Republic of the Philippines

UNIVERSITY OF EASTERN PHILIPPINES

University Town, Northern Samar, Philippines
Web: http://uep.edu.ph; Email: uepnsofficial@gmail.com

COLLEGE OF BUSINESS ADMINISTRATION

Bachelor of Science in Accountancy
Syllabus in IC3 (Integrative Course in Auditing)
2nd Semester, SY 2023-2024

UEP’s Vision: A globally competitive university producing graduates in pursuit of higher Institutional Graduate Outcomes: Graduate of the University of Eastern Philippines should:
economic welfare of the people and the community through inclusion and cooperation from
the stakeholders. 1. Exhibit proficiency in their chosen field of discipline through their involvement in various

UEP’s Mission: Provide technical and professional training, advanced instruction in literature, types of employment;
arts, philosophy, the sciences and promotion of innovation, scientific and technological 2. Utilize research methodologies that will allow them to generate new knowledge and
researches.
address problems and issues and promote development;
UEP Goals: To continually explore better opportunities to enhance instruction, research, 3. Values Philippine historical and cultural heritage;
extension and production through linkages that will optimize utilization of resources of both
government and non-government institutions. 4. Demonstrate global awareness through responsible global citizenship;
5. Clearly communicate in several modes of delivery (oral, written, and visual) in English and
Objectives:
1. To expand the human resource development by providing necessary learning and Filipino; and
development to all faculty and staff for global competitiveness; 6. Manifest high degree of professionalism through observation of ethical and professional
2. To enrich student development through enhancing academic programs;
3. To develop research, development, and extension programs towards poverty behavior.
reduction through food security, environment, livelihood, and employment;
4. To rationalize the university’s financial expenditures;

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 5. To improve the physical resources necessary and available to support the university
fulfill its programs, projects and activities; and
6. To improve efficiency and effectiveness of administrative systems and accountability
for performance.

College Goals Program Outcomes

To provide quality business education through instruction, extension and production in the A graduate of a Bachelor of Science in Accountancy should be able to:
fields of Accountancy, Business Economics, Cooperative, Entrepreneurship, Hotel and
1. Articulate the latest developments through generation of new knowledge or in research
Restaurant Management, BSBA Management and Marketing and other business related and development projects aligned through local and national development agenda or
courses. goals in the specific field of practice.
2. Effectively communicate orally and in writing using English and Filipino and other foreign
languages.
3. Work independently and effectively with other multi-disciplinary and multi-cultural teams.
4. Act in recognition of professional, social, and ethical responsibilities as well as
demonstrate corporate citizenship.
5. Preserve and promote Filipino historical and cultural heritage.
6. Implement the basic functions of management and use the proper decision tools to
critically, analytically, and creatively solve problems and drive results.
7. Effectively and efficiently use and employ information and communications technology as
a business tool.
8. Demonstrate working knowledge in the areas of financial accounting and reporting, cost
accounting and management accounting, auditing, accounting information systems and
accounting research.
9. Demonstrate self confidence in performing functions as a professional accountant.
10. Apply required knowledge and skills to pass professional licensure/certification
examinations.

Course Title: Integrative Course in Auditing

Course Credits: 3 Contact Hours/Week: 3

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Course Description: An integration and review of the concepts and applications of Governance, Business Ethics, Risk Management and Internal control; Auditing
& Assurance Principles; Auditing & Assurance: Concepts and Applications 1 & 2; Auditing & Assurance: Specialized Industries; and Auditing
in a CIS Environment.
Prerequisite: All auditing (AUD) subjects
Course Learning Outcomes At the end of this course, the students should be able to:
Knowledge
1. Demonstrate a working knowledge in the area of auditing.
2. Apply required knowledge and skills to pass professional licensure/certification examinations.

Values
1. Demonstrate self confidence in performing functions as a professional accountant.

Number of Hours: 3 hours every week for 18 weeks or 54 hours in a semester

COURSE OUTLINE AND TIMEFRAME
Weeks COURSE CONTENT/SUBJECT MATTER
1 VMGO of the University, the College and the Accountancy Department; Class Orientation
Topic 1: Fundamentals of auditing and assurance service
1
Pre-engagement activities: Client acceptance and continuance
2 Topic 2: Audit planning, supervision and monitoring
3 Topic 3: Understanding the entity and its environment
4 Topic 4: Audit objectives, procedures, evidences and documentation
5 Topic 5: Audit of the different transaction cycles
6 Topic 6: Completing the audit and post-audit responsibilities
7 Topic 7: Reports on audited financial statements
8 Topic 8: Auditing in a Computerized Information Systems (CIS) environment
9 Topic 9: Audit sampling
10 COMPREHENSIVE EXAMINATION

