De La Salle University – Dasmariñas

COLLEGE OF BUSINESS ADMINISTRATION

AND ACCOUNTANCY

ACCOUNTANCY DEPARTMENT

COURSE SYLLABUS

COURSE CODE : ACTG414

COURSE TITLE : Practical Auditing
COURSE TYPE : Lecture
COURSE CREDIT : 6 units
PRE-REQUISITES : ACTG309
CO-REQUISITES :
INSTRUCTOR : Arlene J. Saputil
CONSULTATION : TF || 7:00 – 10:00 PM || GSB 106

COURSE DESCRIPTION
This course will expose you to the practical application of auditing standards, techniques and procedures
to a typical independent audit of a service, trading and manufacturing firms. A deep understanding of
these standards, techniques, and procedures as they apply to auditing will create positive impact on your
auditing practices and beliefs. The audit objectives, evaluation of internal control, and audit procedures
applicable to each of the major account in the financial statements will be discussed. The preparation of
working papers, financial statements, and audit reports will also be taken up. The emphasis of this course
is learning how to become a competent auditor through a greater understanding of standards, techniques
and procedures.

This course presents the most complete and up-to-date Philippine Standards on Auditing
(PSA)/International Standards on Auditing (ISA). It will help you transfer the auditing principles to your
own audit practice by making explicit connections between theory and practice and realistic industry
examples.

COURSE LEARNING OUTCOME

1. Identify the effectiveness of internal control design and perform test of control for major
transaction cycles of a service, merchandising and manufacturing concern.
2. Explain the underlying auditing principles for each of the major accounts in the statement of
financial position and statement of comprehensive income by familiarizing yourself with the
current Philippine Standards on Auditing (PSA)/ International Standards on Auditing (ISA).
3. Explain the audit objectives and apply the audit procedures for the audit of major accounts by
solving different auditing problems and cases.
4. Prepare financial statements, notes to financial statements, audit report, and internal control
memorandum by solving audit problems and cases.
LEARNING PLAN
HOURS TEACHING-
LEARNING ASSESSMENT
TOPIC / LEARNING
OUTCOME STRATEGY
WEEK ACTIVITY

