2 M&N Monday Jan. 12 O Friday Jan 16 Client Acceptance/Continuance Issues, Risk Assessment and Managing Risk in the Audit Engagement Learning Objectives: Analyze the factors underlying engagement risk assessment and apply to client acceptance/continuance issues Show the link between the client’s strategic direction and identification of significant audit risk Understand, analyze and identify the motivations behind earnings management Assess fraud risk and identify financial statement fraud and be able to develop an audit strategy to address these risks Apply professional scepticism when in an audit of the financial statements Identify and analyze the risks related to Related Party Transactions Develop an audit strategy and procedures for Related Party Transactions CAS: 240, 250, 260, 315, 320, 330, 450, 500, 520 Evaluating Engagement Risk (Jones) Keep the Skeptical Edge (Cowperthwaite, 2011) Enhancing Professional Skepticism (Auditing and Assurance Bulletin, CPA Canada) The Hidden Risk in Analytical Procedures: What WorldCom Revealed ((Hitzig, 2004) How to Analyze an Assurance Case and Prepare and Audit Planning Memo Risk and Audit Strategy Notes Notes on Auditing Related Party Transactions Case - Aerospace Lighting Case - Controls over Related Party Transactions at Scotiabank (Iacobelli) Group Activitiy – Related Party Transactions at Tyco CW: Session 2 Slides
5 M&N Monday Feb 2nd O Friday Feb 6th Applying and Assessing Professional Judgment Auditing Estimates Auditing Fair Value Issues Related to Relying Upon Specialists and Management Learning Objectives Identify and analyze audit risk related to Management Estimates Apply professional judgment in evaluating management estimates Identify and understand why and when an auditor needs to rely upon others who have a particular expertise in the subject matter Perform research to determine to determine proper accounting treatment of Management Estimates Understand the auditor’s responsibility when relying on the work of an expert Identify and analyze audit risk related to auditing Fair Values Develop an audit strategy and procedures for auditing Management Estimates and Fair Values CAS: 540, 620, 580 The Gray Area of Bias (Gunn, 2008) Notes on Auditing Estimates and Fair Value Case: Warmth Home Comfort Ltd (CICA 2001) Case: Great Lake Cruises CW: Session 5 Slides 6 Sunday Feb 8th, 2015 Midterm Exam (Covers Material from Sessions 1-5 Time: Location 7 M&N Monday Feb. 23 O Friday Feb. 13 Applying and Assessing Professional Judgment The Going Concern Assumption Learning Objectives: Identify and analyze the risks related to Going Concern Evaluate the going concern assumption and determine how to adjust the audit strategy CAS: 320, 540, 570, 620 Notes on Auditing the Going Concern Assumption Auditing Considerations in an Uncertain Economic Environment (Auditing and Assurance Bulletin, CPA Canada) Case: Hamm Industries CW: Session 7 Slides
12 M&N Monday Mar. 30 O Friday Mar. 27 Not-For-Profit Audits and Course Review Learning Objectives: Explain definitions and disclosures related to not-for-profit organizations Understand changes in accounting standards applicable to financial reporting framework of NFPs. Using appropriate CPA Canada Handbook section evaluate case scenarios to determine proper accounting treatment of transactions for a not-for-profit entity Explain the control issues unique to NFPs Identify the audit issues and risks that are unique to NFPs and develop appropriate audit strategy to address those risks CPA Handbook (Part III) Notes on Auditing Not-for-Profit CK: Corporate Governance Tools to Prevent Fraud in the Not-for-Profit Sector Case: Yorktown Art Gallery Case: CCL Canada Other: A Guide to Financial Statements of Not-for-profit Organizations: Questions for Directors to Ask (Download from CPA site) CW: Session 12 Slides