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LEARNING PLAN
Teaching and
Learning Outcomes Learning Performanc
Assessm Time
Program activities/ e Standard
Course Content/Topic ent Resources Allotme
Outcomes Instructional
Tasks nt
Delivery/Met
hod
1. Demonstrate a 1. Differentiate the types of 1. Fundamentals of Auditing and Assurance Quiz Quiz  Glossary of Terms (December 2002) 1 weeks
working knowledge assurance engagements Services Discussion  IAASB – Interim Terms of Reference
in the area of 2. Differentiate the different types o Introduction to assurance engagements Compreh (August 2004)
auditing. of audit  Nature, objective and elements ensive  Philippine Framework for Assurance
2. Apply required 3. Understand and recall the  Types of assurance engagements (audits, Exam Engagements
knowledge and elements of an assurance reviews, other assurance engagements)  Preface to International Standards
skills to pass engagement  Assurance services vis-à-vis attestation and Philippine Standards
professional 4. Understand and recall the services  PSA 120, Framework of Philippine
licensure/certificati elements of a system of quality o Introduction to auditing Standards on Auditing
on examinations. control  Nature, philosophy, objectives  PSA 220 (Revised), Quality
3. Demonstrate self 5. Understand the ethical  Types of audit Management for and Audit of
confidence in principles applicable to  According to nature of assertion/data Financial Statements
performing professional accountants (financial statements audit, operational  Code of ethics for professional
functions as a 6. Understand the factors to audit, compliance audit) accountants
professional consider in deciding on whether  According to types of auditor (external  PSA 200, Overall Objectives of the
accountant. to accept / retain a client or independent financial statements audit, Independent Auditor and the Conduct
specific engagement internal audit, government audit) of an Audit in Accordance with
o Quality controls International Standards on Auditing
o Code of ethics for professional accountants  PSA 210, Agreeing the Terms of
o Fundamental principles Audit Engagements
o Threats to fundamental principles
o Client acceptance and continuance
 Overview of the audit process
 Pre-engagement procedures
 Agreeing the terms of the engagement
1. Understand the factors to 2. Audit Planning, Supervision and Monitoring Quiz Quiz  PSA 300, Planning an Audit of 1 week
consider in planning an audit o Scope and purposes of audit planning Financial Statements
engagement o Knowledge of the business Discussion  PSA 320, Materiality in Planning and
o Preliminary analytical procedures Performing an Audit

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 2. Understand the PSA o Materiality Comprehe  PSA 240, The Auditor’s Responsibility
requirements in the planning o Assessing and managing audit risk nsive to Consider Fraud in an Audit of
phase of an audit o Overall audit plan and audit program exam Financial Statements
o Direction, supervision and review  PSA 250, Consideration of Laws and
Regulations in an Audit of Financial
Statements
 PSA 600, Special Considerations –
Audits of Group Financial Statements
(Including the Work of Component
Auditors)
 PSA 610, Using the Work of Internal
Auditors
 PSA 620, Using the Work of an
Expert
1. Understand the different 3 Understanding the Entity and its Quiz Quiz  PSA 260, Communication with Those
aspects of an entity that the Environment, The Applicable Financial Charged with Governance
auditor needs to understand Reporting Framework, and the Entity’s Discussion Comprehe  PSA 265, Communicating
2. Understand the procedures to System of Internal Control nsive Deficiencies in Internal Control to
be performed in order to obtain o Management’s assertions exam Those Charged with Governance and
such an understanding o Risk assessment procedures Management
3. Understand the elements of o Obtaining an understanding of the entity  PSA 315 (Revised 2019), Identifying
elements of internal control and its environment, the applicable financial and Assessing the Risks of Material
4. Appraise a client’s internal reporting framework, and the entity’s system Misstatement
control in the different of internal control
transaction cycles o Assessing inherent risk
o Spectrum of inherent risk
o Significant risks
o Risks for which substantive tests alone do
not provide sufficient appropriate audit
evidence
o Assessing control risk
o Discussion among the engagement team
o Internal control
i. Basic concepts and elements of internal
control
ii. Consideration of accounting and internal
control systems
 Understanding and documentation

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  Assessment of control risks
 Test of controls
 Documentation
o Scalability
o Communicating with those charged with
governance and management
1. Know the purpose of and the 4 Audit Objectives, Procedures, Evidences Quiz Quiz  PSA 230, Audit Documentation 1 week
activities undertaken in tests of and Documentation  PSA 330, The Auditor’s Responses
controls and substantive o Nature and significance Discussion Comprehe to Assessed Risks
procedures o Evidential matters nsive  PSA 500, Audit Evidence
2. Understand the management’s o Audit procedures/techniques exam  PSA 501, Audit Evidence –
financial assertions relating to o Audit working papers Additional Consideration on Specific
account balances, transactions Items
and disclosures and identify the  PSA 520, Analytical Procedures
procedures relevant to test  PSA 540, Auditing Accounting
these assertions Estimates, Including Fair Value
3. Understand the purpose of Accounting Estimates and Related
audit documentation and how Disclosures
an audit working paper is  PSA 550, Related Parties
prepared
4. Understand audit sampling as it
applies to tests of controls and
substantive procedures
1. Understand the process flow of 5. Audit of the Different Transaction Cycles Quiz Quiz Applied Auditing by Darrel Asuncion 1 week
each transaction cycle, o Order to cash et.a.
including the department, o Purchase to pay Discussion Comprehe
personnel and documents o Plan to inventory nsive
involved o Hire to retire exam
2. Understand the control o Record to report Principles of Auditing & Other
activities in each transaction Assurance Services, 22nd edition by O.
cycle
Ray Whittington & Kurt Pany
3. Understand the auditor’s
objectives in the audit of the
different transaction cycles
4. Understand the audit
procedures performed by the
auditor