 Describe the
nature of the
revenue and
collection cycle.
 Describe the
major classes of
transactions in
the revenue and
collection cycle.
 Identify the
documents and
Revenue and accounting
Collection records used in
Cycle: Test of the revenue and
Controls and 3hrs/ collection cycle.
Substantive Wk1  Identify essential
Tests of elements of  Assigned
Transactions internal control students to
over sales, sales discuss their
adjustments and understanding
cash receipts on the assigned  Class presentation
transactions. case. of the topic
 Describe how to  Corroboration
 Recitation
apply compliance through
intuitive  Individual/ Group
tests of controls
and substantive questioning of case analysis
tests over the other students.  Long quiz
revenue and  Professor to
collection cycle share how the
transactions. principles are
 Describe the applied in actual
nature of the practice.
expenditure
cycle.
 Describe the
major classes of
transactions in
Expenditure
the expenditure
Cycle: Test of
cycle
Controls and 3hrs/
 Identify the
Substantive Wk1
documents and
Tests of
accounting
Transactions
records used in
the expenditure
cycle.
 Identify essential
elements of
internal control
over acquisitions
 and cash
disbursement
transactions.
 Describe how to
apply compliance
tests of controls
and substantive
tests over the
acquisitions and
cash
disbursements
transactions.
 Identify the
documents and
accounting
records used in
production
activities.
 Identify essential
elements of
internal control
over payroll,
production and
inventory
warehousing
transactions.
 Describe how to
apply compliance
tests of controls
and substantive
tests over payroll,
production and
inventory
warehousing
transactions.
 Describe the
nature of the
financing and
 Assigned
investing cycle.
students to
 Identify the
discuss their
major classes of
understanding
transactions in
Financing and the financing and
on the assigned  Class presentation
case. of the topic
Investing investing cycles.
 Corroboration
Cycle: Test of  Identify essential  Recitation
3hrs/ through
Controls and
Wk2
elements of
intuitive  Individual/ Group
Substantive internal control case analysis
questioning of
Tests of over the  Long quiz
other students.
Transactions transactions in
 Professor to
the financing and
share how the
investing cycles.
principles are
 Describe how to
applied in actual
apply compliance
practice.
tests of controls
and substantive
tests over the
 major classes of
transactions in
these cycles.
 Describe the
auditors’
objective for the
substantive audit
of cash in bank
and on hand.  Corroboration
 Explain the through  Class
nature of the intuitive presentation of
appropriate audit questioning of
the topic
Substantive 9hrs/ procedures to other students.
Tests: Cash Wk3-4 accomplish the  Professor to  Recitation
objectives for the share how the  Case analysis
audit of cash. principles are  Long quiz
 Understand the applied in
preparation of actual practice.
audit working
papers to
document the
audit procedures
for cash.
 Describe the
auditors’
objectives for the
substantive tests
of trade and
notes receivable
and sales
transactions.  Corroboration
 Explain the through  Class
nature of the intuitive presentation of
Substantive appropriate audit questioning of
the topic
Tests: 9hrs/ procedures to other students.
Receivables Wk4-5 accomplish the  Professor to  Recitation
and Sales objective for the share how the  Case analysis
audit of trade principles are  Long quiz
accounts and applied in
notes. actual practice.
 Understand and
prepare audit
working papers
to document
audit procedures
for receivables
and sales.
PRELIMINARY EXAMINATION
 Describe the  Corroboration  Class
auditors’ through presentation of
Substantive
objectives for the intuitive
Tests: the topic
9hrs/ substantive audit questioning of
Inventories and
Wk7-8 of inventories other students.  Recitation
Cost of Goods  Case analysis
and cost of goods  Professor to
Sold  Long quiz
sold. share how the
 Describe the principles are
 nature of the applied in
audit procedures actual practice.
to accomplish the
auditors’
objectives for the
audit of
inventories and
cost of goods
sold.
 Understand and
prepare audit
working papers
to document
audit procedures
for inventories
and cost of goods
sold.
 Describe the
auditors’
objectives for the
substantive tests
of investments in
debt and equity
securities,
marketable and
long-term.
 Describe the
nature of the
audit procedures
Substantive to accomplish the
9hrs/
Tests: auditors’
Wk8-9
Investments objectives for the
audit of
investments in
debt and equity
securities.
 Understand and
prepare audit
working papers
to document
