application on the concept of nt
materiality to audit  Class
 a risk-based audit approach participation(recit
 Assessing inherent risk and control ation)
risk at the assertion level(inherent
risk, control risk, detection risk)
 Using the audit risk model to
determined the nature, timing, and
extent of audit procedures
 Audit risk in the small business
 Managing audit risk(business risks,
by transaction cycle
Page 8 of 18
 COURSE CONTENT

Teaching Learning
Week Hours Learning Outcomes Topics Assessment Tasks
Activities

income tax due of resident and

non-resident aliens.

PRELIM EXAMINATION

Gathering and Evaluating Audit

Evidences
At the end of the lesson, the learner
will be able to:
 Explain and discuss the
nature, types, and sources
7th 6 of audit evidence
 Explain, discuss and
demonstrate at a fair level of
competence the concepts
and methodology of
evidence gathering
1. Audit procedures(nature of audit
procedures, categories and
description of audit procedures  Quiz/Test
used to obtain audit evidence,  Multiple choice
relationship of audit techniques and  Discussion
questions
assertions, type of audit tests,  Case study
 Case Study
deciding the number of items to  Assignment
 Group work
audit, timing of testing, selecting the  Group work
project
audit procedures that will be project
 Class
applied)
participation(recit
2. Audit evidence( Nature and
ation)
significance, general categories of
evidential matter, sufficient
appropriateness of evidence,
relationship of types of evidence to
audit objectives, audit evidence-
practical problems in an audit of
financial statements)

8th 6 At the end of the lesson, the learner Gathering and Evaluating Audit  Quiz/Test
will be able to explain, discuss and Evidences(continuation)  Discussion  Multiple choice
demonstrate at a fair-level of  Case study questions
Documentation: audit working papers  Assignment  Case Study
competence the concepts and

Page 9 of 18
 COURSE CONTENT

Teaching Learning
Week Hours Learning Outcomes Topics Assessment Tasks
Activities

 Nature, purpose, contents,

identification of preparer and
reviewer
 Types, relationship of working
papers to financial statements,
working paper files  Group work
 Mechanics of working paper, project
 Group work
computer generated working  Class
project
papers, ownership and custody participation(recit
methodology of evidence gathering. of working papers ation)
 Confidentiality of working papers,
changes to audit documentation
in exceptional circumstances
after the date of auditor’s report.

9th 6 Study and Evaluation of Internal Control  Discussion  Quiz/Test

1. Basic concepts and elements of
At the end of the lesson, the learner
will be able to:
 Explain the basic concepts
and elements of internal
control;
 Determine the consideration
2. Consideration of internal control in a
of internal control in a
financial statement audit;
 Case study  Multiple choice
internal control (introduction, nature  Assignment questions
and purpose, elements, limitations  Group work  Case Study
of internal control, concept of project  Group work
reasonable assurance, illustration of  project
a typical internal control system)  Class
participation(recit
financial statements audit(objective, ation)
stages of study and evaluation of
internal control, assessing the
preliminary level of control risk,
obtaining evidential matter to
support the assessed level of
Page 10 of 18
 COURSE CONTENT

Teaching Learning
Week Hours Learning Outcomes Topics Assessment Tasks
Activities

control risk, evaluation of the results

of the evidential matter, determining
the necessary level of detection
risk)

Study and Evaluation of Internal Control

At the end of the lesson, the learner (continued)
will be able to:  Quiz/Test
3. Non-Resident Foreign Corporations  Multiple choice
 Determine how audit procedures How adequacy or inadequacy of questions
 Discussion
are affected by the adequacy or internal control affects audit  Case Study
 Case study
inadequacy of internal control; procedures  Group work
 Assignment
10th 6  Discuss the importance of Communications with boards of project
 Group work
effective communication with directors and management  Class
concerning internal control project
BOD and management participation(recit
concerning internal controls; and weaknesses detected in audits ation)
 Describe the audit considerations Audit considerations relating to
relating to entities using service entities using service organizations
organizations

11th 3 Audit Sampling  Discussion  Quiz/Test

1. Basic audit sampling concepts(nature  Case study  Multiple choice
and purpose, why auditors sample,  Assignment questions
At the end of the lesson, the learner
testing procedures which do not involve  Group work  Case Study
will be able to:
sampling vs. non-sampling risk, non- project  Group work
 Apply the sampling in tests statistical sampling, attribute and project
of controls variables sampling techniques, factors  Class
 Identify the attributes affecting sample design, sample participation(recit
selection methods, sample size, ation)
sampling in audit,
evaluation of sample results, detailed
attestation, and services
audit sampling plans)
engagements, including
statistical and non-statistical
sampling and attribute
Page 11 of 18
 COURSE CONTENT

