ACC 574 – Student Notes
(Prerequisite: ACC 562)
COURSE DESCRIPTION
This course focuses on the assurances given to financial statements and other documents by the independent auditor in the context of auditing organizations and their business strategies. It compares the traditional independent auditing procedures to those found in the emerging new audit process and risk models.
INSTRUCTIONAL MATERIALS
Required Resources
Hall, J. (2011). Information Technology Auditing (3rd ed.). Mason, OH: South-Western Cengage Learning.
Prentice, Robert, & Bredeson, Dean (2011). Student Guide to the Sarbanes-Oxley Act: What Business
Needs to Know Now That it is Implemented. Mason, OH: South-Western Cengage Learning. (Note: This is located in Week 1 of the course shell)
Supplemental Resources
Audit and Attest Standards, Including Clarified Standards (2012). Retrieved from: http://www.aicpa.org/Research/Standards/AuditAttest/Pages/audit%20and%20attest%20standards.aspx
Fan, Q., & Zhang, X. J. (2012). Accounting Conservatism, Aggregation, and Information Quality.
Contemporary Accounting Research, 29, 38-56.
McNeal, A. (2010). What’s your fraud IQ? Journal of Accountancy, 209(5), 50-52.
COURSE LEARNING OUTCOMES
1. Assess the impact of the Sarbanes-Oxley Act and other regulatory requirements on the ability of public accounting firms and professionals’ ability to provide advisory services.
2. Evaluate the conceptual framework model that links general controls, application controls, and financial data integrity, and the sufficiency related to establish internal controls.
3. Assess how security and controls processes related to networks, operating systems, and data management are designed and implemented to create sufficient controls over organizational assets.
4. Evaluate the factors that impact the risks, controls, and tests of controls related to information technology governance, including those related to outsourcing.
5. Explore various computer-assisted audit tools and techniques for auditing operating and database systems for establishing a control environment in various business environments.
6. Evaluate the key activities requirements that constitute the system development life cycle (SDLC).
7. Examine the objectives related to the effective implementation of transaction processing and financial reporting systems.
8. Analyze various fraud schemes, determine the implications for the audit, and identify fraud detection techniques.
9. Assess the risks and benefits of implementing operating systems, communication networks, Electronic Data Interchange, and PC-based accounting systems.
10. Evaluate auditing procedures and techniques to audit the revenue and expense cycles to meet various business requirements.
11. Examine Enterprise Resource Planning Systems and the auditing issues related to implementation and control.
12. Analyze issues related to automated procedures, internal control, and audit tests.
13. Use technology and information resources.
1. ACC 574 – Student Notes
(Prerequisite: ACC 562)
COURSE DESCRIPTION
This course focuses on the assurances given to financial
statements and other documents by the independent auditor in
the context of auditing organizations and their business
strategies. It compares the traditional independent auditing
procedures to those found in the emerging new audit process
and risk models.
INSTRUCTIONAL MATERIALS
Required Resources
Hall, J. (2011). Information Technology Auditing (3rd ed.).
Mason, OH: South-Western Cengage Learning.
Prentice, Robert, & Bredeson, Dean (2011). Student Guide to
the Sarbanes-Oxley Act: What Business
Needs to Know Now That it is Implemented. Mason, OH: South-
Western Cengage Learning. (Note: This is located in Week 1 of
the course shell)
Supplemental Resources
Audit and Attest Standards, Including Clarified Standards
(2012). Retrieved from:
http://www.aicpa.org/Research/Standards/AuditAttest/Pages/aud
it%20and%20attest%20standards.aspx
Fan, Q., & Zhang, X. J. (2012). Accounting Conservatism,
Aggregation, and Information Quality.
Contemporary Accounting Research, 29, 38-56.
McNeal, A. (2010). What’s your fraud IQ? Journal of
Accountancy, 209(5), 50-52.
2. COURSE LEARNING OUTCOMES
1. Assess the impact of the Sarbanes-Oxley Act and other
regulatory requirements on the ability of public accounting
firms and professionals’ ability to provide advisory services.
2. Evaluate the conceptual framework model that links general
controls, application controls, and financial data integrity, and
the sufficiency related to establish internal controls.
3. Assess how security and controls processes related to
networks, operating systems, and data management are designed
and implemented to create sufficient controls over
organizational assets.
4. Evaluate the factors that impact the risks, controls, and tests
of controls related to information technology governance,
including those related to outsourcing.
5. Explore various computer-assisted audit tools and techniques
for auditing operating and database systems for establishing a
control environment in various business environments.
6. Evaluate the key activities requirements that constitute the
system development life cycle (SDLC).
7. Examine the objectives related to the effective
implementation of transaction processing and financial
reporting systems.
8. Analyze various fraud schemes, determine the implications
for the audit, and identify fraud detection techniques.
9. Assess the risks and benefits of implementing operating
systems, communication networks, Electronic Data Interchange,
and PC-based accounting systems.
10. Evaluate auditing procedures and techniques to audit the
revenue and expense cycles to meet various business
requirements.
11. Examine Enterprise Resource Planning Systems and the
auditing issues related to implementation and control.
12. Analyze issues related to automated procedures, internal
control, and audit tests.
13. Use technology and information resources to research issues
in emerging auditing technologies.
3. 14. Write clearly and concisely about emerging auditing
technologies using proper writing mechanics.
WEEKLY COURSE SCHEDULE
The standard requirement for a 4.5 credit hour course is for
students to spend 13.5 hours in weekly work. This includes
preparation, activities, and evaluation regardless of delivery
mode.
Week
Preparation, Activities, and Evaluation
Points
1
Preparation
· Reading(s)
· Chapter 1: Auditing and Internal Control
· Student Guide to the Sarbanes-Oxley Act (Note: This is
located in Week 1 of the course shell)
· e-Activity
· Visit the Website for the American Institute of Certified
Public Accountants (AICPA), located at
http://www.aicpa.org/Pages/Default.aspx, and review the
qualifications for becoming a CPA under Licensure. Be
prepared to discuss.
