3 Internal Control Risk Assessment, and CAS: 265, 550, 610, Corporate Governance OCS: 5925 M&N Monday Learning Objectives: Jan. 19 Effective Corporate Governance Understand the auditors’, management’s, (Jones) and the audit committee’s responsibilities for internal control O Role of the Audit Committee (CPAB, Apply understanding of corporate Friday 2013) governance and control environment to Jan 23 analyze ethical conduct of organization Case – SEC versus Siemens (Mintz Evaluate the effectiveness of internal and Morris) controls Identify and explain what is a material Case – Dry Quick versus significant control deficiency Understand the accountability relationships among the external auditor, Group Activitiy Evaluating – internal auditor, management, and the Effectiveness of Controls audit committee Assess the corporate governance CW: Session 3 Slides function in the context of the external audit Apply and Assessing Professional Judgment CAS 240 (Appendices 1,2, & 3), 520 Complex Revenue Transactions 4 Notes on Auditing Revenue Deferred Costs and Capitalization M&N Group Activity Revenue Monday Learning Objectives – Recognition Jan. 26 Identify and analyze risks related to capitalization and deferral of Case Violet Lifestyles – expenditures O Develop an audit strategy and Friday CW: Session 4 Slides procedures for Deferred Costs Jan 30 transactions Research relevant accounting standards to determine proper accounting Your 1st pair case assignment is treatment of Revenue Recognition due today – See Course Website transactions Identify and analyze risks related to Revenue Recognition Develop an audit strategy and procedures for simple and complex Revenue Recognition scenarios and Deferral of Costs Apply professional judgment in evaluating high risk audit areas and complex accounting transactions
3 M&N Monday Jan. 19 O Friday Jan 23 Internal Control Risk Assessment, and Corporate Governance Learning Objectives: Understand the auditors’, management’s, and the audit committee’s responsibilities for internal control Apply understanding of corporate governance and control environment to analyze ethical conduct of organization Evaluate the effectiveness of internal controls Identify and explain what is a material versus significant control deficiency Understand the accountability relationships among the external auditor, internal auditor, management, and the audit committee Assess the corporate governance function in the context of the external audit CAS: 265, 550, 610, OCS: 5925 Effective Corporate Governance (Jones) Role of the Audit Committee (CPAB, 2013) Case – SEC versus Siemens (Mintz and Morris) Case – Dry Quick Group Activitiy – Evaluating Effectiveness of Controls CW: Session 3 Slides 4 M&N Monday Jan. 26 O Friday Jan 30 Apply and Assessing Professional Judgment Complex Revenue Transactions Deferred Costs and Capitalization Learning Objectives Identify and analyze risks related to capitalization and deferral of expenditures Develop an audit strategy and procedures for Deferred Costs transactions Research relevant accounting standards to determine proper accounting treatment of Revenue Recognition transactions Identify and analyze risks related to Revenue Recognition Develop an audit strategy and procedures for simple and complex Revenue Recognition scenarios and Deferral of Costs Apply professional judgment in evaluating high risk audit areas and complex accounting transactions CAS 240 (Appendices 1,2, & 3), 520 Notes on Auditing Revenue Group Activity – Revenue Recognition Case – Violet Lifestyles CW: Session 4 Slides Your 1st pair case assignment is due today – See Course Website