Auditing II: The Practice of Auditing from Coursera

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Syllabus

About the Course

In this module, you will become familiar with the course, your instructor and your classmates, and our learning environment. This orientation will also help you obtain the technical skills required to navigate and be successful in this course.

Module 1: Strategic Analysis of a Client and Its Business Processes

In this module, you will be introduced to the concept of strategic systems auditing (SSA). First, you will learn about the SSA approach and how it impact the audit. Then, you will learn about strategic analysis and strategic business risks.

Module 2: Audit Evidence and Triangulation

In this module, you will be introduced to the concept of triangulation, which looks at three fundamental sources of audit evidence. First you will learn about the three sources of evidence, which are entity business states, management information intermediaries, and management business representations. Next, you will learn how evidence triangulation can be applied to the WorldCom scandal.

Module 3: Strategic Systems Auditing and Internal Controls

In this module, you will be introduced to the concept of internal controls. First, you will learn about different components of internal controls and how they impact the audit. Next, you will learn about different audit strategies around controls: Substantive strategy vs reliance strategy. Lastly, you will learn about the categories of internal control weaknesses.

Module 4: Interpreting Evidence and Significant Business Processes

Module 5: Verification of Management Assertions I: Attribute Sampling

In this module, you will be introduced to the concept of sampling. We will cover non-statistical and statistical sampling, but we will emphasize a form of statistical sampling called attribute sampling. You will learn about sampling risk as well as about three important determinants of sample size: risk of incorrect acceptance, tolerable error, and expected error. You will learn that population size actually has a small effect on sample size, contrary to lay theories the position population size as one of the most important determinants of needed sample sizes. You will also learn about key steps involved in planning and performing attribute sampling, the critical role of professional judgement during many of these steps, and you will learn about some specific audit procedures for verifying management’s assertions related to their controls.

Module 6: Verification of Management Assertions II: Unit Sampling

In this module, you will continue to learn about verifying management’s assertions. First, you will learn about unit sampling, which is one of the most common statistical sampling approaches. Then you will learn about the differences between unit sampling and non-statistical sampling. Next, you will learn about planning, picking, and evaluating the results of the sample. You will also learn about different types of sample selections: probabilistic and non-probabilistic. Lastly, you will reinforce your conceptual understanding by working through a unit sampling example.

Module 7: Fraud Risk Assessment

In this module, you will learn about fraud risk assessment, which is one of the most critical portions of the audit. First, you will learn about wise thinking and why it is important to have professional skepticism when it comes to fraud. You will learn about wise thinking from several recent studies. You will first learn about a study that highlights the importance of wise thinking in auditing. Then you will learn about two additional studies that show the factors that influence auditors’ judgement and management’s behavior. Lastly, you will learn about a study that shows how auditors’ strategic thinking influences their selected audit procedures.

Module 8: Completing the Attest Engagement

Good to know

Know what's good

, what to watch for

, and possible dealbreakers

Develops strategic analysis, strategic business risks, triangulation, internal controls, sampling, verification of management assertions, fraud risk assessment, and completing the attest engagement, which are core skills for audit professionals

Taught by Mark E. Peecher, PhD, CPA who are recognized for their work in corporate governance and business ethics

Examines evidence triangulation, which is a highly relevant concept in the field of auditing

Explores attribute sampling and unit sampling, which are standard in the industry of accounting

Builds a strong foundation for beginners in the field of auditing

Provides a continuation of the intensive conceptual and applied introduction to auditing topics

Reviews summary

Well-received auditing course

Learners say Auditing II: The Practice of Auditing is a highly recommended, well-structured course with practical examples and engaging content. This course is ideal for anyone looking to expand their auditing knowledge and preparation for a career in auditing. Many students reported that the instructor is knowledgeable, engaging, and made complex topics easy to understand.

Accessible and well-paced

"I feel the improvements in my work from both technical and conceptual aspects. if you are an auditor and want to have a deep knowledge of the audit concepts, I recommend both Auditing I and Auditing II.Thank you,"

"I am grateful for the opportunity to have taken this course, and I believe that it has been a valuable addition to my education."

Clear, well-organized, and practical

"The course content was well-organized and easy to follow."

"The variety of learning activities helped me to solidify my understanding of the material."

"Thank you Dr. Mark E Peecher for this amazing course, for the quality of the work you have done and for sharing with us both theoretical and practical knowledge about auditing."

"The course is very well structured, the language is clear, the real-world examples Prof. Peecher makes are extremely useful to understand how auditing works in practice."

Knowledgeable and engaging

"The instructor, Mr. Mark Peecher, was excellent and did a great job of presenting the material in a clear and concise way."

"I felt like I was able to learn at my own pace and in a way that was most effective for me."

"It is the best course for auditors that definitely will add value in their auditing profession."

"My love to Sir mark, for the effort he has done and provides us with valuable learnings that actually for the first time in my life, I didn't find auditing as a dry subject."