Teaching Learning
Week Hours Learning Outcomes Topics Assessment Tasks
Activities

estimation sampling

Audit Sampling (continuation)

 At the end of the lesson, the
learner will be able to
identify the attributes
sampling in audit,
attestation, and services
engagements, including
statistical and non-statistical
12th
sampling and attribute
estimation sampling.
4 techniques, non-statistical sampling for
Audit sampling for substantive tests(risk in
 Quiz/Test
substantive tests, probability proportional-to-
 Multiple choice
size sampling, classical variables sampling, questions
variations of classical variables sampling,  Discussion
 Case Study
steps in variables sampling for substantive  Case study
 Group work
 Assignment
tests, applications of the steps in variables project
 Group work
sampling plan, using PPS technique for  Class
project
substantive test, reaching foe a conclusion participation(recit
ation)
in PPS sampling, application of classical
variables sampling plan using classical
substantive tests)

MIDTERM EXAMINATION
2

Page 12 of 18
 COURSE CONTENT

Teaching Learning
Week Hours Learning Outcomes Topics Assessment Tasks
Activities

Audit Program Applications:

1. Test of controls(sales and collections
process, purchases and
disbursement process, payroll  Quiz/Test
process, production process,  Multiple choice
inventory warehousing process, questions
 Discussion
communication of performance,  Case Study
At the end of the lesson, the
improvements and observations in  Case study
learner will be able to :  Group work
internal control to management)  Assignment
13th project
 Demonstrate tests of controls to  Group work
3 2. Substantive tests transactions(sales  Class
various transaction cycle project
transactions, cash receipts participation(recit
transactions, purchases ation)
transactions, cash disbursements
transactions, production transaction,
inventory warehousing transactions,
non-routine transactions, audit of
accounting estimates)

14th 3 Audit Program Applications (continued)  Discussion  Quiz/Test

1.Subsatntive tests of balances(assets,  Case study  Multiple choice
At the end of the lesson, the liabilities, owners equity, revenue and  Assignment questions
learner will be able to : expenses)  Group work  Case Study
Determine the general tax rules 2.Auditing fair value measurements and project  Group work
applicable to commercial disclosures project
partnership. 3.Using the works of others  Class
 Demonstrate substantive tests of participation(recit
transactions and balances to  U Using the work of another auditor, ation)
various accounts expert)/ specialists
 Discuss auditing fair value  c Communication of audit matters
measurements with those charged with governance
 Explain the work of others in  A Audit considerations relating to
Page 13 of 18
 COURSE CONTENT

Teaching Learning
Week Hours Learning Outcomes Topics Assessment Tasks
Activities

performing the audit work

entities using service organizations

Completing the Audit/ Post-Audit

Responsibilities
1. Related party transactions( related
party relationship, audit
procedures, disclosures
requirement)

2. subsequent events review( events  Quiz/Test

At the end of the lesson, the occurring up to the date of the  Multiple choice
learner will be able to; auditor’s report, facts discovered questions
 Discussion
after the date of the auditor’s  Case Study
 Case study
 Discuss the conceptual view of  Group work
report and before the financial  Assignment
15th 3 the audit process; the nature and project
significance of each step in the statements are issued, facts  Group work
 Class
audit and assurance service discovered after the financial project
participation(recit
process in the completing the statements have been issued ation)
audit;
 Explain the post-audit
responsibilities
3. Letters of inquiry/ review for
contingent liabilities (audit inquiry
letter to client’s lawyer)
4. Evaluation of going concern
assumption(audit procedures)

16th 6 Completing the Audit/ Post-Audit  Discussion  Quiz/Test

At the end of the lesson, the Responsibilities (continuation)  Case study  Multiple choice
learner will be able to:  Assignment questions
 Discuss the conceptual view of 1. Management
Page 14 of 18
 COURSE CONTENT