audit procedures
for investments
in debt and
equity securities.
 Describe the
auditors’
objectives for the
substantive tests
of long-lived
Substantive 12hrs/
assets.
Tests: Long- Wk10-
 Describe the
lived Assets 11
nature of the
audit procedures
to accomplish the
auditors’
objectives for the
 audit of long-
lived assets.
 Understand and
prepare audit
working papers
to document
audit procedures
for long-lived
assets.
 Describe the
auditors’
objectives for the
substantive tests
of Prepaid
Expenses and
 Assigned
Deferred
students to
Charges.
discuss their
 Describe the
understanding
nature of the
audit procedures
on the assigned  Class presentation
case. of the topic
Substantive to accomplish the
 Corroboration
Tests: Prepaid auditors’  Recitation
6hrs/ through
Expenses and
Wk 12
objectives for the
intuitive  Individual/ Group
Deferred audit of Prepaid case analysis
questioning of
Charges Expenses and  Long quiz
other students.
Deferred
 Professor to
Charges.
share how the
 Understand and
principles are
prepare audit
applied in actual
working papers
practice.
to document
audit procedures
for Prepaid
Expenses and
Deferred
Charges.
COMPREHENSIVE MIDTERM EXAMINATION
 Describe the
auditors’
 Assigned
objectives for the
students to
substantive tests
discuss their
of liabilities
understanding
 Describe the
nature of the
on the assigned  Class presentation
case. of the topic
audit procedures
 Corroboration
Substantive to accomplish the  Recitation
9hrs/ through
Tests: auditors’  Individual/ Group
Wk14 intuitive
Liabilities objectives for the case analysis
questioning of
audit of  Long quiz
other students.
liabilities.
 Professor to
 Understand and
share how the
prepare audit
principles are
working papers
applied in actual
to document
practice.
audit procedures
for liabilities.
  Describe the
auditors’
objectives for the
substantive tests
of shareholders’
equity
 Describe the
nature of the
audit procedures
Substantive to accomplish the
9hrs/
Tests: auditors’
Wk15-
Shareholders’ objectives for the
16
Equity audit of
shareholders’
equity
 Understand and
prepare audit
working papers
to document
audit procedures
for shareholders’
equity
 Describe the
auditors’
objectives for the
substantive tests
of profit or loss
and
 Assigned
comprehensive
students to
income.
discuss their
 Describe the
understanding
nature of the
Substantive
audit procedures
on the assigned  Class presentation
Tests: case. of the topic
to accomplish the
Accounts in the  Corroboration
4hrs/ auditors’  Recitation
Statement of through
Profit or Los
Wk16- objectives for the
intuitive  Individual/ Group
17 audit of profit or case analysis
and questioning of
loss and  Long quiz
Comprehensive other students.
comprehensive
Income  Professor to
income.
share how the
 Understand and
principles are
prepare audit
applied in actual
working papers
practice.
to document
audit procedures
for profit or loss
and
comprehensive
income.
 Understand the  Assigned  Class presentation
need to evaluate students to of the topic
Evaluation of
audit evidence discuss their  Recitation
Audit Evidence 4hrs/
and Completion Wk17
gathered to understanding  Individual/ Group
support the on the assigned case analysis
of the Audit
conclusions for case.  Long quiz
the auditors’  Corroboration
 report. through
 Know how to intuitive
evaluate audit questioning of
evidence for other students.
sufficiency and  Professor to
appropriateness. share how the
 Know the various principles are
issues that the applied in actual
auditor considers practice.
in completing the
audit.
 Describe the letter
of inquiry to
clients’ legal
counsel.
 Discuss the
contents of the
representation
letter obtained
from client
management.
 Describe the
independent
auditors’ report.
 Know the
requirements
relative to
forming an
opinion on the
financial
statements.
 Assigned
 Know how to
students to
deal with
discuss their
supplementary
understanding
information
presented with
on the assigned  Class presentation
case. of the topic
Forming an the financial
 Corroboration
Opinion and 4hrs/ statements.  Recitation
through
Reporting of Wk17-  Explain the  Individual/ Group
intuitive
Financial 18 circumstance that case analysis
questioning of
Statements would require  Long quiz
other students.
modification of
 Professor to
auditors’ report
share how the
and the effect on
principles are
the auditors’
applied in actual
opinion.
practice.
 Understand with
the form and
content of the
auditors’ report
wen the opinion
is modified.
 Know the
auditors’
responsibility in
relation to other
 information in
documents
containing
audited financial
statements.
COMPREHENSIVE FINAL EXAMINATION

