Faculty of Business and Economics Department of Economics and Finance

Auditing, Spring 2011; SAT, 09:00-13:00 p.m. Number of credits: 4
Prerequisites: Accounting

Professor: Ilir Binaj CPA, MPA, MBA, EKR
Office hours: 13.30-14:30, Saturday and by appointment Ilir.Binaj-cpa@hotmail.com
06940-62631 (mobile);

Course Description:

This course is intended to be the student’s first exposure to auditing. Some of the topics covered include: Introduction to financial statement auditing, basic auditing concepts, planning an audit, auditing internal controls, sampling tools for audits, reporting and professional responsibilities. By the end of this course, you should develop a feel for the basic concepts of auditing.

Learning Outcomes:

At the completion of the course, the student should be able to:

•   Explain the theoretical foundation that underlies the audit process.
•   Apply basic auditing concepts when resolving audit issues.
•   Demonstrate an understanding of the importance of high quality financial information to

  external users and describe the auditor’s role in providing assurance that the information

  provided to these users is of high quality.

•   Describe the parties involved in a company’s corporate governance, their roles, and how

  the auditor’s interact with these various parties during their audit.

•   Describe the legal and ethical challenges faced by auditors and what they can do to face

these challenges.

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•   Explain the theoretical foundation that underlies the audit process.
•   Demonstrate an understanding of the audit risk model and the role of various types of risk

  in the planning and conducting of an audit.

•   Describe the basic financial statement auditing process, its fundamental concepts, and the

  phases in which an audit is carried out.

•   Apply basic auditing concepts when resolving audit issues.
•   Demonstrate an understanding of how auditor’s plan and perform audits and how internal

  controls fit into the auditor’s responsibilities and performance of the audit.

•   Describe the auditor’s responsibility for fraud detection/reporting.
•   Plan/perform basic audit procedures for specific management assertions related to the

  company’s financial statements.

•   Choose the proper sampling technique to employ to address specific circumstances

  encountered on an audit.

•   Describe the different reports auditors can give and the contents of each of these reports.
•   Select the appropriate form and content of the appropriate auditor’s report based on

  results of audit work performed.

•   Choose the proper sampling technique to employ to address specific circumstances

  encountered on an audit.

•   Assess auditor independence based on the Code of Professional Conduct.

  Required Reading Material:

  Modern Auditing: Assurance Services and the Integrity of Financial Reporting, 8th Edition

  William C. Boynton (California Polytechnic State Univ. at San Luis Obispo), Raymond N. Johnson (Portland State Univ.)
  August 2005, ©2006
  Other materials will be given during the course

  Class schedule:

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* The instructor reserves the right to make appropriate alternation of the above tentative schedule
Course Requirements
Attendance is mandatory. If a student is absent for more than 20% of the course (i.e. 12 hours) then a grade of “F” will automatically be awarded. An excused absence must be discussed with the instructor before (when possible) the lecture session to be missed, or immediately upon the student’s return to the following class session.

The class lecture sessions are an integral part of the student’s learning experience and are essential for the students to obtain a mastery of the course material.

Active Participation in class and Assignment are an integral part of the grading system.
Students are advised to read the assigned Chapter before coming to the class. During each class students will be asked to comment on the relevant case studies related to that chapter. The assignments should be submitted within the deadline assigned by the instructor. No late assignment will be accepted unless rare instances in which case no full grade will be granted. There are no make-up or grade –improvement projects available in this class. It is necessary that you take both exams in order to receive a grade in this course. In no case, will a make-up exam be given prior to exam days, and only in very rare instances, will a make-up exam will be allowed after a mid-term exam. There will be no make-up exam for the Final Exam.

1. Appropriate class participations at a beginning of each class students will be asked to discuss and comment on the relevant articles related to auditing. The evaluation of articles discussion will go toward the Appropriate class participations and homework assignment Grading (as per below).

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2.Homeworks

You will be assigned homework throughout the semester to further enhance your learning. The homework will come from the questions that I will sent you after each class. You will be graded on having the homework completed and turned in on time. Homework should be emailed to ilir.binaj-cpas@hotmail.com by the beginning of class on the day indicated in the schedule. Late homework will receive credit unless arrangements are made.

3.Case study:
Individual Assignment:
There will be one take-home individual assignments, based on case study. You are expected to answer to all questions provided with the Case Study. The answers should be no longer than 10 pages (double space, font 12). The instructor will provide the case study during the course. The evaluation of this case study will go toward the Course Project Grading (as per below). Answers should be individual.

4. Exams

You will be given one exams throughout the semester, as well as a comprehensive final. The dates for the exams are listed on the course schedule. Exams must be taken at the regularly scheduled time. You should expect challenging exams including various types of questions (i.e. multiple choice, true/false, short answer, cases etc.). On short-answer questions or cases you should clearly explain your answer.

Grading:
Your grade will be based on the following:

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2.
3.
4.
5.
Total Points: 100%

Appropriate class participations 5% Homework assignment 5% Case study 15% Mid-term exam 30% Final Exam 45%

Grading Scale will be determined as follows:

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Academic Integrity:

Cheating in any form or manner cannot and will not be condoned and it will result in an automatic grade of “F” for the course

Punctuality, appropriate dress code, considerate behavior in the class are required of all students. In event of illness or emergency, contact your instructor in advance to determine whether special arrangements are possible. The University’ rule on academic dishonesty (e.g. cheating, plagiarism, submitting false information) will be strictly enforced.

Please familiarize yourself with the Student Honor Code, or ask your instructor for clarification.
If you feel that you have special learning difficulties, please, make an appointment with Ms. Anxhela Gramo. Ms. Gramo is trained to help students with learning difficulties. She shall provide services to our students just as it is offered to all American Universities.

Technology Expectations

Assignments are to be excel, word-processed and power point. Continuing and regular use of e- mail is expected.
Wiley publisher offers to students access to online quizzes, internet exercises, video library etc. Students are advised to consult these resources. These can be found on line at

http://bcs.wiley.com/he-bcs/Books?action=index&itemId=0471230111&bcsId=2363

February 23, 2012 Ilir Binaj

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