X UNIVERSITY

College of Accountancy
Bachelor of Science in Accountancy
Course Syllabus in Auditing Theory Review
2nd Trimester, S.Y. 2011-2012
I.

Course Code:

Acctg30

II.

Course Description:
The course is a three-unit subject intended to provide the students with concepts underlying the public accounting practice and the auditor as a professional.
This subject tests the candidates conceptual knowledge and understanding of assurance and related services performed by professional accountants.
Candidates should know and understand the nature of assurance and related services particularly independent audits of financial statements, the responsibilities of
professional accountants; the audit process; audit objectives, evidence, procedures, auditing standards, and the elements of the independent auditors report. In all
the areas included, the candidate shall apply the Philippine Standards on Auditing (PSA) and other regulatory laws and regulations in effect at the time of
examination.
Credit Units
Contact Hours
Prerequisites

III.

: 3 units
: 50 hours, 1 meeting per week, 4 hours per meeting
: Accounting 20/21

Course Outcomes:
CO #

Description

PO1

PO2

PO3

PO4

PO5

PO6

PO7

State, explain and discuss the nature of auditing, the type of audit, the characteristics if
accounting, as a profession, the significant provisions of the Revised Accountancy Law, and
the operations of public accounting firms.

Explain and discuss the nature of audit objectives, evidences, procedures and techniques and
apply the concepts and principles of internal control and techniques used to review and
evaluate internal controls.

IV.

Demonstrate the concepts and methodology of statistic audit sampling and prepare audit
reports under varying circumstances.

Course Contents:
Objectives

Topics

1. Discuss the essence of auditing and

assurance services in business.
2. Identify the elements of assurance
engagements and cites actual examples of
assurance engagements
3. Discuss the basic principles of auditing
4. Discuss the classification of audit and auditors

Fundamentals of Auditing and

Assurance Services
A. Introduction to assurance
engagements
1. Nature, objective and elements
2. Types of assurance
engagements
3. Assurance service vis--vis
attestation services
B. Introduction to auditing
1. Nature, philosophy, and
objectives
2. Types of audits
The Professional Practice of Accounting
A. Practice of accounting profession
1. Accounting as a profession
2. Organizations that affect public
accounting
a. Regulatory government
agencies
b. Standard-setting bodies
3. Regulation of the public
accounting practice
a. RA 9298
b. SRC Rule 68

1. Discuss the attributes of a profession

2. Discuss the environment of the accounting
professions
3. Identify and discuss the impact of regulatory
agencies to the exercise of accountancy
4. Discuss the different standard setting bodies
that affects the practice of accountancy
5. Discuss the regulations set forth under the
Code of Professional Ethics
6. Discuss requirement of the Philippine
Accountancy Act of 2004

B. The CPAs professional

responsibilities
1. Philippine Standards on Auditing
2. Code of Ethics
3. Quality control
4. PSA 240 Fraud, Error, and

# of meetings

Grading
Period

Prelims

3 meetings

Prelims

Teaching
Learning
Activities
Lecture/
PPT Presentation
Problem-solving
Board Exercises

Assessment
Tools
Assignments
Seatwork
Quizzes
Recitations

Lecture/
PPT Presentation
Problem-solving
Board Exercises

Assignments
Seatwork
Quizzes
Recitations

Noncompliance
1. Discuss the overview of the audit process.
2. Rationalize and discuss the importance of risks
assessment procedures in the preengagement stage of the audit.
3. Discuss the elements of audit planning and its
scope.
4. Discuss the importance of supervision

1. Discuss the procedures used to obtain

understanding of an entity and its environment.
2. Discuss the required understanding of the
entitys internal control.
3. Discuss assessing the risks of material
misstatement at the financial statement level
and at the assertion level.
4. Discuss development of responses to
assessed level of risks at the financial
statement level and assertion level.