Activities
· Discussions
Evaluation
· None
4. 20
2
Preparation
· Reading(s)
· Chapter 2: Auditing IT Governance and Control
Activities
· Discussions
Evaluation
· Assignment 1: SOX Regulations
20
240
3
Preparation
· Reading(s)
· Chapter 3: Security Part I: Auditing Operating Systems and
Networks
· Chapter 4: Security Part 2: Auditing Database Systems
· e-Activity
· Visit the Website for the AICPA, located at
http://www.aicpa.org/Pages/Default.aspx, and review AICPA
News. Be prepared to discuss.
· Discussions
Evaluation
· None
5. 20
4
Preparation
· Reading(s)
· Chapter 5: Systems Development and Program Change
Activities
· Discussions
Evaluation
· Assignment 2: Operating and Database Systems
20
240
5
Preparation
· Reading(s)
· Chapter 6: Transaction Processing and Financial Reporting
Systems Overview
Activities
· Discussions
Evaluation
· None
20
6. 6
Preparation
· Reading(s)
· Chapter 7: Computer-Assisted Audit Tools and Techniques
· e-Activity
· Review the Website for International Financial Reporting
Standards (IFRS) located at
http://www.ifrs.org/Pages/default.aspx. Identify which
companies are slated to begin using IFRS. Be prepared to
discuss.
Activities
· Discussions
Evaluation
· Assignment 3: PWC Audit Scandal and Fraud
20
320
7
Preparation
· Reading(s)
· Chapter 8: Data Structure and CAATT’s for Data Extraction
Activities
· Discussions
Evaluation
· None
7. 20
8
Preparation
· Reading(s)
· Chapter 9: Auditing the Revenue Cycle
· Chapter 10: Auditing the Expenditure Cycle
· e-Activity
· Research the Internet in order to review emerging issues
identified by the Public Company Accounting Oversight Board
(PCAOB). Be prepared to discuss.
Activities
· Discussions
Evaluation
· Assignment 4: Emerging Auditing Issues
20
320
9
Preparation
· Reading(s)
· Chapter 11: Enterprise Resource Planning Systems
Activities
8. · Discussions
Evaluation
· None
20
10
Preparation
· Reading(s)
· Chapter 12: Business Ethics, Fraud, and Fraud Detection
· e-Activity
· Visit the Securities and Exchange Website, located at
http://www.sec.gov/, and review the Theft Red Flag Rules. Be
prepared to discuss.
Activities
· Discussions
Evaluation
· Assignment 5: Comprehensive Audit Plan
20
300
11
11. Due Week 2 and worth 240 points
Review the Student Guide to Sarbanes-Oxley Act (SOX) located
in Week 1 of the course shell, and other current activity or
trends related to SOX compliance and implementation for
publically traded companies.
Write a five to seven (5-7) page paper in which you:
1. Assess the sections of SOX, indicating the sections that you
believe have the most impact on companies. Provide support for
your rationale.
2. Assess the sections of SOX, indicating those sections that
have the greatest impact on the external auditor. Provide
support for your rationale.
3. Evaluate the external auditors’ response options requesting
the external auditor to limit testing and the scope of an audit
engagement by giving consideration to the ethical requirements
and the auditor’s responsibility imposed by the Public Company
Accounting Oversight Board (PCAOB). Recommend that based
option providing a justification for your recommendation.
4. Evaluate the cost / benefit ratio for most companies required
to comply with SOX. Indicate whether the benefits are
equivalent to the cost for minimizing the risk of accounting
fraud. Provide support for your analysis.
5. Use at least three (3) quality resources in this assignment.
Note: Wikipedia and similar Websites do not qualify as quality
resources.
Your assignment must follow these formatting requirements:
· Be typed, double spaced, using Times New Roman font (size
12), with one-inch margins on all sides; citations and references
must follow APA or school-specific format. Check with your
professor for any additional instructions.
· Include a cover page containing the title of the assignment, the
student’s name, the professor’s name, the course title, and the
date. The cover page and the reference page are not included in
12. the required assignment page length.
The specific course learning outcomes associated with this
assignment are:
· Assess the impact of the Sarbanes-Oxley Act and other
regulatory requirements on the ability of public accounting
firms and professionals’ ability to provide advisory services.
· Use technology and information resources to research issues in
emerging auditing technologies.
· Write clearly and concisely about emerging auditing
technologies using proper writing mechanics.
Grading for this assignment will be based on answer quality,
logic / organization of the paper, and language and writing
skills, using the following rubric.
Points: 240
Assignment 1: SOX Regulations
Criteria
Unacceptable
Below 70% F
Fair
70-79% C
Proficient
80-89% B
Exemplary
90-100% A
1. Assess the sections of SOX, indicating the sections that you
believe have the most impact on companies. Provide support for
your rationale.
Weight: 20%
Did not submit or incompletely assessed the sections of SOX,
indicating the sections that you believe have the most impact on
companies. Did not submit or incompletely provided support for
your rationale.
Partially assessed the sections of SOX, indicating the sections
that you believe have the most impact on companies. Partially
13. provided support for your rationale.
Satisfactorily assessed the sections of SOX, indicating the
sections that you believe have the most impact on companies.
Satisfactorily provided support for your rationale.
Thoroughly assessed the sections of SOX, indicating the
sections that you believe have the most impact on companies.
Thoroughly provided support for your rationale.
2. Assess the sections of SOX, indicating those sections that
have the greatest impact on the external auditor. Provide
support for your rationale.
Weight: 20%
Did not submit or incompletely assessed the sections of SOX,
indicating those sections that have the greatest impact on the
external auditor. Did not submit or incompletely provided
support for your rationale.
Partially assessed the sections of SOX, indicating those sections
that have the greatest impact on the external auditor. Partially
provided support for your rationale.
Satisfactorily assessed the sections of SOX, indicating those
sections that have the greatest impact on the external auditor.
Satisfactorily provided support for your rationale.
Thoroughly assessed the sections of SOX, indicating those
sections that have the greatest impact on the external auditor.
Thoroughly provided support for your rationale.
3. Evaluate the external auditors’ response options requesting
the external auditor to limit testing and the scope of an audit
engagement by giving consideration to the ethical requirements
and the auditor’s responsibility imposed by the Public Company
Accounting Oversight Board (PCAOB). Recommend that based
option providing a justification for your recommendation.
