Audit II Course Outline

Course Outline

This course is the second part of a two-part course series designed to prepare CMAs to take and pass the Ontario Public Accountants Council’s licensure exam. Students develop their understanding of current practical auditing, with awareness of current research and the current business environment.
Major parts of the course focus on elements of the context in which auditing is carried out, including such topics as:
• The reasons for auditing
• Auditing problems (e.g., liability and other current issues)
• Auditing practice, which includes:

o audit planning

o internal control

o audit evidence

o audit procedures

o information technology, and

o audit completion and reporting

Objectives

To complete this auditing course, you will need to be able to:

1. Explain the reasons for external audits and their nature and scope.
   
2. Discuss the auditing environment, including explaining the nature of the audit expectation gap and explaining the effects of an auditor's professional and legal responsibilities.
   
3. Demonstrate your ability to evaluate audit risk and plan an audit.
   
4. Use audit procedures to assess control risk and evaluate internal control.
   
5. Apply judgemental and statistical sampling.
   
6. Describe procedures for the audit of information technology.
   
7. Prepare audit programmes to obtain audit evidence for assertions concerned with transactions and balances.
   
8. Interpret and explain different types of audit reports.
   
9. Discuss current issues in auditing.

To help you understand the role of auditors with a focus on public accountants (external auditors) who audit financial statements. The materials provided will include discussion and consideration of:
• The economic and legal reasons why audits are requested.
• The environment under which audits are conducted.
• The concepts underlying the practice of external auditing.
• The decisions an auditor faces in conducting an external audit.
• The audit process from start to finish.
• The current external auditing environment and likely future changes that will take place in that environment.

Course Sessions

Week	Session Title
1	Fraud Auditing and the Nature of Fraud
2	Overall Audit Plan and Audit Program
3	Audit Sampling Concepts
4	Audit of the Sales and Collection Cycle - Tests of Controls
5	Completing the Tests in the Sales and Collection Cycle
6	Audit of Cash Balances, Payroll and Personnel Cycle, and the Acquisition and Payment Cycle
7	Completing the Tests in the Acquisition and Paymetn Cycle - Verification of the Selected Accounts; Audit of the Inventory and Warehousing Cycle; Audit of the Capital Acquisition and Repayment Cycle
8	Completing the Audit
9	Using Advanced Skills; Internal Auditing and Government Auditing
10	Enterprise Risk Management and Governance
11	International Regulation of Financial Reporting
12	Canadian Regulation of Financial Reporting

The Instructor for this course is Dr. Morley Lemon:

Educational Background
PhD (1975) University of Texas at Austin
MBA (1972) University of Toronto
BA (1961) University of Western Ontario

Professional Designations
Fellow - elected by Institute of Chartered Accountants of Ontario (1985)
Certified Chartered Accountant - Texas (1974)
Chartered Accountant - Ontario (1965)

Academic and Professional Awards
Canadian Academic Accounting Association: L.S. Rosen Outstanding Educator Award (2004)
Institute of Chartered Accountants of Ontario Award of Outstanding Merit (2003)
University of Waterloo Distinguished Teacher Award (1998)
PricewaterhouseCoopers Professorship in Auditing (1993-2004)