THE UNIVERSITY OF TEXAS AT DALLAS

AIM 6334 – AUDITING

Summer 2005
Section 521 – Tuesdays – 6:00p.m. – 10:00p.m. – SOM 1.117

Instructor: Tiffany Bortz, CPA

Office: SOM 4.223
Phone: 972-883-4774
Email: tabortz@utdallas.edu
Office Hours: Mondays from 3:30 p.m. to 4:30 p.m.
Tuesdays from 9:45 a.m. to 10:45 a.m.

Course Description:

This course introduces the basic concepts, philosophy, standards, procedures, and practices of auditing.
Topics include generally accepted auditing standards, the changing role of the independent auditor,
professional conduct and ethics, auditor’s reporting responsibilities, risk assessment, internal control,
evidential matter and management fraud.

Learning Objectives:

This course has three primary objectives:

(1) Develop an understanding of auditing and assurance services.
(2) Develop an understanding of the auditor’s reporting obligations and responsibilities.
(3) Develop an understanding of the ethical and legal issues of providing professional services in a
regulatory
environment.

Course Prerequisite:

AIM 6330 – Corporate Financial Reporting (or equivalent)

Course Materials:

Textbook: Auditing & Assurance Services, Fourth Edition, by Messier, Glover, and Prawitt

Contemporary Auditing: Real Issues and Cases, Fifth Edition, by Knapp

Attendance:

It is critical to your success that you attend each class and take notes during the lectures. You should come
to class prepared, which means that you should have read the assigned material and reviewed the lecture
notes prior to attending class. Lecture Notes will be available on WebCT for download. Office hours are not
a substitute for coming to class; accordingly, I will not go over material covered in class with you if you have
missed class. As a courtesy to others, please turn off your cellular phones while in the classroom.

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 THE UNIVERSITY OF TEXAS AT DALLAS
AIM 6334 – AUDITING
Summer 2005
Section 521 – Tuesdays – 6:00p.m. – 10:00p.m. – SOM 1.117

Homework:

I suggest that you work all of the “Review Questions” and “Multiple-Choice Questions” for each chapter.
While there will be no points allocated to homework other than the case assignments, there is a direct
correlation between working problems and performing successfully on examinations.

Solutions to the “Review Questions” and “Multiple Choice Questions” are posted on WebCT.

Case Assignments:

Throughout the semester, we will discuss ten cases from Contemporary Auditing: Real Issues and Cases.
You are required to choose five of these selected cases and prepare a written analysis. Each case is
valued at 20 points. The case assignments will be graded on clarity of thought process, grammar, spelling
and technical content. All assignments must be typed and must use Standard English with correct grammar
and punctuation. The case assignments are due at the beginning of class. NO EXCEPTIONS. If for any
reason, you are unable to attend class on the day a case assignment is due, assignments will be accepted
by email (preferably attached as a MS Word or Excel File) as long as the case arrives before 6:00 p.m. on
the due date. Do not email case assignments unless you are unable to attend class.

Exams:

There will be three examinations in this course. These examinations are not cumulative, and the format
of each exam will be multiple choice questions. You will need an 882 Scantron for each exam.

Makeup exams are given only for excused absences, which must be determined prior to the exam. Excused
absences may be given for verifiable medical or family emergencies. Written documentation must be
provided to qualify for an “excused absence”. Students who do not show up for an exam without making
arrangements with me prior to the exam will receive a zero. I do not guarantee that the level of difficulty of
the makeup exam will be comparable to the exam given at the scheduled time. I will determine the date and
time of the makeup exam, and you must make arrangements to take it at that time.

Grades:

Your final grade in this course will be determined as follows:

Examination 1…………………… 100 points

Examination 2…………………… 100 points
Examination 3…………………… 100 points
Assigned Cases………………… 100 points

TOTAL 400 points

Translation of the total score into a letter grade will be based on the instructor’s judgment. The letter grade
will reflect each student’s performance relative to the class and standards expected of graduate students.

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 THE UNIVERSITY OF TEXAS AT DALLAS
AIM 6334 – AUDITING
Summer 2005
Section 521 – Tuesdays – 6:00p.m. – 10:00p.m. – SOM 1.117

Technical Websites:

Below is a list of technical websites you may need to refer to while taking this course:

• www.aicpa.org
• www.sec.gov
• www.pcaobus.org
• www.tsbpa.state.tx.us

Academic Dishonesty:

Students are expected to be above reproach in all scholastic activities. Students who engage in academic
dishonesty are subject to disciplinary penalties, including the possibility of failure in the course and dismissal
from the university. “Scholastic dishonesty includes, but is not limited to cheating, plagiarism, collusion, the
submission for credit of any work or materials that are attributable in whole or in part to another person,
taking an examination for another person, any act designed to give unfair advantage to a student or the
attempt to commit such acts.” Regents’ Rules and Regulations, Part One, Chapter VI, Section 3, Subsection
3.2, Subdivision 3.22. Since such dishonesty harms the individual, all students and the University, policies
on scholastic dishonesty will be strictly enforced.

Please be aware of the general guidelines listed below:

• All academic exercises require individual, independent work.

• Complete academic exercises on time and in the required format (hardcopy, electronic, etc.).
• Retain confirmation of document delivery if submitted electronically.

Please be aware of the following guidelines related to examinations:

• You may be asked to leave all personal belonging at the front of the room (this includes cell
phones).
• You may be asked to present your UTD Comet Card.
• You may be asked to remove your hat.
• You may be asked to change seating before or during the examination.
• You must ask permission for any lavatory use during the examination.

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 AIM 6334
COURSE OUTLINE

WK DATE TOPIC CH CASE ASSIGNMENT

1 5/17/05 Introduction to Auditing and 1

Assurance Services

The Financial Statement Auditing 2

Environment

2 5/24/05 Professional Conduct and 19

Independence
Case 1.9 – ZZZZ Best Company
Risk Assessment and Materiality 3

3 5/31/05 Audit Evidence and Documentation 4 Case 2.2 – Flight Transportation

Case 5.6 – Kroger Properties

4 6/7/05 EXAMINATION 1

5 6/14/05 Audit Planning and Audit Tests 5

(Include Advanced Module 1)
Case 3.1 – The Trolley Dodgers
Internal Control 6

6 6/21/05 Internal Control – Role in Audit of 7

Financial Statements Case 3.2 – Howard Street Jewelers
Audit Sampling: Application to 8
Tests of Controls

7 6/28/05 EXAMINATION 2

8 7/5/05 Auditing Revenues and 10 Case 2.3 – J.B. Hanauer

Receivables Case 4.4 – Oak Industries

9 7/12/05 Auditing Cash and Investments 16

Case 2.4 – CapitalBanc Corporation
Completing the Engagement 17

10 7/19/05 Audit Reports and Reports on 18 Case 7.2 – National Medical

Internal Control Case 7.3 – Texas Drug Warehouse

11 7/26/05 EXAMINATION 3