Syllabus-for-auditing-and-assurance-concepts-and-application-1 (1)

DETAILED TEACHING SYLLABUS (DTS) AND INSTRUCTOR GUIDE (IG’S) PHILOSOPHY The PHILIPPINE COLLEGE OF SCIENCE AND TECHNOLOGY is committed to the pursuit of excellence relative to student’s professional growth and development. VISION PHILIPPINE COLLEGE OF SCIENCE AND TECHNOLOGY envisions producing quality graduates fully equipped with knowledge, attitudes, values and skills and who are globally competitive in their chosen profession ever ready to render quality services. MISSION STATEMENT PHILIPPINE COLLEGE OF SCIENCE AND TECHNOLOGY provides quality education to every student through a well-balanced research oriented learning environment that develops critical and creative thinking for maximum development of individual’s talents and capabilities. INSTITUTIONAL OBJECTIVES In pursuit of its Vision and Mission, PHILIPPINE COLLEGE OF SCIENCE AND TECHNOLOGY will achieve the following: 1. Provide programs and activities that will enhance the development of the students physically, intellectually, culturally, emotionally, socially, spiritually and morally. 2. Provide college education opportunities to poor but deserving students through the PHILIPPINE COLLEGE OF SCIENCE AND TECHNOLOGY scholarship grants. 3. Train students with globally competitive technical skills that will make them competent and capable of handling challenges in life. 4. Provide manpower needs of the country with professionally qualified graduates imbued with dignity and high moral values who are mature, self-reliant, responsible and self-discipline citizens. SPECIAL OBJECTIVES To provide the country with globally competit6ive and professionally licensed graduates as integral part of the total manpower needed for the economic development in the national and international levels. Issue Date Revision Status Revision Date

Prepared by: Instructor

Reviewed by: Department Head

Recommended by: ELSE MARIE T. VILLANUEVA, CPA, MBA College Dean

Approved by: ENGR. RAUL GIRONELLA, Sr. VP for Academic Affairs

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COLLEGE OF ACCOUNTANCY AND BUSINESS PROGRAMS

PHILOSOPHY The Philippine College of Science and Technology, College of Accountancy and Business Programs provides excellent trainings in business education in a highly competitive world.

GENERAL OBJECTIVES 1. To develop, implement, evaluate and continually improve programs of business education that enhance administrative competence and entrepreneurial abilities; 2. To develop the professional and technical proficiency of business education students so that they can become effective leaders in their chosen careers.

SPECIFIC OBJECTIVES The above goal will be achieved through the following specific objectives: 1. To provide students with basic concepts of economics, finance, management, marketing and business law; 2. To apply these concepts in business and related professions; 3. To inculcate social responsibilities in business; 4. To develop the entrepreneurial potential of students; and 5. To update students with emerging business trends in consonance with information age.

THREE-YEAR DIPLOMA COURSE IN ACCOUNTANCY PROGRAM OUTCOMES

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The Three-Year Diploma Course in Accountancy aims to provide a framework for developing the skills and knowledge needed for employment and self-employment in the progressively dynamic business environment. The Diploma is developed specifically in recognition of the growing importance of individuals equipped with essential skills and knowledge in accountancy context. The objectives of the program are to prepare students to embark on a career in the accountancy field or to further continuing education at the sub-professional level by providing them:  Knowledge and skills of accounting, economics, management, business law, business communications, numeracy and information technology;  Cognitive, communication and interpersonal skills;  Information technology skills;  An educational experience to pursue life-long learning; and  A strong sense of responsibility as a member of the society.

LEARNING OUTCOMES At the end of this programme, the students should be able to: 1. Demonstrate the understanding of fundamental accounting knowledge and skills for higher level of study, employment or selfemployment. 2. Record financial transactions and prepare financial statements in compliance with acceptable accounting principles for various forms of organisations, be it profit or not-for-profit. 3. Demonstrate good interpersonal and communication skills in order to function as a member of the society. 4. Demonstrate analytical, judgment and critical thinking skills in decision-making and problem-solving in relations with financial information and business operations. 5. Develop values, ethics, and skills necessary to embrace a career in accountancy at sub-professional level and for lifelong learning. COURSE TITLE

AUDITING AND ASSURANCE: CONCEPTS AND APPLICATIONS 1

COURSE CODE

MPC2

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CREDIT UNITS

3

COURSE PREREQUISITE/COREQUISITE

CAE14

COURSE DESCRIPTION

The course introduces the students to the factors affecting the behavior of individuals and groups in organization focusing on the specific factors that tend to explain behavior of individuals, groups, and organizations. Various theories and models of organizational behavior work group behavior, motivation in life and work, and human relations among others are discussed and related to organizational practices and phenomena. REFERENCE:

1. Knechel, Robert W. (2001). Auditing: Assurance & Risk 2. Cabrera, Ma. Elenita B. (2011). Applied Auditing 3. Asuncion, D, Ngina, M, Escala, R. (2016). Applied Auditing

COMPETENCE COURSE INTENDED LEARNING OUTCOMES (CILO’S) At the end of the course, the student shall be able to:

1. Explain the purpose, nature, scope and ethical principles and rules governing the conduct of auditing and assurance in the Philippines including the role, duties and responsibilities of an auditor. 2. Apply audit concepts, skills, tests and techniques in obtaining audit evidence. 3. Develop an audit plan, implement audit procedures and prepare an appropriate audit report based on the audit evidence obtained. 4. Apply auditing skills in non-assurance services and assurance on non-financial information. 5. Analyze typical and contemporary audit and assurance situations by applying conceptual framework on auditing standards, corporate governance, professional ethics and financial reporting. 6. Work productively as part of a team and, in particular, communicate and present information effectively in written and electronic formats in a collaborative environment.

CHECK-UP PERIOD CONTENT/TOPIC

Chapter 1

INTENDED LEARNING OUTCOME (ILO’S)

After the chapter, the

SUGGESTED TEACHING/LEARNING ACTIVITIES (TLAs)

Advanced reading of

REFERENCES AND EQUIPMENTS

1. Knechel, Robert W.

ASSESSMENT TASKS (AT’s)

Check Up recitation 1

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An Introduction to Auditing and Assurance  The value of information in a business enterprise  Accounting, auditing, attestation and assurance  Characteristics of assurance and attestation engagements  Auditor’s decision process  The profession of auditing and assurance: An Overview Chapter 2 The Role of Auditing and Assurance in a Market Economy  Current trends in auditing and assurance  Risk management in a business enterprise

students are expected to: 1. Explain the value of a timely information in a critical decision making. 2. Define an assurance service. 3. Discuss the importance of an assurance service in the accuracy of information. 4. Enumerate the characteristics of assurance and attestation services. 5. Distinguish among auditing, attestation and assurance services. After the chapter, the students are expected to: 1. State the why financial statement audit is necessary. 2. State the importance of assurance services. 3. Explain the reason for the emergence of assurance services

the chapter is encouraged.

(2001). Auditing: Assurance & Risk

Assignments are given in advance.

2. Cabrera, Ma. Elenita B. (2011). Applied Auditing

Peer discussion is encouraged in doing assignments.

Check up quiz 1 Graded participation

3. Asuncion, D, Ngina, M, Escala, R. (2016). Applied Auditing

Lecture/discussion Interactive learning

Advanced reading of the chapter is encouraged.

1. Knechel, Robert W. (2001). Auditing: Assurance & Risk

Check Up recitation 2

Assignments are given in advance.

2. Cabrera, Ma. Elenita B. (2011). Applied Auditing

Graded participation

Peer discussion is encouraged in doing assignments.

Check up quiz 2

Check up exam

3. Asuncion, D, Ngina, M, Escala, R. (2016). Applied Auditing

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the risk management process the need for external assurance as component of risk management specific examples of such services regulation of the assurance and auditing profession

besides audit. 4. State the nature of risk and discuss the role of assurance and audit services in mitigating risks. 5. Explain the how internal control can reduce the internal risks faced by the company.

Lecture/discussion Interactive learning

PRELIMINARY PERIOD CONTENT/TOPIC

INTENDED LEARNING OUTCOME (ILO’S)

SUGGESTED TEACHING/LEARNING ACTIVITIES (TLAs)

REFERENCES AND EQUIPMENTS

Chapter 3 Transaction Cycles  Categories of transaction cycles  REVENUE AND RECEIPT CYCLE  Forms or documents received, initiated and processed  Summary of functions of departments in revenue cycle  Sales department

After the chapter, the students are expected to: 1. Recall the transaction cycles involving revenue and receipt cycle. 2. Describe the forms and indicate for what transaction or part of the business process they are used. 3. Indicate the functions of every

Advanced reading of the chapter is encouraged.

1. Knechel, Robert W. (2001). Auditing: Assurance & Risk

Assignments are given in advance.

2. Cabrera, Ma. Elenita B. (2011). Applied Auditing

ASSESSMENT TASKS (AT’s)

Preliminary recitation 1 Preliminary quiz 1

Peer discussion is encouraged in doing assignments. Lecture/discussion

Graded participation

3. Asuncion, D, Ngina, M, Escala, R. (2016). Applied Auditing

Interactive learning

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Credit department, inventory control department, shipping department, billing department, accounting department Summary of functions of departments in the receipt cycle Collections Mail room, treasury department, accounting department Other activities Uncollectible accounts Sales and allowances EXPENDITURE AND DISBURSEMENT CYCLE Forms, documents Summary of functions of departments User department, purchasing

department involved in the transaction cycle. 4. Identify what form is issued/prepared by every department.

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department, receiving department, accounts payable department, treasury department Chapter 4 Cash and Accrual Basis  Cash basis accounting  Accrual basis of accounting  Comparison between cash and accrual basis of accounting

After the chapter, the students are expected to: 1. Compare cash basis with accrual basis of accounting in terms of when income is earned and when expenses are incurred. 2. Determine the difference between accrual and cash basis of accounting in terms what is recorded as income earned and expenses incurred. 3. Determine what adjustments should be made in order to effect on the financial statements and convert them to

Advanced reading of the chapter is encouraged.

1. Knechel, Robert W. (2001). Auditing: Assurance & Risk

Students answer questions, exercises and problems at the end of the chapter.

2. Cabrera, Ma. Elenita B. (2011). Applied Auditing

Preliminary recitation 2 Preliminary quiz 2

Peer discussion is encouraged in doing assignments.

Graded participation Preliminary exam

3. Asuncion, D, Ngina, M, Escala, R. (2016). Applied Auditing

Lecture/discussion Interactive learning

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accrual accounting and vice versa.

MIDTERM PERIOD CONTENT/TOPIC

INTENDED LEARNING OUTCOME ILO’S)

SUGGESTED TEACHING/LEARNING ACTIVITIES (TLAs)

Chapter 5 Correction of Errors  Errors  Prior period errors  Accounting treatment of prior period errors  Basic concept in the correction of errors  Working capital, types of errors  Errors on financial statement  Counterbalancing errors  Omissions  Other errors and their effects Chapter 6 Substantive Test of Cash  Management assertions

After the chapter, the students are expected to: 1. Narrate what errors are and their effects on financial statements. 2. Make correcting entries. 3. Solve the problems and exercises given at the end of each chapter.

Advanced reading of the chapter is encouraged.

1. Knechel, Robert W. (2001). Auditing: Assurance & Risk

Midterm recitation 1

Assignments are given in advance.

2. Cabrera, Ma. Elenita B. (2011). Applied Auditing

Graded participation

Peer discussion is encouraged in doing assignments. Lecture/discussion

REFERENCES AND EQUIPMENTS

ASSESSMENT TASKS (AT’s)

Midterm quiz 1

3. Asuncion, D, Ngina, M, Escala, R. (2016). Applied Auditing

Interactive learning

After the chapter, the students are expected to: 1. Discuss the risk affecting cash

Advanced reading of the chapter is encouraged.

1. Knechel, Robert W. (2001). Auditing: Assurance & Risk

Midterm recitation 2 Midterm quiz 2

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The different assertions on classes of transactions, events for the period under audit Assertions about account balances at the end of the period Assertions about presentation and disclosure Audit objectives Audit procedures Other topics on cash audit

2.

3.

4.

5. 6.

because of its nature. Name the different assertions of management. Provide entries and adjusting entries to make corrections. Prepare bank reconciliation and correcting entries. Prepare a proof of cash. Determine the correct amount of cash at the end of the period.

Assignments are given in advance. Peer discussion is encouraged in doing assignments. Lecture/discussion

2. Cabrera, Ma. Elenita B. (2011). Applied Auditing

Graded participation Midterm exam

3. Asuncion, D, Ngina, M, Escala, R. (2016). Applied Auditing

Interactive learning

SEMI-FINAL PERIOD CONTENT/TOPIC

Chapter 7 Cash and Cash Equivalents  Summary of GAAP

INTENDED LEARNING OUTCOME (ILO’S)

After the chapter, the students are expected to: 1. Compute the

SUGGESTED TEACHING/LEARNING ACTIVITIES (TLAs)

Advanced reading of the chapter is encouraged.

REFERENCES AND EQUIPMENTS

1. Knechel, Robert W. (2001). Auditing: Assurance & Risk

ASSESSMENT TASKS (AT’s)

Semi-final recitation 1 Semi-final quiz 1

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on cash Definition of cash on hand and cash in bank Other cash items Cash equivalents Petty cash fund: imprest fund system and fluctuating fund system Bank reconciliation and forms

Chapter 8 Substantive Test of Receivables and Sales  Audit procedures for receivables and sales  Reconciliation of subsidiary ledger with general ledger  Confirmation of receivables and review of subsequent cash receipt  Notes receivable and its related interest  Allowance for

correct amount of cash and cash equivalents at the end of the period. 2. Compute the correct amount of deposit in transit, outstanding checks and other items needed to get the right amount of cash per books and per bank. At the end of the chapter, the students are expected to: 1. Define and classify receivables. 2. Compute the correct amount of receivables at the end of the period. 3. Explain the procedure in the confirmation of receivables. 4. Determine the correct amount of allowance for bad debts.

Assignments are given in advance. Peer discussion is encouraged in doing assignments. Lecture/discussion

2. Cabrera, Ma. Elenita B. (2011). Applied Auditing

Graded participation

3. Asuncion, D, Ngina, M, Escala, R. (2016). Applied Auditing

Interactive learning

Advanced reading of the chapter is encouraged.

1. Knechel, Robert W. (2001). Auditing: Assurance & Risk

Semi-final recitation 2

Assignments are given in advance.

2. Cabrera, Ma. Elenita B. (2011). Applied Auditing

Graded participation

Peer discussion is encouraged in doing assignments. Lecture/discussion

Semi-final quiz 2

Semi-final exam

3. Asuncion, D, Ngina, M, Escala, R. (2016). Applied Auditing

Interactive learning

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doubtful accounts Accounts receivable and sales cutoff Receivables denominated in foreign currencies Analytical procedure Other audit considerations

FINAL PERIOD CONTENT/TOPIC

INTENDED LEARNING OUTCOME (ILO’S)

Chapter 9 Loans and Receivables  Receivables and their classification  Initial recognition of receivables  Revenue recognition issues for sale of goods  Sale and repurchase agreements  Sale to distributors or other intermediate parties  Installment sales

After the chapter, the students are expected to: 1. Determine the correct amount of receivables at the end of the period. 2. Properly account for cash and receivables considering the freight terms. 3. Compute percentage of bad debts expense. 4. Properly compute

SUGGESTED TEACHING/LEARNING ACTIVITIES (TLAs)

REFERENCES AND EQUIPMENTS

ASSESSMENT TASKS (AT’s)

Advanced reading of the chapter is encouraged.

1. Knechel, Robert W. (2001). Auditing: Assurance & Risk

Final recitation 1

Assignments are given in advance.

2. Cabrera, Ma. Elenita B. (2011). Applied Auditing

Graded participation

Peer discussion is encouraged in doing assignments.

Final quiz 1

3. Asuncion, D, Ngina, M, Escala, R. (2016). Applied Auditing

Lecture/discussion Interactive learning

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Initial and subsequent measurement Other related topics

Chapter 10 Inventories/Substantive Test of Inventories and Cost of Sales  Audit objectives  Audit procedures for inventories and cost of sales  Observation during inventory count and test counts  Confirmation of inventories held by others  Reconciliation of inventory summary sheet with general ledger

the amount of other related items like bad debts, interest income. 5. Compute the amount of cash received in the assignment, factoring and in discounting of own note. After the chapter, the students are expected to: 1. Discuss the audit objectives in relation to the audit procedures undertaken in the substantive test of inventories and cost of sales. 2. State the management’s responsibility and the auditor’s in the inventory count. 3. State the procedure in the confirmation of

Advanced reading of the chapter is encouraged.