PRELIM EXAMINATION
OCTOBER 21-22, 2011
The Financial Statements Audit Client
1 meeting
Midterms
Acceptance, Audit Planning,
Supervision and Monitoring
A. The Generally Accepted Auditing
Standards (GAAS)
B. Overview of the audit process
C. Pre-engagement procedures
D. Audit Planning Requirements
1. Planning requirements
a. Knowledge of the business
b. Preliminary analytical
procedures
c. Materiality
d. Assessing and managing audit
risks
e. Overall audit plan and audit
program
f. Considerations of the work of
others (experts, internal auditor,
other independent auditors)
2. Direction, supervision and review
PSA 315 and PSA 330 Understanding
the Entity and its Environment Including
its Internal Control and Assessing the
Risks of Material Misstatement
A. Industry, regulatory and other
external factors, including the
applicable financial reporting
framework
B. Internal control
a. Understanding and
documentation
b. Assessment of control risks
a) Test of controls
b) Documentation
C. Assessing the risks of material
misstatement
1.

1 meeting

Midterms

Lecture/
PPT Presentation
Problem-solving
Board Exercises

Assignments
Seatwork
Quizzes
Recitations

Lecture/
PPT Presentation
Problem-solving
Board Exercises

Assignments
Seatwork
Quizzes
Recitations

D. Communicating with those

charged with governance and
management
1. Define and contrast audit objectives,
procedures, evidence and documentations
2. Discuss reliability of audit evidence
3. Discuss audit procedures and working paper
documentations

Audit Objectives, Procedures,

Evidences and Documentation
A. Nature and significance
B. Evidential matters
C. Audit procedures / techniques
D. Audit working papers

1.5 meeting

Midterms

Lecture/
PPT Presentation
Problem-solving
Board Exercises

Assignments
Seatwork
Quizzes
Recitations

1. Discuss the nature and type of sampling

approaches
2. Distinguish statistical and non-statistical
sampling
3. Discuss the application of audit sampling for
test of controls
4. Discuss the application of audit sampling for
substantive tests
5. Discuss projection and estimation of errors in a
given population
6. Discuss evaluation of sampling results

Audit Sampling
A. Basic audit sampling concepts
1. Nature and purpose
2. Non-statistical and statistical
sampling
3. Attribute and variables sampling
technique
4. Sampling and non-sampling risk
5. Testing procedures which do not
involve sampling
B. Factors affecting sample design
C. Factors affecting sample size
D. Sample selection methods
E. Evaluation of sample results

1.5 meeting

Midterms

Lecture/
PPT Presentation
Problem-solving
Board Exercises

Assignments
Seatwork
Quizzes
Recitations

Lecture/
PPT Presentation
Problem-solving
Board Exercises

Assignments
Seatwork
Quizzes
Recitations

1. Discuss and identify engagement wrap-up

procedures
2. Discuss the auditors post audit responsibilities

MIDTERM EXAMINATION
NOVEMBER 23 24, 2011
Completing the Audit / Post-Audit
1 meeting
Finals
Responsibilities
A. Completing the audit and audit
report preparation
B. Post-audit responsibilities
1. Subsequent discovery of facts
2. Subsequent discovery of omitted
procedures

1. Discuss the preparation of audit reports

2. Discuss the rules of modification of the audit
reports
3. Distinguish issues that do not lead to
modification of the opinion and those that do
not
4. Discuss reporting on comparatives

Reports on Audited Financial

Statements
A. The unqualified auditors report
B. Basic elements of the unqualified
auditors report
C. Modified auditors report
1. Matters that do not affect the
auditors opinion
2. Matters that do affect the auditors
opinion
D. Report on comparatives

1 meeting

Finals

Lecture/
PPT Presentation
Problem-solving
Board Exercises

Assignments
Seatwork
Quizzes
Recitations

1. Identify and discuss other assurance and nonassurance engagements that are provided by
professional accountants in practice
2. Discuss professional requirements imposed by
applicable standards for each line of service

