Vision: Truth and Goodness in Man and for Mission: Produce through a responsive curriculum

all others through Education. Tomas Del Rosario College morally upright, committed and competent
Capitol Drive, San Jose, Balanga City graduates capable of meeting the growing
Tel No: (047) 237-3115; Tel No: (047) 791-6082 human resources needs in the profession,
government, business, industry and home.

Department: ACCOUNTANCY
Second Semester AY: 2021-2022

I. Course Code: II. Course Title:

PrE2&3 Auditing and Assurance Concepts and Applications
III. Course Credit: IV. Prerequisite:
6 UNITS PrE1 Auditing and Assurance Principles
V. Course Description:
Auditing and Assurance Concepts and Applications
Program Educational Objectives:
A graduate of BS Accountancy should be able to:
1. Resolve business issues and problems, with a global and strategic perspective using knowledge and technical proficiency in the
areas of financial accounting and reporting, cost accounting and management, accounting and control, taxation, and accounting
information systems;
2. Conduct accountancy research through independent studies of relevant literature and appropriate use of accounting theory
methodologies;
3. Employ technology as a business tool in capturing financial and non-financial information, generating reports and making
decisions,
4. Apply knowledge and skills to successfully respond to various types of assessments; and (including professional licensure and
certifications); and
5. Confidently maintain a commitment to good corporate citizenship, social responsibility and ethical practice in performing functions
as an accountant.
Student Learning Outcomes/Objectives:
By the time of graduation, BSA students will be able to:
1. Understand the ethical and regulatory environment for accountants and the role accountants play in society to provide and ensure the integrity
of financial, managerial and other information.
2. Apply the critical thinking and analytical skills that support professional skepticism, assessment, and assurance of accounting information.
 Vision: Truth and Goodness in Man and for Mission: Produce through a responsive curriculum
all others through Education. Tomas Del Rosario College morally upright, committed and competent
Capitol Drive, San Jose, Balanga City graduates capable of meeting the growing
Tel No: (047) 237-3115; Tel No: (047) 791-6082 human resources needs in the profession,
government, business, industry and home.

3. Develop communication skills that will allow them to effectively communicate financial and non-financial results.
4. Record, analyze, and interpret historical and prospective financial and non-financial information.
5. Use technology as appropriate to analyze financial and non-financial information.
6. Demonstrate an understanding of tax policy, strategy and compliance.
7. Understand international accounting issues and practices, including roles and responsibilities played by accountants within a global context.
Course General Objectives:
At the end of this course, students are expected to:
1. Perform basic internal audits.
2. Be able to comprehend and analyze actual auditing problems arising from auditing engagements.
3. Suggest or perform corrective actions (on internal control and reporting entries) to work on identified incorrect reporting.

IV. Course Content

Outcome-Based
Assessment of Learning
Teaching and
Time Desired Learning Outcomes (DLO) Course Content/Subject Matter Outcomes (ALO)
Learning (OBTL)
Frame (Intended Learning Outcomes) (Topics) (Assessment
(Teacher-Learner
Methods/Tasks)
Activities)
Prelim Period
1 -2
ST nd
 School Mission & Vision  Vision, Mission, Goals and Core Values  Lecture  Discussion/Oral
Session  Program outcomes  Course Overview  Teacher led- recitation of the
 Program Core Values  Rules and Policies class discussion vision, mission,
 Class Introduction  Audit of Cash on Hand  Illustrative and goals of the
 Audit of Cash & Cash  Audit of Cash in Bank Problems institution
Equivalents  Audit of Petty Cash Fund  Individual  Getting students’
 Bank Reconciliation sharing and expectations
 Proof of Cash discussion  Discussion
 Oral recitation
 Vision: Truth and Goodness in Man and for Mission: Produce through a responsive curriculum
all others through Education. Tomas Del Rosario College morally upright, committed and competent
Capitol Drive, San Jose, Balanga City graduates capable of meeting the growing
Tel No: (047) 237-3115; Tel No: (047) 791-6082 human resources needs in the profession,
government, business, industry and home.