1. Knechel, Robert W. (2001). Auditing: Assurance & Risk

Final recitation 2

Assignments are given in advance.

2. Cabrera, Ma. Elenita B. (2011). Applied Auditing

Graded participation

Peer discussion is encouraged in doing assignments.

Final quiz 2

Final Exams

3. Asuncion, D, Ngina, M, Escala, R. (2016). Applied Auditing

Lecture/discussion Interactive learning

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Year-end inventory/purchas e cutoff Valuation in accordance with accounting policies Lower of cost or net realizable value test Determine whether any inventories had been pledged and review purchase commitment Perform analytical procedures

inventories held by others. 4. Explain the importance of inventory cut-off. 5. Record inventory at lower of cost or net realizable value. 6. Determine whether inventories have been pledged.

COURSE ASSESSMENT: (Criteria for Grading) Methods of Evaluation: Students will be evaluated according to the following: 05 Examinations (Check-Up Examination, Preliminary Examination, Mid-Term Examination, Semi-Final Examination and Final Examination); 14 Recitations (Preliminary Recitation, Mid-Term Recitation, Semi-Final Recitation and Final Recitation); 14 Quizzes; and 10 Assessment The final course grade will be computed according to the following formula: 1. Eighty percent (80%) attendance or better 2. Seventy five percent (75%) general average based on the grading system as follows: a. Prelim Grade- (5%) (Assignment) + (10%) (Recitation) + (50%) (Quizzes) + (35%)[(Checkup exam + Prelim Exam)/2] b. Midterm Grade- [(Prelim Grade)+ (TMG)/2]; where :TMG= (5%) (Assignment) + (10%) (Recitation) + (50%) (Quizzes) + (35%) (Midterm Exam) c. Final Grade = (Midterm Grade) + 2 (TFG)/3; where TFG = (5%) (Assignment) + (10%) (Recitation) + (50%) (Quizzes) + (35%)[(S-Final Exam + Final Exam)/2]

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COURSE POLICIES (Requirements) A. Attendance Procedure: Attendance will be taken at the beginning of each class. Students are expected to attend every class. Students are responsible for all materials covered during any absence and assignments must be completed by the due date for credit. The absence of four or more lectures and/or labs will result in a “DROPPED” grade. Missed exams will require proof of extenuating circumstances for any make-up consideration; B. Absence due to illness: if you are sick, DO NOT ATTEND THE CLASS. Contact the instructor by email, telephone, or cellphone to discuss how will you keep up with the coursework assignments and complete the tasks assigned. C. Methods of Instruction: Methods will include lectures and demonstrations that discuss the terms, concepts and formulate of the assigned chapter. During the lecture a quizzes about the basic concepts of each chapter will be given. The student is expected to read one chapter and solve the assigned problems each week. This will require an average of five hours of study outside of the classroom each week. The previously assigned problems will be collected for grading and the solution will be derived in class. This process is designed to help the student thoroughly understand the conce3pts and applications of the material covered. D. Academic Honesty: All students are expected to behave with academic honest. It is not academically honest, for example, to misrepresent another person’s worlds or ideas as one’s own, to take credit for someone else’s work or ideas; to cope and paste material from another document or from the internet, to accept help on a test or to obtain advanced information or confidential test materials or to act in a way that might harm another students’ chance for academic success. When the instructor believes that a student has failed to maintain academic honesty, he or she may be given an “F” grade, either for the assignment, quiz, examination, or the course depending upon the severity of the offense.

COURSE TITLE

AUDITING AND ASSURANCE: CONCEPTS AND APPLICATIONS 1

SY/TERM OF EFFECTIVITY SY 2018-2019

PREPARED BY ELSE MARIE T. VILLANUEVA, CPA, MBA DEAN

APPROVED BY ENGR. RAUL B. GIRONELLA, MBA VICE PRESIDENT FOR ACADEMIC AFFAIRS

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