Teaching Learning
Week Hours Learning Outcomes Topics Assessment Tasks
Activities

representations(documentation,
basic elements)
2. Analytical procedures
3. Evaluating findings, formulating an
the audit process, the nature and
opinion and drafting the audit  Case Study
significance of each step in the
report(making a final assessment of  Group work
audit and assurance service
materiality and audit risk, evaluating project
process in the completing the  Group work
audit;
the results, sufficiency and  Class
project
adequacy of evidence, adequacy of participation(recit
 Explain the post-audit
disclosures and conformity with ation)
responsibilities.
statutory and regulatory
requirements, evidence supporting
.
the auditor’s opinion, drafting the
audit report and other deliverables
to clients)

17th 6 Reports on Audited Financial  Discussion  Quiz/Test

At the end of the lesson, the Statements  Case study  Multiple choice
learner will be able to identify and 1.Independent auditor’s report on a  Assignment questions
explain the different types of complete set of general purpose  Group work  Case Study
reports and give the appropriate financial statements (auditor’s project  Group work
situations when these reports report on financial statements, project
should be rendered. elements of the auditor’s report in  Class
an audit conducted in accordance participation(recit
with PSAs, auditor’s report, ation)
auditor’s report for audits
conducted in accordance with both
ISAs and PSAs, unaudited
supplementary information
presented with audited financial
statements

2. Modifications to the independent

auditor’s report (matters that do not

Page 15 of 18
 COURSE CONTENT

Teaching Learning
Week Hours Learning Outcomes Topics Assessment Tasks
Activities

affect the auditor’s report –

emphasis of a matter; matters that
do not affect the auditor’s report –
qualified opinion, disclaimer of
opinion, adverse opinion;
circumstances that may result in
other than an unqualified opinion)

18th 6 FINAL EXAMINATION

Page 16 of 18
 Course References

Textbook Cabrera, Ma. Elenita B. Principples of Auditing and Other Assurance Services. Manila : GIC Enterprise c20114
Other References Louwers, Timothy J; Ramsay, Robert J; Sinason, David H; Strawson, Jerry R; Thibodeau, Jay C.

Auditing and Assurance Services, USA: McGraw-Hill/Irwin Inc, c2012.

Ng, Mark Francis G. Auditing and Assurance Principles, Standards and Fundamentals. Manila: Rex Book Store,
c2012.

Philippine Standards on Auditing (PSAs), PSQCs Framework, PAPs, PSREs, PSAEs, PSRSs, approved as of
January 31, 2010, Auditing Standards and Practices Council and Board of Accountancy.

Revised Code of Ethics for Professional Accountants.

Salosagcol,J.G.; Tiu, M.F. and Hermosilla, Roel E. Auditing Theory. Manila: CRC-ACE, c2014

SEC Code of Corporate Governance. 2010

Whittington, O. Ray; Kurt, Pany. Principles of Auditing and Other Assurance Services, USA: McGraw-Hill/Irwin, Inc,
c2012

Grading System COMPUTATION OF GRADES

Let: PX = Prelim Exam TMG = Tentative Midterm Grade PG = Prelim Grade

MX = Midterm Exam TFG = Tentative Final Grade MG = Midterm Grade
FX = Final Exam FG = Final Grade
AQ1 = Average Quiz – Preliminary Period CS1 = Class Standing – Preliminary Period
AQ2 = Average Quiz – Midterm Period CS2 = Class Standing – Midterm Period
AQ3 = Average Quiz – Final Period CS3 = Class Standing – Final Period

Preliminary Grade (PG) = (PX x 40%) + (AQ1 x 40%) + (CS1 x 20%)

Midterm Grade (MG)
TMG = (MX x 40%) + (AQ2 x 40%) + (CS2 x 20%)

MG = 2TMG + PG
3
FINAL Grade (FG)
TFG = (FX x 40%) + (AQ3 x 40%) + (CS3 x 20%)

Page 17 of 18
 FG = 2TFG + MG
3

Course Requirement/s 1. Class Standing 2. Average Quizzes 3. Major examination

a recitation a. prelims
b. assignments/seatwork b. mid-term
c. finals

Resources Calculator, projector

Consultation Hours As posted

PREPARED BY:
REVIEWED BY:

ANGELITO C. DESCALZO Name of industry Practitioner

VERIFIED BY: RECOMMENDING APPROVAL: APPROVED BY:

Solita D. Dranto Fe B. Reyes Veronica N. Elizalde

Department Chair, ACLAT Associate Dean, CBA Dean, CBA

Page 18 of 18