Weight: 20%
Did not submit or incompletely evaluated the external auditors’
response options requesting the external auditor to limit testing
and the scope of an audit engagement by giving consideration to
the ethical requirements and the auditor’s responsibility
imposed by the Public Company Accounting Oversight Board
14. (PCAOB). Did not submit or incompletely recommended that
based option providing a justification for your recommendation.
Partially evaluated the external auditors’ response options
requesting the external auditor to limit testing and the scope of
an audit engagement by giving consideration to the ethical
requirements and the auditor’s responsibility imposed by the
Public Company Accounting Oversight Board (PCAOB).
Partially recommended that based option providing a
justification for your recommendation.
Satisfactorily evaluated the external auditors’ response options
requesting the external auditor to limit testing and the scope of
an audit engagement by giving consideration to the ethical
requirements and the auditor’s responsibility imposed by the
Public Company Accounting Oversight Board (PCAOB).
Satisfactorily recommended that based option providing a
justification for your recommendation.
Thoroughly evaluated the external auditors’ response options
requesting the external auditor to limit testing and the scope of
an audit engagement by giving consideration to the ethical
requirements and the auditor’s responsibility imposed by the
Public Company Accounting Oversight Board (PCAOB).
Thoroughly recommended that based option providing a
justification for your recommendation.
4. Evaluate the cost / benefit ratio for most companies required
to comply with SOX. Indicate whether the benefits are
equivalent to the cost for minimizing the risk of accounting
fraud. Provide support for your analysis.
Weight: 25%
Did not submit or incompletely evaluated the cost / benefit ratio
for most companies required to comply with SOX. Did not
submit or incompletely indicated whether the benefits are
equivalent to the cost for minimizing the risk of accounting
fraud. Did not submit or incompletely provided support for your
analysis.
Partially evaluated the cost / benefit ratio for most companies
required to comply with SOX. Partially indicated whether the
15. benefits are equivalent to the cost for minimizing the risk of
accounting fraud. Partially provided support for your analysis.
Satisfactorily evaluated the cost / benefit ratio for most
companies required to comply with SOX. Satisfactorily
indicated whether the benefits are equivalent to the cost for
minimizing the risk of accounting fraud. Satisfactorily provided
support for your analysis.
Thoroughly evaluated the cost / benefit ratio for most
companies required to comply with SOX. Thoroughly indicated
whether the benefits are equivalent to the cost for minimizing
the risk of accounting fraud. Thoroughly provided support for
your analysis.
5. 3 references
Weight: 5%
No references provided
Does not meet the required number of references; some or all
references poor quality choices.
Meets number of required references; all references high quality
choices.
Exceeds number of required references; all references high
quality choices.
6. Clarity, writing mechanics, and formatting requirements
Weight: 10%
More than 6 errors present
5-6 errors present
3-4 errors present
0-2 errors present
Assignment 2: Operating and Database Systems
Due Week 4 and worth 240 points
Imagine that you have been selected as the consultant to design
a new computer system for an investment company.
Write a five to seven (5-7) page paper in which you:
1. Discuss the considerations for implementing an operating and
database system. Recommend the optimum system, considering
16. the types of revenue and expense transactions for this company.
2. Assess the issues related to data management, key elements
of the database environment, controlling and auditing data
management, and the related risk to an organization. Discuss
possible strategies to mitigate those risks of installing a
database without adequate controls.
3. Analyze the six (6) broad classes of control activities defined
by Committee of Sponsoring Organizations (COSO) and
determine how they will impact the database design.
4. Recommend the appropriate database structure for the types
of transactions that will be entered and whether the computer
operations would be more effective if they were centralized or
decentralized.
5. Use at least three (3) quality resources in this assignment.
Note: Wikipedia and similar Websites do not qualify as quality
resources.
Your assignment must follow these formatting requirements:
· Be typed, double spaced, using Times New Roman font (size
12), with one-inch margins on all sides; citations and references
must follow APA or school-specific format. Check with your
professor for any additional instructions.
· Include a cover page containing the title of the assignment, the
student’s name, the professor’s name, the course title, and the
date. The cover page and the reference page are not included in
the required assignment page length.
The specific course learning outcomes associated with this
assignment are:
· Assess how security and controls processes related to
networks, operating systems, and data management are designed
and implemented to create sufficient controls over
organizational assets.
· Use technology and information resources to research issues in
emerging auditing technologies.
· Write clearly and concisely about emerging auditing
17. technologies using proper writing mechanics.
Grading for this assignment will be based on answer quality,
logic / organization of the paper, and language and writing
skills, using the following rubric.
Points: 240
Assignment 2: Operating and Database Systems
Criteria
Unacceptable
Below 70% F
Fair
70-79% C
Proficient
80-89% B
Exemplary
90-100% A
1. Discuss the considerations for implementing an operating and
database system. Recommend the optimum system, considering
the types of revenue and expense transactions for this company.
Weight: 20%
Did not submit or incompletely discussed the considerations for
implementing an operating and database system. Did not submit
or incompletely recommended the optimum system, considering
the types of revenue and expense transactions for this company.
Partially discussed the considerations for implementing an
operating and database system. Partially recommended the
optimum system, considering the types of revenue and expense
transactions for this company.
Satisfactorily discussed the considerations for implementing an
operating and database system. Satisfactorily recommended the
optimum system, considering the types of revenue and expense
transactions for this company.
Thoroughly discussed the considerations for implementing an
operating and database system. Thoroughly recommended the
optimum system, considering the types of revenue and expense
transactions for this company.
18. 2. Assess the issues related to data management, key elements
of the database environment, controlling and auditing data
management, and the related risk to an organization. Discuss
possible strategies to mitigate those risks of installing a
database without adequate controls.
Weight: 20%
Did not submit or incompletely assessed the issues related to
data management, key elements of the database environment,
controlling and auditing data management, and the related risk
to an organization. Did not submit or incompletely discussed
possible strategies to mitigate those risks of installing a
database without adequate controls.
Partially assessed the issues related to data management, key
elements of the database environment, controlling and auditing
data management, and the related risk to an organization.
Partially discussed possible strategies to mitigate those risks of
installing a database without adequate controls.