Other Assurance and Non-assurance

Services
A. Procedures and reports on special
purpose audit engagements
1. Audit of financial statements
prepared in accordance with a
comprehensive basis of
accounting other than GAAP in
the Philippines
2. Audit of a component of financial
statements
3. Reports on compliance with
contractual agreements
4. Reports on summarized financial
statements
B. Other assurance engagements:
procedures and reports
1. Examination of prospective
financial information
2. Engagements to review financial
statements
C. Non-assurance engagements
1. Agreed-upon procedures
regarding financial information
2. Compilation of financial
information

1 meeting

Finals

Lecture/
PPT Presentation
Problem-solving
Board Exercises

Assignments
Seatwork
Quizzes
Recitations

FINAL EXAMINATION

DECEMBER 14 -17, 2011

V. Teaching-Learning Activities (TLA)

TLA
Description
1
Lecture presentation
2
Problem-solving
3
Board exercises

CO1
60%
30%
10%

CO2
60%
30%
10%

CO3
70%
20%
10%

CO1
10%
50%
40%

CO2
10%
50%
40%

CO3
10%
50%
40%

VI. Assessment Tools (AT)

AT
1
2
3

Description
Assignments and seatwork
Examinations
Recitations and quizzes

VII. Computation of Scores:

Prelims:
Prelim Grade = 10%SW/A + 40% QUIZ + 50% EXAM
Midterms:
Raw Midterm Grade = 10% SW/A + 40% QUIZ + 50% EXAM
Midterm Grade = 50% Prelim Grade + 50% Midterm Raw Score
Finals:
Raw Final Grade = 10% SW/A + 40% QUIZ + 50% EXAM
Final Grade = 50% Midterm grade + 50% Raw Final Grade
VIII. References:
A. Textbook:
Acl 657.450218599 P538 2008 PICPA-MMR Committee on CPE (2008), Philippine Standards on Auditing,
Acl 657.45 R358 2010

Ricchiute, David N. Auditing and Assurance Services 7th Edition, South Western College Publishing, Cincinnati, Ohio 2010
Ireneo, Jose M., Ireneo, Shirley C., and James, George R. (2011), Auditing and Assurance Principles
Salosagcol, Jekell, Tiu, Micheal and Hermosilla, Roel, Auditing Theory and Concepts, GIC Enterprises & Co., Inc. 2008

B. Books:
Acl 657.45076 B63 2008

Bobadilla, Apolinario D. and Ocampo, Reynaldo R. (2008 Edition), Reviewer in Auditing Theory, Lares Bookstore, Manila

Acl 657.45076 C112 2008

Cabrera, Ma. Elenita Balatbat, Comprehensive CPA Reviewer in Auditing Theory, GIC Enterprises & Co. Inc, Manila 2008

Acl 657.45076 W618 2008

Whittington, O. Ray and Delaney, Patrick R. (2008 Edition), Wiley CPA Exam Reviewer Auditing and Attestation, John Wiley &
Sons, Inc., Hoboken, New Jersey
Code of Ethics for Professional Accountants in the Philippines (Effective June 30, 2008)
Philippine Standards on Auditing (PSAs), Auditing and Assurance Standards Council
Philippine Standards on Assurance Engagements (PSAEs), Auditing and Assurance Standards Council
Philippine Standards on Related Services (PSRSs), Auditing and Assurance Standards Council
Philippine Standards on Review Engagements (PSREs), Auditing and Assurance Standards Council
Philippine Standards on Quality Control (PSQCs), Auditing and Assurance Standards Council
Practice Statements, Auditing and Assurance Standards Council
R.A. 9298 Philippine Accountancy Act of 2004 (Effective May 13, 2004)
Rules and Regulations for the Accreditation of Accounting Teachers (Effective June 20, 2008)

C. Online References:
www.prboa.com
www.aasc.org.ph
www.picpa.com.ph

Prepared by:

Evaluated by:

Approved by:

Noted by: