Course guide - Advanced Auditing (RSM 423 F)

Assignment #1

Assignment #2 background paper

Class 1 - Required Readings

Adopting International Standards in Auditing (ISAs) March 2008. "The CICA's Guide to ISAs in Canada".

J. Middlemiss. “From There to Here,” CA Magazine,” June/July 2008, pp. 22-28.

HB 5142, 5095, and Guideline on Applying Materiality and Audit Risk Concepts in Conducting an Audit. (AuG - 41)

“Accountability Standards for Corporate Reporting”, Journal of Accountancy, E.J. Parlock, F.S. Sato, J.A. Yardley, May 1990, pp 94-100.

Class 1 - Optional Readings

Allen, R. D., D.R. Hermanson, T.M. Kozloski, and R.J. Ramsey (2006). Auditor Risk Assessment: Insights from the Academic Literature. Accounting Horizons. June: 157-178.

Class 2 - Required Readings

Ch. 3 SB pages 72-76 (or equivalent) “Reporting on uncertainties and going concern”

Ch. 1 AA

HB 1508 (measurement uncertainties), 3065 (leases), and 3290 (contingencies)

ISA 700 and 701 at www.ifac.org/Store/2008 Handbook (same as CAS 700, 701)

Also, you can check page 86 SB for ISA 700 report.

“Going Concern Assumption”, E. Bortiz, Ca Magazine, April 1991, p. 22.

“GAAP, Evaluation and decision making,” L.S. Rosen, CA Magazine, April 1997, pp. 40 – 52.

Peecher, M.E., R. Schwartz, and I. Solomon. 2007. It’s all about audit quality: Perspectives in strategic-systems auditing. Accounting, Organizations and Society. Vol. 32: 463-485.

Knechel, W. R. 2007. The business risk audit: Origins, obstacles and opportunities. Accounting, Organizations and Society. Vol. 32: 383-408.

Class 2 - Optional Readings

***Professional Judgment and the Auditor , CICA Research Study, 1995, pp. 1-84

Class 3-4 - Required Readings

Adopting ISAs (same as class 1 , 1 st reading)

Ch. 2 AA

Bewley, K. “Financial Reporting Regulation: The Case of Converging Canadian and International Accounting and Auditing Standards. Accounting Perspectives. Vol. 7, No. 1: 9-39.

FASB’s GAAP Hierarchy—Is it reasonable?

Class 3-4 Optional Readings

May 2, 2006 Enron testimony by Jerry Arnold

Class 5-6 Required Readings

Chapter 10 and appendix 10B of SB

Giant Store’s Case—the power of statistical reasoning to guide audit judgment

Class 5-6 Optional Readings

May 3, 2006 Enron testimony by Arnold and Rush

Class 7 Optional Reading

May 4, 2006 Enron testimony by Arnold and Rush

Class 8-9 Required Readings

HB 5306, CAS 450 and 540 Redrafted

IASB and FASB “Conceptual Framework Project” at www.fasb.org Click on the “Revisiting the Concepts” and the IASB and FASB “Discussion papers on new conceptual frameworks, Preliminary Views,” and “Selected Issues Relating to Assets and Liabilities with Uncertainties” documents.

Scott, W. R. 2002. An International Comparison and Evaluation of Financial Accounting Concepts Statements. Canadian Accounting Perspectives. CAAA. Vol. 1 No.2: 163-184. Canada

Cockburn, D. (1992). At home on the range. CA Magazine. CICA. May: 38-39.

Glover, J. C., Y. Ijiri, C. B. Levine, and P. J. Liang (2005). Separating Facts from Forecasts in Financial Statements. Accounting Horizons. December: 267-282

Smieliauskas, W. 2007. What’s wrong with the current audit risk model? Accounting Perspectives. CAAA. Winter: 343-367.

Class 8-9 Optional Readings

Ch. 14 of SB especially Appendix 14B

"Making Allowances", Buski, Richard, Godwin, Mike. CA Magazine. Toronto: Mar 1993. Vol. 126, Iss. 3; p. 59 (2 pages)

Class 10-11 Required Readings

HB 5135 and 5136

Ch. 17 of SB (or equivalent) and Appendix 1C

David Selley,  Eric Turner.(2004, August). Detecting fraud and error. CA Magazine, 137(6), 37-38. 

Kelly, John (1995, January). Law and audit. CA Magazine, 128(1), 62-65.

George J Benston (2006). Fair-value accounting: A cautionary tale from Enron. Journal of Accounting and Public Policy, 25(4), 465-484. 

George J Benston,  Douglas R Carmichael,  Joel S Demski,  Bala G Dharan,  Karim Jamal,  Robert Laux,  Shiva Rajgopal,  George Vrana. (2007). The FASB's Conceptual Framework for Financial Reporting: A Critical Analysis. Accounting Horizons, 21(2), 229-238.

Jamal, K. 2008. Mandatory Audit of Financial Reporting: A Failed Strategy for Dealing with Fraud. Accounting Perspectives. Vol. 7 No. 2: 97-110 and 123-126

Salterio, S.E. 2008. A Strategy for Dealing with Financial Reporting Fraud: Fewer Mandates, More Auditing . Accounting Perspectives. Vol. 7 No. 2: 111-121 and 127- 129.

Smieliauskas, W. (2008). A Framework for Identifying (and Avoiding) Fraudulent Financial Reporting. Accounting Perspectives Vol. 7 No. 3

Class 10-11 Optional Readings

“Who’s Counting?” M. Johnson, Time Magazine, March 16, 1992, pp. 34-38.

Class 12 Required Readings

Ch. 16 SB pp. 667-674 and 18 SB (or equivalent)

HB Sections 5025, 1000, and 5925

“Building a Case in a VFM Audit”, D.M. Barnes and D.E. Sheehy, CA Magazine, October 1991, pp. 59-62.

Visit the website of the Office of the Auditor General of Canada at www.oag-bvg.gc.ca to see what you can learn about the sponsorship and Canada Post scandals.

“More Power to Audit Committees”, A.J. Dilworth, CA Magazine, May 1989, pp. 26-37.

Basu, S. And G. B. Waymire. 2006. Recordkeeping and Human Evolution. Accounting Horizons. Vol. 20, Iss. 3 (Sept): 201-230.

Smieliauskas, W. 2006. Introduction and Commentary on Forensic Accounting Forum. Canadian Accounting Perspectives.

Class 12 Optional Readings

***Value-for-Money Audit Evidence , D.M. Barnes, CICA, 1991, pp. 1-36.

“On Guard for Thee”, B.Banks, CA Magazine, January /February 1994, pp. 24-37.