Applies the income tax concepts presented in AF 450 to corporations, partnerships, Subchapter S corporations, trusts, and estates. The course introduces the concepts of the federal gift tax and the federal estate tax. Includes studies in relevant costs, cost behavior analysis, risk analysis as applied to capital budgeting, inventory management, cost allocation, and variance analysis. The course examines the professional role of the auditor, along with its operational, ethical, and legal implications. Areas typically covered include professional auditing standards, the auditors' report, specialized reporting issues, auditors' legal responsibilities, gathering and evaluating evidence, the internal control structure audit sampling, and the Code of Professional Conduct.
Discussions consider issues of judgment typically faced by auditors in practice.
AF 311 and AF 470 may be taken concurrently with permission of the Undergraduate Program Office. The course presents the conceptual foundations of auditing, as well as the practical application of auditing techniques to the public and private sectors. It is recommended that students take AF 363 before 471. Designed for the advanced accounting student preparing for a career in internal or external auditing. It is recommended that students take AF 315 and either 470 or 471 before taking 472.