 Quiz
 Audit of Loans and Receivables  Sources/Classifications of
Receivables
 Accounting for Cash Discounts
 Accounting for Freight Charges
 Accounting for Bad Debts  Lecture
 Allowance for Sales Discounts  Teacher led-  Discussion
3rd-6th class discussion
 Allowance for Sales Returns  Oral recitation
Session  Illustrative
 Audit of Accounts Receivable and  Quiz
Problems
related accounts
 Long-term Notes Receivable
 Loan Receivable
 Loan and Receivable Impairment
 Receivable Financing
 Audit of Inventories  Cost of Inventories  Lecture  Discussion
 Manufacturing and Merchandising Cost  Teacher led-  Oral recitation
Flows class discussion  Quiz
 Inventory Ownership  Illustrative
 Repurchase Agreements Problems
 Consignment Arrangement
7th – 9th  Accounting Systems for Inventory
Session  Accounting Methods for Purchases
 Lower of Cost and Net Realizable Value
 Cost Formula
 Purchase Commitments
 Foreign Currency Inventory Transactions
 Inventory Estimation
 Inventory Error Correction
10th – 11th  Introduction to Investments  Categories of Financial Asset  Lecture  Discussion
Session  Audit of Investment in Equity  Initial and Subsequent Measurement –
 Vision: Truth and Goodness in Man and for Mission: Produce through a responsive curriculum
all others through Education. Tomas Del Rosario College morally upright, committed and competent
Capitol Drive, San Jose, Balanga City graduates capable of meeting the growing
Tel No: (047) 237-3115; Tel No: (047) 791-6082 human resources needs in the profession,
government, business, industry and home.

Securities FA-FVTPL vs FA-FVTOCI  Teacher led-  Oral recitation

 Derecognition of Equity Securities class discussion  Quiz
 Dividends (Cash, Share, Property,  Illustrative
Liquidating Dividends) Problems
 Share Split and Special Assessment
 Stock Rights
 Reclassification
 Financial Statement Presentation of
Unrealized Gains/Losses
 Trade and Settlement Date Accounting
 Exchange of Financial Asset for non-
financial asset and vice versa
Prelim Exam – 15th Session
Midterm Period
 Categories of Investment in Debt  Lecture
Securities (FAAC, FVTOCI, FVTPL)  Teacher led-
 Initial Measurement; Computation class discussion
of Purchase Price  Illustrative  Discussion
16th – 17th  Audit of Investment in Debt
 Subsequent Measurement Problems  Oral recitation
Session Securities
 Derecognition  Quiz
 Reclassification
 Impairment and Expected Credit
Losses
18th – 19th  Audit of Investment in  Equity Method  Lecture  Discussion
Session Associate  Initial Measurement  Teacher led-  Oral recitation
 Subsequent Measurement class discussion  Quiz
 Investment Income  Illustrative
 Associate’s Preference Shares Problems
 Changes in Ownership Interest
 Vision: Truth and Goodness in Man and for Mission: Produce through a responsive curriculum
all others through Education. Tomas Del Rosario College morally upright, committed and competent
Capitol Drive, San Jose, Balanga City graduates capable of meeting the growing
Tel No: (047) 237-3115; Tel No: (047) 791-6082 human resources needs in the profession,
government, business, industry and home.

 Associate’s Heavy Losses and

Subsequent Recovery
 Upstream and Downstream
Transactions (Inventory and Fixed
Assets)
 Initial Measurement and  Lecture
Capitalizable Costs  Teacher led-
 Acquisition of Land and Building class discussion
 Accounting under Different Modes of  Illustrative  Discussion
20th – 21st  Audit of Plant, Property &
Acquisition Problems  Oral recitation
Session Equipment
 Government Grants & Government  Quiz
Assistance
 Borrowing Costs
 Different Depreciation Methods
 Initial Measurement  Lecture
 Subsequent Measurement  Teacher led-  Discussion
22nd
 Audit of Wasting Assets  Depreciation of Mining Equipment class discussion  Oral recitation
Session
 Liquidating Dividends  Illustrative  Quiz
 Financial Statement Presentation Problems
 Initial Measurement  Lecture
 Subsequent Measurement  Teacher led-
 Discussion
23rd  Audit of Investment in  Transfer to or from Investment class discussion
 Oral recitation
Session Property Property  Illustrative
 Quiz
 Derecognition Problems
 Financial Statement Presentation
Midterm Exam – 24th Session
Final Period
25th – 26th  Audit of Intangible Assets  Initial Measurement  Lecture  Discussion
Session
 Vision: Truth and Goodness in Man and for Mission: Produce through a responsive curriculum
all others through Education. Tomas Del Rosario College morally upright, committed and competent
Capitol Drive, San Jose, Balanga City graduates capable of meeting the growing
Tel No: (047) 237-3115; Tel No: (047) 791-6082 human resources needs in the profession,
government, business, industry and home.

 Research and Development Cost

 Subsequent Measurement
 Amortization
 Patent
 Copyright
 Teacher led-
 Franchise
class discussion  Oral recitation
 Leasehold or Lease Right
 Illustrative  Quiz
 Leasehold Improvement
Problems
 Trademark
 Customer List
 Website Cost
 Goodwill
 Derecognition
 Subsequent Measurement –
Revaluation Model  Lecture
 Revaluation, Impairment and  Impairment of Assets  Teacher led-  Discussion
27th
Non-Current Asset Held for  Cash Generating Units class discussion  Oral recitation
Session
Sale  Disclosures  Illustrative  Quiz
 Non-Current Asset Held for Sale Problems
 Discontinued Operations
28th – 29th  Introduction to Liabilities  Initial Recognition  Lecture  Discussion
Session  Financial Liabilities and Debt  Classification of Financial Liabilities  Teacher led-  Oral recitation
Restructuring  Derecognition of Financial Liabilities class discussion  Quiz
 Financial Statement Presentation  Illustrative
 Warranty Liability Problems
 Financial Liabilities
 Bonds Payable
 Compound Financial Instruments
 Vision: Truth and Goodness in Man and for Mission: Produce through a responsive curriculum
all others through Education. Tomas Del Rosario College morally upright, committed and competent
Capitol Drive, San Jose, Balanga City graduates capable of meeting the growing
Tel No: (047) 237-3115; Tel No: (047) 791-6082 human resources needs in the profession,
government, business, industry and home.

 Convertible Bonds
 Notes Payable
 Debt Restructuring
 Types of Lease
 Accounting for Operating Lease  Lecture
 Accounting for Finance Lease  Teacher led-  Discussion
30th – 31st
 Leases  Lease of Land and Building class discussion  Oral recitation
Session
 Sales-Type Lease  Illustrative  Quiz
 Sale and Leaseback Problems
 PFRS 16 Leases
 Shareholders’ Equity
 Share Capital
 Legal Capital
 Subscriptions
 Treasury Shares
 Donated Capital
 Lecture
 Retirement of Share Capital
 Audit of Shareholder’s Equity  Teacher led-  Discussion
32nd – 33rd  Preference Shares
 Book Value and Earnings Per class discussion  Oral recitation
Session  Recapitalization
Share  Illustrative  Quiz
 Share Warrants
Problems
 Retained Earnings
 Dividends out of Earnings
 Dividends out of Capital
 Book Value per Share
 Earnings per Share
 Diluted Earnings per Share
34th – 35th  Statement of Financial  Financial Statements  Lecture  Discussion
Session Position and Comprehensive  Events After the Reporting Period  Teacher led-  Oral recitation
Vision: Truth and Goodness in Man and for Mission: Produce through a responsive curriculum
all others through Education. Tomas Del Rosario College morally upright, committed and competent
Capitol Drive, San Jose, Balanga City graduates capable of meeting the growing
Tel No: (047) 237-3115; Tel No: (047) 791-6082 human resources needs in the profession,
government, business, industry and home.

 Related Party Disclosures

 Statement of Cash Flows
 Operating Activities
 Direct and Indirect Method class discussion
Income
Presentation of Operating Cash  Illustrative  Quiz
 Statement of Cash Flows
Flows Problems
 Investing Activities
 Financing Activities
 Non-Cash Transactions
Final Exam – 36th Session

V. Course Requirement/Course Assessment (Grading System)

1. Quizzes – 65% of Class Standing
2. Recitation – 25% of Class Standing
3. Attendance – 10% of Class Standing
4. Long Exams computed as follows:

A. PRELIMS AVERAGE: D. FINAL GRADE

CSx2+Examination Rating PA+MA+FA
3 3

B. MID-TERM AVERAGE
CSx2+Examination Rating
3

C. FINAL AVERAGE
CSx2+Examination Rating
 Vision: Truth and Goodness in Man and for Mission: Produce through a responsive curriculum
all others through Education. Tomas Del Rosario College morally upright, committed and competent
Capitol Drive, San Jose, Balanga City graduates capable of meeting the growing
Tel No: (047) 237-3115; Tel No: (047) 791-6082 human resources needs in the profession,
government, business, industry and home.

VI. References

Prepared by: Reviewed by: Recommending Approval:

RACHELLE ANNE C. REYES, CPA JEFFERSON L. TRIGUERO, MBA LUISA M. ISIDRO, Ph. D.
Instructor Department Chair College Dean (OIC)

Approved:

MERCEDES G. SANCHEZ, Ed. D.

Vice President for Academics, Student Affairs and Extension Services