De Anza College

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De Anza College

    De Anza College

    Business-CS Division, Accounting Dept.

    Christopher Kwak, CPA, Professor of Accountancy

    Spring 2004

    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:

Campus Email:

    Instructor‟s course Homepage:

Course Materials:

    ? 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

    don‟t understand.

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.

Student Responsibilities:

? 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.

Christopher Kwak Page 6 5/15/2010

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