Activities

Be better prepared before your course. Deepen your understanding during and after it. Supplement your coursework and achieve mastery of the topics covered in Auditing II: The Practice of Auditing with these activities:

Form a study group with classmates

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Study groups can provide a supportive environment for learning and collaboration

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Identify classmates who are interested in forming a study group
Schedule regular meetings to discuss course material and work on assignments
Take turns leading discussions and presenting your understanding of the concepts

Explore the AICPA website for auditing resources

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The AICPA website offers a wealth of resources that can supplement your learning

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Visit the AICPA website and explore the Auditing & Attestation section
Review the resources available, such as articles, white papers, and webinars
Identify resources that are relevant to the topics covered in the course

Create a mind map of the course concepts

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Creating a mind map can help you visualize the relationships between different concepts

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Start with the main topic of the course
Draw branches for each of the subtopics
Add details and examples to support each subtopic

Four other activities

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Solve practice problems on audit procedures

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Practice problems will help you apply your knowledge and reinforce your understanding

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Find practice problems in your textbook or online resources
Review the problem and identify the relevant concepts
Apply your knowledge to solve the problem
Check your answer against the provided solution

Write a summary of the key audit procedures for a specific industry

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Summarizing key audit procedures will help you understand how they are applied in different contexts

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Choose an industry that you are interested in
Research the key audit procedures that are used in that industry
Write a report that summarizes your findings

Read the book 'Auditing & Assurance Services' by Alvin A. Arens and Randal J. Elder

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This book provides a comprehensive overview of auditing concepts and practices

View Auditing and Assurance Services, Global Edition on Amazon

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Read the chapters that correspond to the topics covered in the course
Take notes and highlight important concepts
Complete the end-of-chapter questions and exercises

Volunteer at a local accounting firm

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Volunteering can provide you with practical experience and insights into the field

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Identify local accounting firms that offer volunteering opportunities
Contact the firms and inquire about volunteering
Attend training and orientation sessions
Assist with tasks under the supervision of experienced professionals

Career center

Learners who complete Auditing II: The Practice of Auditing will develop knowledge and skills that may be useful to these careers:

Auditor

An Auditor examines financial records, typically for an accounting firm or a business's internal accounting department. This course introduces Auditing II: The Practice of Auditing. It provides a continuation of the intensive conceptual and applied introduction to auditing in society begun in Auditing I: Conceptual Foundations of Auditing. This course focuses on a conceptual framework that is applied by audit professionals to assess, evaluate, and manage audit risks and evidence.

See salaries and explore the career path for Auditor

Forensic Accountant

A Forensic Accountant works with law enforcement, attorneys, and regulatory bodies to investigate suspected financial crimes. Courses in auditing support the development of essential auditing and investigation knowledge. This course may also provide knowledge of financial crimes.

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Financial Manager

A Financial Manager plans, organizes, directs, controls, and evaluates financial activities of an organization. This course provides a continuation of the intensive conceptual and applied introduction to auditing in society begun in Auditing I: Conceptual Foundations of Auditing. It focuses on a conceptual framework that is applied by audit professionals to assess, evaluate, and manage audit risks and evidence. This may help the learner be able to pass certification exams, such as the Certified Financial Manager (CFM) exam.

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Risk Manager

A Risk Manager develops and implements risk management strategies to protect an organization from financial and operational risks. This course may provide a foundational understanding of risk assessment and mitigation., which are important aspects of risk management.

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Compliance Officer

A Compliance Officer ensures that an organization's activities comply with relevant laws and regulations. The study of auditing provides knowledge of internal controls and risk assessment, which are both relevant to compliance.

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Internal Auditor

An Internal Auditor examines financial records and internal controls to ensure that an organization is operating efficiently and in compliance with laws and regulations. This course provides a continuation of the intensive conceptual and applied introduction to auditing in society begun in Auditing I: Conceptual Foundations of Auditing. It focuses on a conceptual framework that is applied by audit professionals to assess, evaluate, and manage audit risks and evidence. This course may help students prepare for the Certified Internal Auditor (CIA) exam.

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Accountant

An Accountant prepares and examines financial records of an organization, typically for tax or accounting purposes. This course can help to develop an understanding of auditing principles and procedures, which can be valuable for Accountants.

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Financial Analyst

A Financial Analyst researches and interprets financial data to make investment recommendations. This course may provide knowledge of accounting and auditing principles, which can be helpful for understanding financial statements.

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Tax Accountant

A Tax Accountant prepares and files tax returns for individuals and businesses. Courses in auditing can help to develop the necessary skills in accounting and tax law.

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Management Consultant

A Management Consultant analyzes and develops solutions to improve an organization's efficiency and profitability. This course provides a continuation of the intensive conceptual and applied introduction to auditing in society begun in Auditing I: Conceptual Foundations of Auditing. It focuses on a conceptual framework that is applied by audit professionals to assess, evaluate, and manage audit risks and evidence. This may provide insight into how organizations operate and the challenges they face.

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Budget Analyst

A Budget Analyst prepares and analyzes budgets for an organization. The study of auditing can provide knowledge of accounting and financial management, which are both relevant to budget analysis.

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Loan Officer

A Loan Officer evaluates and approves loan applications. Courses in auditing can help to develop analytical and risk assessment skills, which are important for Loan Officers.

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Credit Analyst

A Credit Analyst assesses the creditworthiness of individuals and businesses. This course may provide knowledge of financial statement analysis and risk assessment, which are both relevant to credit analysis.

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Insurance Underwriter

An Insurance Underwriter assesses and approves insurance applications. This course may provide knowledge of risk assessment and financial analysis, which are both relevant to insurance underwriting.

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Actuary

An Actuary analyzes and manages financial risks for insurance companies and other organizations. This course may provide knowledge of risk assessment and financial analysis, which are both relevant to actuarial work.

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