De Anza College
Business-CS Division, Accounting Dept.
Christopher Kwak, CPA, Professor of Accountancy
Course Syllabus for Accounting 58- Intro to Financial Auditing
Direct phone number with voice mail on campus (office is located at Forum #9): 408.864.5727
Course Instructional Web site: http://cvc2.org/webct
Campus Email: KwakChris@fhda.edu
Instructor‟s course Homepage: http://faculty.deanza.edu/kwakchris
? Arens, Elder, Beasley, Essentials of Auditing and Assurance Services, 2003, Prentice Hall In
addition to the text, a few short articles will be assigned for in-class discussion. These articles
are either linked throughout course web site or will be distributed in class.
? Access to Internet in order for up-to-date course learning materials and learning activities
? Other supplemental materials with the textbook, study guide, streaming videos, or on-line
quizzes can be helpful depending on individual learning style or preference.
Required Reading: Wall Street Journal
Tell me, I’ll forget
Show me, I may remember
Involve me, I’ll understand
Philosophy of Learning & Course Expectations:
In a learning environment, everyone becomes a teacher and everyone becomes a student.
Learning is your personal responsibility. The instructor is a mentor, facilitator, and coach in your
active and unique learning process.
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Class sessions will be informal and class participation is strongly encouraged. Questions
pertaining to the course or relating to the accounting/finance/business field are also welcome
throughout the semester. Class lectures will be focused on helping students understand the
“WHY‟s” (the concept behind the mechanics) rather than the mere mechanics of the subject
matter. Please do not use memorization as a substitute for understanding.
After observing students for many years and drawing from my own experiences as a student, I
believe that students learn best by actively questioning and explaining. In this course, I
encourage you to join in class discussions and bring questions to class. This means that in order to receive the maximum benefits out of classroom time, you will need to read the assigned topics
and attempt the homework before coming to class.
It is obvious that you will both need and be expected to attend all class meetings. You also must be prepared to take part in class discussions. This does not mean that you should have all topics mastered and learned; otherwise there would be no reason for class. It does mean that you should not be hearing about the topic for the first time in class.
Again, class attendance is essential since in-class case discussions and group interactions will
enhance concepts presented in the course. You will become successful by helping others become
successful. One of most effective ways of learning any subject matter is to teach it to someone
else. By actively engaging in-group learning, you will be practicing the attributes of questioning, organizing, and connecting knowledge. Also, you will be learning to learn and to teach others,
and you will be developing interpersonal skills you will need for successful careers in
accounting or any other business field.
Learning is a collaborative process between all the members of the class. I hope we can help
each other to create a supportive learning environment throughout the term.
Purpose of Course:
Auditing encompasses many principles and procedures used to gather evidence to support the
opinion expressed in the “Auditor‟s Report”. This introductory course covers the basic concepts
involved with various types of audits with emphasis on the application of auditing standards and
techniques used in Statutory Audits, Procedural Audits and Operational (Internal) Auditing with
references to special areas of auditing such as Information Systems, government auditing, etc.
The two primary objectives of this introductory course are,
1. To introduce students to the basic concepts underlying auditing and assurance services. 2. To demonstrate how to apply those concepts to audit and assurance services, -with primary
focus on understanding the Big Three Concepts- Risk, Materiality, and Evidential matter-
that underlie the audit/assurance process.
Witnessing recent corporate malfeasances and financial reporting obfuscation events in our nation lately, we all know now that accounting is too important to managers, organizations, and societies to be left to accountants alone. Accounting information is often a basis for decisions.
Accounting reports are often the basis on which the effectiveness of stewardship decisions, and
actions are evaluated.
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Assessment of Student Achievement:
There will be two midterm exams, a comprehensive final exam and five short quizzes. The
lowest score of the five quizzes will be automatically dropped. Grades for the course will be
determined by applying the following weights to the exams, quizzes, case discussions and class
Quizzes 4 @ 5% each 20%
Midterm Exams 2 @ 20% each 40%
Final Exam 40%
Extra Credit Available: Case Discussions and Presentations- up to 20%, equal to the weight of
one of midterms.
To maximize your potential for a good grade, I recommend that you keep up with the reading and
the homework, come to class, participate in the class discussions and ask questions when you
High points for class participation points will be awarded to students whose participation reflects
that they completed the assigned reading and homework prior to class. Keep in mind that quality
of participation is more important than mere quantity.
? Attendance is required: Regular attendance is an obligation assumed by every student at the
time of registration. Late entry or early exits from class are disruptive to the class. Excessive
absences will result in your being dropped from class or your grade being lowered since
a significant portion of your grade is based on in-class participation and group activities. ? If you are absent, it is YOUR responsibility to find out what you missed and obtain any
necessary handouts. You are strongly advised to call a classmate and obtain any class notes
and missed information.
? Withdrawing from the course is your responsibility. If the appropriate forms are not
completed and filed with the Office of Admissions and Records by YOU, you will receive a
failing grade for the course.
? Bring a working calculator, books and course materials to each class meeting. (A three-ring
binder to organize all coursework and materials is strongly recommended)
? Preparation of all assignments is essential to the understanding of the course materials. ? No make-up Exams/Quizzes. Quizzes may be unannounced.
? It is your responsibility to keep track of your grades this semester. Keep a log of all graded
assignments on a separate piece of paper.
Statement on Academic Integrity:
It goes without saying that academic integrity is expected from each student. As such, if there is
a reasonable basis for concluding that a violation of academic integrity has taken place, all
suspected parties would be awarded a course grade of “F”, with a letter to the Dean explaining
why this grade was awarded. It will be up to the students involved to convince the instructor that
the violation did not take place. (Refer to DeAnza College catalog and class schedule.)
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Standards of Classroom Conduct:
There will be many opportunities for voicing opinions during class discussions and group
activities throughout the course. It is expected that there be mutual respect between students in
the classroom. No comments, which are discriminatory or display insensitivity towards
differences based on race, ethnic origin, age, gender, religion, physical disability and sexual
orientation will be tolerated. Also, there is no tolerance for any other behavior, which is
disruptive to the learning environment in the classroom. Any student disruptive to class will be
asked to leave. De Anza College will enforce all procedures set forth in the nondiscrimination
policy in compliance with the Civil Rights Act, and the appropriate remedial and / or disciplinary
steps will be taken when violations occur. (Refer to DeAnza College catalog and class schedule.)
Keys To Success:
1. Commitment: Accounting is not hard, but it‟s hard work. To do well, you should
understand that this course requires a serious time commitment.
2. Preparation: To perform adequately in this course, you must have a thorough understanding
of the text and the homework materials assigned. It is imperative you read the assigned case
and chapter before you come to class. Expect the reading of each Chapter to take at least 2-3
hours to complete.
3. Homework: The homework should be completed to the best of your ability and brought to
class on the date assigned. On occasion there may be difficult problems that you cannot
complete before you class. However, you should still make a legitimate attempt. Allocate
another three to four hours to complete each Chapter‟s homework including the
supplemental assignments handouts prepared by instructor.
4. Exams will be based on the textbook, lectures, and homework assigned. Complete the
homework not just for the calculations but for understanding the underlying concepts and
principles it is conveying. Understanding and interpreting the use of accounting
information is just as important as the calculation of a number. You will be tested on how
well you interpret accounting information, not just on whether you can arrive at the correct
calculation of a number.
5. Team Project: The project will require planning, cooperation and application of analytical
techniques. There are multiple components requiring data collection, financial analysis and
report preparation. The Project may require a significant amount of work but synthesizes
concepts developed throughout the course. Each project component must be completed and
handed-in on the assigned date.
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Tentative Course Calendar with Assignment Schedule:
(Depending on student learning progress, the schedule might be changed or adjusted to maximize the
benefits of student learning.)
WEEK READING ASSIGNMENTS - Due Prior to Chapter Homework NO. Lecture_ Assignments –Due upon
1 Introduction, assurance services, and the CPA profession 1-20, 1-21, Internet 1-2
Sarbanes-Oxley and PCAOB
2 Audit reports -ch.2 2-27, 2-28, 2-31
Audit responsibilities and objectives -ch.5 5-21, 5-24, 5-26, 5-28
3 Audit evidence -ch.6 6-26, 6-27, 6-30
Audit planning and analytical procedures -ch.7
4 Continue on ch.7 7-23, 7-30, 7-34, 7-36
Midterm Exam #1 Review for exam
5 Materiality and risk -ch.8 8-25, 8-30, 8-32, 8-33
6 Internal control and control risk -ch.9 9-24, 9-28, 9-31
7 Overall audit plan and audit program -ch.10 10-25, 10-29, 10-31, 10-32
8 Midterm Exam #2 Review for Exam
9 Audit of the sales and collection cycle: tests of controls 11-24, 11-25, 11-31, 11-33
and substantive tests of transactions -ch.11
Completing the tests in the sales and collection cycle:
accounts receivable -ch.12 12-23, 12-26, 12-27, 12-31
10 Audit sampling (pp. 374-394: tests of controls and
substantive T of T) -ch.13 13-28, 13-29, 13-36, 13-37
Audit sampling (pp. 394-403: tests of details of
balances) –ch.13 13-31, 13-32, 13-33, 13-35
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11 Completing the audit -ch.18 18-24, 18-25, 18-26
Review for Final Study for Final Exam
5 days after the final exam,
12 Finals Week you could send an email
request for course grade.
About the Instructor, Christopher Kwak, CPA:
Licensed CPA in the state of California with over 17 years of industry experience in major firms
such as Hewlett Packard (HP), PriceWaterhouseCoopers, and Chevron USA, specializing in cost
management, financial reporting, mergers & acquisitions, and forensic accounting. Chris Kwak
has held many positions at HP including Senior Corporate Internal Auditor, Senior Financial
Analyst, and Business Control Manager (Division Controller level). He also worked as a Senior
Associate and a manager at PriceWaterhouseCoopers (formerly Coopers & Lybrand), one of the
Big Four (“Final Four for now”) international accounting/consulting firms, specializing in
Mergers & Acquisitions, Financial Reporting, Business Litigation and Investigation services, and
Start-up and Emerging business advisory services.
Current academic postings & professional affiliations:
? Full-time faculty member at De Anza College Business-CS Division.
? Adjunct Professor of Accountancy at S.F. Golden Gate University.
? Adjunct Professor of Accountancy at Saint Mary„s College of California.
? A member of American Institute of Certified Public Accountants and California Society
of Certified Public Accountants.
Chris Kwak wants to be a partner in your learning process to encourage you to be a
passionate, life-long learner.
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