GRADING SYSTEM
CRITERIA PERCENTAGE
Major Exam 30%
Class Performance (Includes Activities done inside the classroom, i.e. Recitation,
Quizzes, Long quizzes, Seat/Board work, Case-study, Role-play) 70%
Class Participation (includes Activities done outside the classroom, i.e.
Assignments, Projects, Research output, and Final product/Performance task)
TOTAL 100%

Semestral grade = [(Prelim grade) + (Midterm grade) + (Final term grade)] / 3

COURSE POLICIES
Class Attendance: A significant portion of your learning is dependent on your participation in, and
contribution to the classroom community. You are expected to be in class, turn in all work on time, and
significantly contribute to the classroom discussion. You may be absent only (due to sickness or
extremely unavoidable circumstances), for a maximum of 22 hours, inclusive of tardiness. All absences
after that shall mean excessive absences, which merits a grade of 0.00.
Assignments: Assignments will be due at the beginning of class unless otherwise indicated.
Assignments turned in after the due date will not be accepted. There is no provision for make up for any
missed assignment.
Seatwork: No book, no seatwork policy is to be followed for the whole semester. There is no
provision for makeup for any missed seatwork.
Quizzes and Examinations: Make up quizzes are given for approved absences only. If you missed any
quiz, you should see me during my consultation hours on the day you report to our class to schedule the
make-up quiz. You will lose the chance to take the special quiz if you fail to take such as scheduled.
Short Quizzes: Short quizzes are to be administered at the start of classes (immediately after the
Gospel reading). It will usually be in the following format: True or False, Multiple Choice
(Theory/Problem Solving), Enumeration or Identification for a minimum of 10 points and a maximum of
20 points, covering immediate past or the next lesson. There is no provision for missed short quiz. This
requirement intends to discipline you in two ways: one, ensuring that you come prepared for the class and
two, practicing punctuality in attendance.
Major Exams: There will be three Major Examinations which include a comprehensive Midterm and
Final Exams. You may take a special examination only if your failure to take such is due to an approved
absence, sickness, or extremely unavoidable circumstances. You are responsible for arranging the
schedule with your subject teacher. Special major examination is given only within one week after the
examination schedule.
Policy on Scholastic Dishonesty: Students must be honest at all times; cheating and plagiarism in any
form will merit a grade of 0.00.
Textbook: The textbook is an essential reference and learning tool. In order to succeed in this course,
you will need to spend time understanding this text in preparation for class. You should bring with you
this book every class meeting as most of the class activities will require its use.
Proper Decorum inside the Class: Cellular/Mobile phones should always be in silent mode during
class hours; the use of cellular phones is prohibited in class unless a special permission is sought. Cellular
phones cannot also be used as calculator during examination. The use of translators is strictly prohibited
during quizzes and major examinations. Civility in the classroom is expected from all members of the
class.
General Concerns: All written requirements should be completed on appropriate working papers with
your name, course/section code, date and type of course requirement. Documents should have a neat,
professional appearance and be stapled in correct sequential order. All written answers/solutions must be
prepared using correct format, grammar, punctuation and spelling. You must provide your own supplies,
including a non-programmable calculator, for use whenever necessary. Only black inked-pen is allowed.
Other Concerns Relative to the Class: Any concern that is relevant to the class should be brought to
the attention of the subject teacher before it is elevated to a higher authority or an outside party. This
would cover, for instance, complaints directed to the subject teacher (manner of teaching, grades, etc.) or
to your classmates. Special arrangements requested due to certain situations (e.g. student’s disabling
condition) may be decided or acted on a case to case basis.
Other matters not provided in the preceding policies concerning this class may be resolved within the
bound of University policy.

REFERENCES

A. Textbook: Cabrera, M.E.B. Applied Auditing (2011 ed.). Manila: GIC

Enterprises

B. References: Knapp, M. C. (2011) Auditing Cases Australia: Cengage Learning

Louwers, T. J. et al. (2011) Auditing and Assurance Services (4th
International Student Ed.) New York: McGraw-Hill/Irwin
Leung, P. et al. (2009) Modern Auditing & Assurance Services
Australia: Wiley

Prepared by:

Arlene J. Saputil
ACTG414 Subject Coordinator

Endorsed: Approved:

Belinda C. Narvaez Mary Felidora Florinor M. Amparo

Chair, Accountancy Department Dean

cf: OVCAR, AEA, CSCS, CSD Curriculum Development Committee, file

 De La Salle University - Dasmariñas
College
DEPARTMENT

PROGRAM LEARNING OUTCOME - COURSE LEARNING OUTCOME

MAPPING TABLE FOR PRACTICAL AUDITING

COURSE CODE : ACTG 414

COURSE TITLE : PRACTICAL AUDITING
COURSE TYPE : LECTURE
COURSE CREDIT : 6
PROGRAM : BSA

Course Learning Outcome Program Learning Outcome

PLO PLO PLO PLO PLO PLO
2 4 6 8 11 12
1. Determine the effectiveness of
internal control design and
perform test of control for
major transaction cycles of a √ √ √
service, merchandising and
manufacturing concern.

2. Explain the underlying auditing

principles for each of the major
accounts in the statement of
financial position and statement
of comprehensive income by
familiarizing yourself with the √ √
current Philippine Standards on
Auditing (PSA)/ International
Standards on Auditing (ISA).

3. Explain the audit objectives and

apply the audit procedures for
the audit of major accounts by
solving different auditing √
problems and cases.

4. Prepare financial statements,

notes to financial statements,
audit report, and internal √
control memorandum by √ √ √
solving audit problems and
cases.

NOTE: Provide a check mark on the areas in which the program learning outcome (PLO) is hit by the
course learning outcome (CLO)