Satisfactorily assessed the issues related to data management,
key elements of the database environment, controlling and
auditing data management, and the related risk to an
organization. Satisfactorily discussed possible strategies to
mitigate those risks of installing a database without adequate
controls.
Thoroughly assessed the issues related to data management, key
elements of the database environment, controlling and auditing
data management, and the related risk to an organization.
Thoroughly discussed possible strategies to mitigate those risks
of installing a database without adequate controls.
3. Analyze the six (6) broad classes of control activities defined
by Committee of Sponsoring Organizations (COSO) and
determine how they will impact the database design.
Weight: 20%
Did not submit or incompletely analyzed the six (6) broad
classes of control activities defined by Committee of
Sponsoring Organizations (COSO) and did not submit or
incompletely determined how they will impact the database
19. design.
Partially analyzed the six (6) broad classes of control activities
defined by Committee of Sponsoring Organizations (COSO) and
partially determined how they will impact the database design.
Satisfactorily analyzed the six (6) broad classes of control
activities defined by Committee of Sponsoring Organizations
(COSO) and satisfactorily determined how they will impact the
database design.
Thoroughly analyzed the six (6) broad classes of control
activities defined by Committee of Sponsoring Organizations
(COSO) and thoroughly determined how they will impact the
database design.
4. Recommend the appropriate database structure for the types
of transactions that will be entered and whether the computer
operations would be more effective if they were centralized or
decentralized.
Weight: 25%
Did not submit or incompletely recommended the appropriate
database structure for the types of transactions that will be
entered and whether the computer operations would be more
effective if they were centralized or decentralized.
Partially recommended the appropriate database structure for
the types of transactions that will be entered and whether the
computer operations would be more effective if they were
centralized or decentralized.
Satisfactorily recommended the appropriate database structure
for the types of transactions that will be entered and whether the
computer operations would be more effective if they were
centralized or decentralized.
Thoroughly recommended the appropriate database structure for
the types of transactions that will be entered and whether the
computer operations would be more effective if they were
centralized or decentralized.
5. 3 references
Weight: 5%
No references provided
20. Does not meet the required number of references; some or all
references poor quality choices.
Meets number of required references; all references high quality
choices.
Exceeds number of required references; all references high
quality choices.
6. Clarity, writing mechanics, and formatting requirements
Weight: 10%
More than 6 errors present
5-6 errors present
3-4 errors present
0-2 errors present
Assignment 3: PWC Audit Scandal and Fraud
Due Week 6 and worth 320 pointsRead the article about Price
Waterhouse Coopers (PWC) and its association with the worst
accounting fraud in India related to its audit of Satyam
Computer Services, Ltd. titled “Price Waterhouse Auditors
Arrested in Satyam Inquiry (Update 1)” and located at
http://www.bloomberg.com/apps/news?pid=newsarchive&sid=ar
6hB_Hr347E. Search the Internet for other related articles.
Write a six to eight (6-8) page paper in which you:
1. Create an argument supporting that the requirements of SOX
have reduced corporate fraudulent activity due to the
requirements placed on public accounting firms, thereby
providing greater assurances to public users of financial
information. Provide support for your argument.
2. Evaluate the issues related to the audit of Satyam Computer
Services Limited, indicating whether or not PWC followed
auditing standards in rendering its audit opinion of the
company. Provide support for your rationale.
3. Assess whether PWC relied too heavily on the established
system of internal controls and neglected to perform sufficient
testing of transactions using effective computer-aided audit
tools. Provide a rationale for your recommendation.
21. 4. Analyze whether PWC neglected to sufficiently test
transactions or whether it could have relied on the audit of
Internal Control to limited testing in those areas, indicating any
consequences related to their decision. Provide support for your
conclusion.
5. Support your position for whether or not PWC met its
responsibility of “Due Care” based on the requirements placed
on auditors by PCAOB.
6. Suggest improvements needed to external auditing firms and
the accounting profession to reduce the number of audit
scandals and fraudulent activity within publically traded
companies. Provide support for your suggestions.
7. Use at least three (3) quality resources in this assignment.
Note: Wikipedia and similar Websites do not qualify as quality
resources.
Your assignment must follow these formatting requirements:
· Be typed, double spaced, using Times New Roman font (size
12), with one-inch margins on all sides; citations and references
must follow APA or school-specific format. Check with your
professor for any additional instructions.
· Include a cover page containing the title of the assignment, the
student’s name, the professor’s name, the course title, and the
date. The cover page and the reference page are not included in
the required assignment page length.
The specific course learning outcomes associated with this
assignment are:
· Analyze various fraud schemes, determine the implications for
the audit, and identify fraud detection techniques.
· Use technology and information resources to research issues in
emerging auditing technologies.
· Write clearly and concisely about emerging auditing
technologies using proper writing mechanics.
Grading for this assignment will be based on answer quality,
22. logic / organization of the paper, and language and writing
skills, using the following rubric.
Points: 320
Assignment 3: PWC Audit Scandal and Fraud
Criteria
Unacceptable
Below 70% F
Fair
70-79% C
Proficient
80-89% B
Exemplary
90-100% A
1. Create an argument supporting that the requirements of SOX
have reduced corporate fraudulent activity due to the
requirements placed on public accounting firms, thereby
providing greater assurances to public users of financial
information. Provide support for your argument.
Weight: 15%
Did not submit or incompletely created an argument supporting
that the requirements of SOX have reduced corporate fraudulent
activity due to the requirements placed on public accounting
firms, thereby providing greater assurances to public users of
financial information. Did not submit or incompletely provided
support for your argument.
Partially created an argument supporting that the requirements
of SOX have reduced corporate fraudulent activity due to the
requirements placed on public accounting firms, thereby
providing greater assurances to public users of financial
information. Partially provided support for your argument.
Satisfactorily created an argument supporting that the
requirements of SOX have reduced corporate fraudulent activity
due to the requirements placed on public accounting firms,
23. thereby providing greater assurances to public users of financial
information. Satisfactorily provided support for your argument.
Thoroughly created an argument supporting that the
requirements of SOX have reduced corporate fraudulent activity
due to the requirements placed on public accounting firms,
thereby providing greater assurances to public users of financial
information. Thoroughly provided support for your argument.
2. Evaluate the issues related to the audit of Satyam Computer
Services Limited, indicating whether or not PWC followed
auditing standards in rendering its audit opinion of the
company. Provide support for your rationale.
Weight: 15%
Did not submit or incompletely evaluated the issues related to
the audit of Satyam Computer Services Limited, indicating
whether or not PWC followed auditing standards in rendering
its audit opinion of the company. Did not submit or
incompletely provided support for your rationale.
Partially evaluated the issues related to the audit of Satyam
Computer Services Limited, indicating whether or not PWC
followed auditing standards in rendering its audit opinion of the
company. Partially provided support for your rationale.
Satisfactorily evaluated the issues related to the audit of Satyam
Computer Services Limited, indicating whether or not PWC
followed auditing standards in rendering its audit opinion of the
company. Satisfactorily provided support for your rationale.
Thoroughly evaluated the issues related to the audit of Satyam
Computer Services Limited, indicating whether or not PWC
followed auditing standards in rendering its audit opinion of the
company. Thoroughly provided support for your rationale.
3. Assess whether PWC relied too heavily on the established
system of internal controls and neglected to perform sufficient
testing of transactions using effective computer-aided audit
tools. Provide a rationale for your recommendation.
Weight: 15%
Did not submit or incompletely assessed whether PWC relied
too heavily on the established system of internal controls and
24. neglected to perform sufficient testing of transactions using
effective computer-aided audit tools. Did not submit or
incompletely provided a rationale for your recommendation.
Partially assessed whether PWC relied too heavily on the
established system of internal controls and neglected to perform
sufficient testing of transactions using effective computer-aided
audit tools. Partially provided a rationale for your
recommendation.
Satisfactorily assessed whether PWC relied too heavily on the
established system of internal controls and neglected to perform
sufficient testing of transactions using effective computer-aided
audit tools. Satisfactorily provided a rationale for your
recommendation.
Thoroughly assessed whether PWC relied too heavily on the
established system of internal controls and neglected to perform
sufficient testing of transactions using effective computer-aided
audit tools. Thoroughly provided a rationale for your
recommendation.
4. Analyze whether PWC neglected to sufficiently test
transactions or whether it could have relied on the audit of
Internal Control to limited testing in those areas, indicating any
consequences related to their decision. Provide support for your
conclusion.
Weight: 15%
Did not submit or incompletely analyzed whether PWC
neglected to sufficiently test transactions or whether it could
have relied on the audit of Internal Control to limited testing in
those areas, indicating any consequences related to their
decision. Did not submit or incompletely provided support for
your conclusion.
Partially analyzed whether PWC neglected to sufficiently test
transactions or whether it could have relied on the audit of
Internal Control to limited testing in those areas, indicating any
consequences related to their decision. Partially provided
support for your conclusion.
Satisfactorily analyzed whether PWC neglected to sufficiently
25. test transactions or whether it could have relied on the audit of
Internal Control to limited testing in those areas, indicating any
consequences related to their decision. Satisfactorily provided
support for your conclusion.
Thoroughly analyzed whether PWC neglected to sufficiently
test transactions or whether it could have relied on the audit of
Internal Control to limited testing in those areas, indicating any
consequences related to their decision. Thoroughly provided
support for your conclusion.
5. Support your position for whether or not PWC met its
responsibility of “Due Care” based on the requirements placed
on auditors by PCAOB.
Weight: 15%
Did not submit or incompletely supported your position for
whether or not PWC met its responsibility of “Due Care” based
on the requirements placed on auditors by PCAOB.
Partially supported your position for whether or not PWC met
its responsibility of “Due Care” based on the requirements
placed on auditors by PCAOB.
Satisfactorily supported your position for whether or not PWC
met its responsibility of “Due Care” based on the requirements
placed on auditors by PCAOB.
Thoroughly supported your position for whether or not PWC
met its responsibility of “Due Care” based on the requirements
placed on auditors by PCAOB.
6. Suggest improvements needed to external auditing firms and
the accounting profession to reduce the number of audit
scandals and fraudulent activity within publically traded
companies. Provide support for your suggestions.
Weight: 10%
Did not submit or incompletely suggested improvements needed
to external auditing firms and the accounting profession to
reduce the number of audit scandals and fraudulent activity
within publically traded companies. Did not submit or
incompletely provided support for your suggestions.
Partially suggested improvements needed to external auditing
26. firms and the accounting profession to reduce the number of
audit scandals and fraudulent activity within publically traded
companies. Partially provided support for your suggestions.
Satisfactorily suggested improvements needed to external
auditing firms and the accounting profession to reduce the
number of audit scandals and fraudulent activity within
publically traded companies. Satisfactorily provided support for
your suggestions.
Thoroughly suggested improvements needed to external auditing
firms and the accounting profession to reduce the number of
audit scandals and fraudulent activity within publically traded
companies. Thoroughly provided support for your suggestions.
7. 3 references
Weight: 5%
No references provided
Does not meet the required number of references; some or all
references poor quality choices.
Meets number of required references; all references high quality
choices.
Exceeds number of required references; all references high
quality choices.
8. Clarity, writing mechanics, and formatting requirements
Weight: 10%
More than 6 errors present
5-6 errors present
3-4 errors present
0-2 errors present
Assignment 4: Emerging Auditing Issues
Due Week 8 and worth 320 points
Search the Strayer databases or Internet for hot topics and
emerging issues of financial statement fraud and other
fraudulent act committed by publically traded companies,
including those identified by the PCAOB. Consider the topics,
27. trends, and longevity of those issues identified.
Write a six to eight (6-8) page paper in which you:
1. Create an argument in agreement or disagreement that the
creation of the PCAOB has been effective with improving the
reliability of audited financial statement for the public users of
the information. Provide support for your position.
2. Assess the impact of the PCAOB to the accounting
profession, given the shift from self-regulation to federally
regulated. Provide a rationale for your assessment.
3. Evaluate whether or not the PCAOB should issue additional
regulations regarding the responsibility for corporate officers
and auditors of financial statements, indicating the resulting
impact to financial statement integrity. Provide support for your
rationale.
4. Determine the impact that SOX regulation has on the internal
control environment. Speculate on the level of testing
necessary to provide assurance of completeness and accuracy
for CEOs to certify the company’s financial statements. Provide
support for your rationale.
5. Assess how the System Design Life Cycle model would
impact the emerging issue. Provide support for your rationale.
6. Recommend a strategy for dealing with the emerging issue
and determine the types of fraud schemes that might go
undetected if your recommendations are not implemented.
Provide support for your recommendation.
7. Use at least three (3) quality resources in this assignment.
Note: Wikipedia and similar Websites do not qualify as quality
resources.
Your assignment must follow these formatting requirements:
· Be typed, double spaced, using Times New Roman font (size
12), with one-inch margins on all sides; citations and references
must follow APA or school-specific format. Check with your
professor for any additional instructions.
· Include a cover page containing the title of the assignment, the
28. student’s name, the professor’s name, the course title, and the
date. The cover page and the reference page are not included in
the required assignment page length.
The specific course learning outcomes associated with this
assignment are:
· Evaluate auditing procedures and techniques to audit the
revenue and expense cycles to meet various business
requirements.
· Use technology and information resources to research issues in
emerging auditing technologies.
· Write clearly and concisely about emerging auditing
technologies using proper writing mechanics.
Grading for this assignment will be based on answer quality,
logic / organization of the paper, and language and writing
skills, using the following rubric.
Points: 320
Assignment 4: Emerging Audit Issues
Criteria
Unacceptable
Below 70% F
Fair
70-79% C
Proficient
80-89% B
Exemplary
90-100% A
1. Create an argument in agreement or disagreement that the
creation of the PCAOB has been effective with improving the
reliability of audited financial statement for the public users of
the information. Provide support for your position.
Weight: 10%
Did not submit or incompletely created an argument in
agreement or disagreement that the creation of the PCAOB has
been effective with improving the reliability of audited
29. financial statement for the public users of the information. Did
not submit or incompletely provided support for your position.
Partially created an argument in agreement or disagreement that
the creation of the PCAOB has been effective with improving
the reliability of audited financial statement for the public users
of the information. Partially provided support for your position.
Satisfactorily created an argument in agreement or disagreement
that the creation of the PCAOB has been effective with
improving the reliability of audited financial statement for the
public users of the information. Satisfactorily provided support
for your position.
Thoroughly created an argument in agreement or disagreement
that the creation of the PCAOB has been effective with
improving the reliability of audited financial statement for the
public users of the information. Thoroughly provided support
for your position.
2. Assess the impact of the PCAOB to the accounting
profession, given the shift from self-regulation to federally
regulated. Provide a rationale for your assessment.
Weight: 15%
Did not submit or incompletely assessed the impact of the
PCAOB to the accounting profession, given the shift from self-
regulation to federally regulated. Did not submit or
incompletely provided a rationale for your assessment.
Partially assessed the impact of the PCAOB to the accounting
profession, given the shift from self-regulation to federally
regulated. Partially provided a rationale for your assessment.
Satisfactorily assessed the impact of the PCAOB to the
accounting profession, given the shift from self-regulation to
federally regulated. Satisfactorily provided a rationale for your
assessment.
Thoroughly assessed the impact of the PCAOB to the
accounting profession, given the shift from self-regulation to
federally regulated. Thoroughly provided a rationale for your
assessment.
3. Evaluate whether or not the PCAOB should issue additional
30. regulations regarding the responsibility for corporate officers
and auditors of financial statements, indicating the resulting
impact to financial statement integrity. Provide support for your
rationale.
Weight: 15%
Did not submit or incompletely evaluated whether or not the
PCAOB should issue additional regulations regarding the
responsibility for corporate officers and auditors of financial
statements, indicating the resulting impact to financial
statement integrity. Did not submit or incompletely provided
support for your rationale.
Partially evaluated whether or not the PCAOB should issue
additional regulations regarding the responsibility for corporate
officers and auditors of financial statements, indicating the
resulting impact to financial statement integrity. Partially
provided support for your rationale.
Satisfactorily evaluated whether or not the PCAOB should issue
additional regulations regarding the responsibility for corporate
officers and auditors of financial statements, indicating the
resulting impact to financial statement integrity. Satisfactorily
provided support for your rationale.
Thoroughly evaluated whether or not the PCAOB should issue
additional regulations regarding the responsibility for corporate
officers and auditors of financial statements, indicating the
resulting impact to financial statement integrity. Thoroughly
provided support for your rationale.
4. Determine the impact that SOX regulation has on the internal
control environment. Speculate on the level of testing necessary
to provide assurance of completeness and accuracy for CEOs to
certify the company’s financial statements. Provide support for
your rationale.
Weight: 15%
Did not submit or incompletely determined the impact that SOX
regulation has on the internal control environment. Did not
submit or incompletely speculated on the level of testing
necessary to provide assurance of completeness and accuracy
31. for CEOs to certify the company’s financial statements. Did not
submit or incompletely provided support for your rationale.
Partially determined the impact that SOX regulation has on the
internal control environment Partially speculated on the level of
testing necessary to provide assurance of completeness and
accuracy for CEOs to certify the company’s financial
statements. Partially provided support for your rationale.
Satisfactorily determined the impact that SOX regulation has on
the internal control environment. Satisfactorily speculated on
the level of testing necessary to provide assurance of
completeness and accuracy for CEOs to certify the company’s
financial statements. Satisfactorily provided support for your
rationale.
Thoroughly determined the impact that SOX regulation has on
the internal control environment. Thoroughly speculated on the
level of testing necessary to provide assurance of completeness
and accuracy for CEOs to certify the company’s financial
statements. Thoroughly provided support for your rationale.
5. Assess how the System Design Life Cycle model would
impact the emerging issue. Provide support for your rationale.
Weight: 15%
Did not submit or incompletely assessed how the System Design
Life Cycle model would impact the emerging issue. Did not
submit or incompletely provided support for your rationale.
Partially assessed how the System Design Life Cycle model
would impact the emerging issue. Partially provided support for
your rationale.
Satisfactorily assessed how the System Design Life Cycle model
would impact the emerging issue. Satisfactorily provided
support for your rationale.
Thoroughly assessed how the System Design Life Cycle model
would impact the emerging issue. Thoroughly provided support
for your rationale.
6. Recommend a strategy for dealing with the emerging issue
and determine the types of fraud schemes that might go
undetected if your recommendations are not implemented.
32. Provide support for your recommendation.
Weight: 15%
Did not submit or incompletely recommended a strategy for
dealing with the emerging issue and did not submit or
incompletely determined the types of fraud schemes that might
go undetected if your recommendations are not implemented.
Did not submit or incompletely provided support for your
recommendation.
Partially recommended a strategy for dealing with the emerging
issue and partially determined the types of fraud schemes that
might go undetected if your recommendations are not
implemented. Partially provided support for your
recommendation.
Satisfactorily recommended a strategy for dealing with the
emerging issue and satisfactorily determined the types of fraud
schemes that might go undetected if your recommendations are
not implemented. Satisfactorily provided support for your
recommendation.
Thoroughly recommended a strategy for dealing with the
emerging issue and thoroughly determined the types of fraud
schemes that might go undetected if your recommendations are
not implemented. Thoroughly provided support for your
recommendation.
7. 3 references
Weight: 5%
No references provided
Does not meet the required number of references; some or all
references poor quality choices.
Meets number of required references; all references high quality
choices.
Exceeds number of required references; all references high
quality choices.
8. Clarity, writing mechanics, and formatting requirements
Weight: 10%
More than 6 errors present
5-6 errors present
33. 3-4 errors present
0-2 errors present
Assignment 5: Comprehensive Audit Plan
Due Week 10 and worth 300 points
For the hot topic in emerging issues identified in Assignment 4,
identify a company in that industry and respond to the following
questions. Consider the concepts covered in the course material
and in anticipation of issuing a qualified audit report.
Write a five to seven (5-7) page paper in which you:
1. Make recommendations on the requirements for the
feasibility study and discuss the pros and cons for the design of
SDLC with a recommendation for an optimal time frame for
each stage.
2. Make recommendations for the optimal computer operating
system to address the emerging issue.
3. Discuss the internal control considerations, and identify
issues and risk mitigation strategies.
4. Recommend an optimal revenue and expense cycle to capture
transactions, including documentation requirements.
5. Determine what future issues could impact the design of the
SDLC and discuss the design features in your proposed SDLC
that could be modified to address those issues.
6. Use at least three (3) quality resources in this assignment.
Note: Wikipedia and similar Websites do not qualify as quality
resources.
Your assignment must follow these formatting requirements:
· Be typed, double spaced, using Times New Roman font (size
12), with one-inch margins on all sides; citations and references
must follow APA or school-specific format. Check with your
professor for any additional instructions.
· Include a cover page containing the title of the assignment, the
34. student’s name, the professor’s name, the course title, and the
date. The cover page and the reference page are not included in
the required assignment page length.
The specific course learning outcomes associated with this
assignment are:
· Assess the impact of the Sarbanes-Oxley Act and other
regulatory requirements on the ability of public accounting
firms and professionals’ ability to provide advisory services.
· Evaluate the conceptual framework model that links general
controls, application controls, and financial data integrity, and
the sufficiency related to establish internal controls.
· Use technology and information resources to research issues in
emerging auditing technologies.
· Write clearly and concisely about emerging auditing
technologies using proper writing mechanics.
Grading for this assignment will be based on answer quality,
logic / organization of the paper, and language and writing
skills, using the following rubric.
Points: 300
Assignment 5: Comprehensive Audit Plan
Criteria
Unacceptable
Below 70% F
Fair
70-79% C
Proficient
80-89% B
Exemplary
90-100% A
1. Make recommendations on the requirements for the
feasibility study and discuss the pros and cons for the design of
SDLC with a recommendation for an optimal time frame for
each stage.
Weight: 15%
35. Did not submit or incompletely made recommendations on the
requirements for the feasibility study and did not submit or
incompletely discussed the pros and cons for the design of
SDLC with a recommendation for an optimal time frame for
each stage.
Partially made recommendations on the requirements for the
feasibility study and partially discussed the pros and cons for
the design of SDLC with a recommendation for an optimal time
frame for each stage.
Satisfactorily made recommendations on the requirements for
the feasibility study and satisfactorily discussed the pros and
cons for the design of SDLC with a recommendation for an
optimal time frame for each stage.
Thoroughly made recommendations on the requirements for the
feasibility study and thoroughly discussed the pros and cons for
the design of SDLC with a recommendation for an optimal time
frame for each stage.
2. Make recommendations for the optimal computer operating
system to address the emerging issue.
Weight: 15%
Did not submit or incompletely made recommendations for the
optimal computer operating system to address the emerging
issue.
Partially made recommendations for the optimal computer
operating system to address the emerging issue.
Satisfactorily made recommendations for the optimal computer
operating system to address the emerging issue.
Thoroughly made recommendations for the optimal computer
operating system to address the emerging issue.
3. Discuss the internal control considerations, and identify
issues and risk mitigation strategies.
Weight: 15%
Did not submit or incompletely discussed the internal control
considerations, and did not submit or incompletely identified
issues and risk mitigation strategies.
Partially discussed the internal control considerations, and
36. partially identified issues and risk mitigation strategies.
Satisfactorily discussed the internal control considerations, and
satisfactorily identified issues and risk mitigation strategies.
Thoroughly discussed the internal control considerations, and
thoroughly identified issues and risk mitigation strategies.
4. Recommend an optimal revenue and expense cycle to capture
transactions, including documentation requirements.
Weight: 20%
Did not submit or incompletely recommended an optimal
revenue and expense cycle to capture transactions, including
documentation requirements.
Partially recommended an optimal revenue and expense cycle to
capture transactions, including documentation requirements.
Satisfactorily recommended an optimal revenue and expense
cycle to capture transactions, including documentation
requirements.
Thoroughly recommended an optimal revenue and expense cycle
to capture transactions, including documentation requirements.
5. Determine what future issues could impact the design of the
SDLC and discuss the design features in your proposed SDLC
that could be modified to address those issues.
Weight: 20%
Did not submit or incompletely determined what future issues
could impact the design of the SDLC and did not submit or
incompletely discussed the design features in your proposed
SDLC that could be modified to address those issues.
Partially determined what future issues could impact the design
of the SDLC and partially discussed the design features in your
proposed SDLC that could be modified to address those issues.
Satisfactorily determined what future issues could impact the
design of the SDLC and satisfactorily discussed the design
features in your proposed SDLC that could be modified to
address those issues.
Thoroughly determined what future issues could impact the
design of the SDLC and thoroughly discussed the design
features in your proposed SDLC that could be modified to
37. address those issues.
6. 3 references
Weight: 5%
No references provided
Does not meet the required number of references; some or all
references poor quality choices.
Meets number of required references; all references high quality
choices.
Exceeds number of required references; all references high
quality choices.
7. Clarity, writing mechanics, and formatting requirements
Weight: 10%
More than 6 errors present
5-6 errors present
3-4 errors present
0-2 errors present
ACC 574 – Assignments and Rubrics
Weekly Course Schedule
The purpose of the course schedule is to give you, at a glance,
the required preparation, activities, and evaluation components
of your course. For more information about your course,
whether on-ground or online, access your online course shell.
The expectations for a 4.5 credit hour course are for students to
spend 13.5 hours in weekly work. This time estimate includes
preparation, activities, and evaluation regardless of the delivery
mode.
Instructional Materials
In order to be fully prepared, obtain a copy of the required
textbooks and other instructional materials prior to the first day
of class. When available, Strayer University provides a link to
the first three (3) chapters of your textbook(s) in eBook format.
Check your online course shell for availability.
Review the online course shell or check with your professor to
38. determine whether Internet-based assignments and activities are
used in this course.
Strayer students are encouraged to purchase their course
materials through our designated Strayer Bookstore.
http://www.strayerbookstore.com If a lab is required for the
course, the Strayer Bookstore is the only vendor that sells the
correct registration code so that Strayer students may access
labs successfully.
Discussions
To earn full credit in an online threaded discussion, students
must have one original post and a minimum of one other post
per discussion thread.
Please note: Material in the online class will be made available
on the previous Thursday. As it is always possible that students
could lose their work due to unforeseen circumstances, it is a
best practice to routinely save a working draft in a separate file
before posting in the course discussion area.
Professors hold discussions during class time for on-ground
students. Check with your professor if any additional discussion
participation is required in the online course shell outside of
class hours.
Assignments
A standardized performance grading rubric is a tool your
professor will use to evaluate your written assignments. Review
the rubric before submitting assignments that have grading
rubrics associated with them to ensure you have met the
performance criteria stated on the rubric.
Grades are based on individual effort. There is no group
grading; however, working in groups in the online or on-ground
classroom is acceptable.
Assignments for online students are always submitted through
the online course shell. On-ground professors will inform
students on how to submit assignments, whether in paper format
or through the online course shell.
Resources
39. The Resource Center navigation button in the online course
shell contains helpful links. Strayer University Library
Resources are available here as well as other important
information. You should review this area to find resources and
answers to common questions.
Technical support is available for the following:
· For technical questions, please contact Strayer Online
Technical Support by logging in to your iCampus account at
https://icampus.strayer.edu/login and submitting a case under
“Student Center,” then “Submit Help Ticket.” If you are unable
to log in to your iCampus account, please contact Technical
Support via phone at (877) 642-2999.
· For concerns with your class, please access the
Solution
Center by logging in to your iCampus account at
https://icampus.strayer.edu/login and submitting a case under
“Student Center,” then “Submit Help Ticket.” If you are unable
to log in to your iCampus account, please contact the IT Help
Desk at (866) 610-8123 or at mailto:[email protected]ayer.edu.
TurnItIn.com is an optional online tool to assess the originality
of student written work. Check with your professor for access
and use instructions.
The Strayer Policies link on the navigation bar in the online
course shell contains academic policies. It is important that
students be aware of these policies.
40. Week 2 Assignment 1 Submission
If you are using the Blackboard Mobile Learn iOS App, please
click "View in Browser"
Click the link above to submit this assignment.
Students, please view the "Submit a Clickable Rubric
Assignment" video in the Student
Center.
Instructors, training on how to grade is within the Instructor
Center.
Assignment 1: SOX Regulations
Due Week 2 and worth 240 points
Review the Student Guide to Sarbanes-Oxley Act (SOX)
located in Week 1 of the course
shell, and other current activity or trends related to SOX
compliance and implementation for
publically traded companies.
Write a five to seven (5-7) page paper in which you:
41. 1. Assess the sections of SOX, indicating the sections that you
believe have the most
impact on companies. Provide support for your rationale.
2. Assess the sections of SOX, indicating those sections that
have the greatest impact
on the external auditor. Provide support for your rationale.
3. Evaluate the external auditors’ response options requesting
the external auditor to
limit testing and the scope of an audit engagement by giving
consideration to the
ethical requirements and the auditor’s responsibility imposed by
the Public Company
Accounting Oversight Board (PCAOB). Recommend that based
option providing a
justification for your recommendation.
4. Evaluate the cost / benefit ratio for most companies required
to comply with SOX.
Indicate whether the benefits are equivalent to the cost for
minimizing the risk of
accounting fraud. Provide support for your analysis.
5. Use at least three (3) quality resources in this assignment.
42. Note: Wikipedia and
similar Websites do not qualify as quality resources.
Your assignment must follow these formatting requirements:
• Be typed, double spaced, using Times New Roman font (size
12), with one-inch
margins on all sides; citations and references must follow APA
or school-specific
format. Check with your professor for any additional
instructions.
• Include a cover page containing the title of the assignment, the
student’s name, the
professor’s name, the course title, and the date. The cover page
and the reference
page are not included in the required assignment page length.
The specific course learning outcomes associated with this
assignment are:
• Assess the impact of the Sarbanes-Oxley Act and other
regulatory requirements on
the ability of public accounting firms and professionals’ ability
to provide advisory
43. services.
• Use technology and information resources to research issues in
emerging auditing
technologies.
• Write clearly and concisely about emerging auditing
technologies using proper writing
mechanics.
Grading for this assignment will be based on answer quality,
logic / organization of the
paper, and language and writing skills. Click here to access the
rubric for this assignment.
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