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 1. Understanding the activities 6. Completing the Audit/Post-Audit Quiz Quiz  PSA 560, Subsequent Events 1 week
undertaken during the Responsibilities  PSA 570, Going Concern
completion phase of the audit o Completing the audit and audit report Discussion Comprehe  PSA 580, Written Representations
2. Understand auditor’s preparation nsive
responsibilities after the  Analytical procedures for overall review exam
auditor’s report has been  Related party transactions
issued including concerning  Subsequent events review
subsequent discovery of facts  Assessment of going concern assumption
existing at report date and  Obtaining client’s representation letter
consideration of omitted  Evaluating findings, formulating an opinion
procedures after the report and drafting the audit report
date.
o Post-audit responsibilities
 Subsequent discovery of facts
 Subsequent discovery of omitted
procedures
1. Understand the form and 7. Reports on Audited Financial Statements Quiz Quiz  PSA 700, Forming an Opinion and 1 week
content of the unmodified o The unmodified auditor’s report Reporting on Financial Statements
auditor’s report. o Basic elements of the unmodified auditor’s Discussion Comprehe  PSA 701, Key Audit Matters
2. Know the circumstances report nsive  PSA 705, Modifications to the Opinion
requiring modifications of and o Key Audit Matters exam in the Independent Auditor’s Report
its effect on the auditor’s report. o Emphasis of matter and other matter  PSA 706, Emphasis of Matter and
3. Appraise an independent o Going concern Other Matter Paragraphs in the
auditor’s report for correctness o Modified auditor’s report Independent Auditor’s Report
in accordance the the PSAs.  Matters that do not affect the auditor’s  PSA 710, Comparative Information –
4. Know when emphasis of matter opinion Corresponding Figures and
and other matters paragraph  Matters that do affect the auditor’s opinion Comparative Financial Statements
are used o Other considerations  PSA 720, The Auditor’s
5. Know how to deal with  Report on comparatives Responsibilities Relating to Other
supplementary information  Other information Information in Documents Containing
presented with the FS and Audited Financial Statements
other information in documents
containing audited FS
1. Understand the impact of 8. Auditing in a Computerized Information Quiz Quiz Auditing & Assurance Principles, by 1 week
computerized information Systems (CIS) Environment Raymund Francis Escala et al
systems (CIS) on a client’s o Internal control in a CIS environment Discussion Comprehe
internal control i. Introduction nsive
exam

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 2. Understand the difference in ii. Impact of computers on accounting and Principles of Auditing & Assurance
transaction processing and internal control systems Services, 2023 edition by E. B. Cabrera
control system between a CIS  General controls et. al.
and a non-CIS environment  Application controls
3. Understand the approaches iii. Unique characteristics of specific CIS
and procedures that an auditor  Stand alone
can use in performing audit  On-line
tests on a client in a CIS  Database system
Environment o Basic approach to the audit of CIS
environment
i. Introduction
ii. Effects of computers on the audit process
iii. Computer assisted audit techniques
1. Understand the basic concepts 9. Audit Sampling Quiz Quiz  PSA 530, Audit Sampling 1 week
of sampling in audit A. Basic concepts  Principles of Auditing & Other
2. Perform audit sampling in 1. Procedures which do not involve Discussion Com Assurance Services, 22nd edition
testing controls and substantive sampling preh by O. Ray Whittington & Kurt Pany
tests 2. Sampling vs. non-sampling risk ensiv
3. Statistical vs. non-statistical sampling e
4. Attributes and variables sampling exam
5. Sample design, sample size, sample
selection and sample evaluation
B. Sampling for test of controls (sampling
risk, sample size, steps in application of
audit sampling)
C. Sampling for substantive tests
1. Sampling risk
2. Sample size
3. Steps in application of audit sampling
4. Classical variables sampling
5. Probability-proportional-to-size
sampling
References A. Book
Auditing & Assurance Principles, 2022 edition, by Raymund Francis Escala et al.
Principles of Auditing and Assurance Services, 2023 edition, by Elenita B. Cabrera et. al.
Principles of Auditing & Other Assurance Services, 22nd edition, by O. Ray Whittington and Kurt Pany
B. Periodicals/Journals
n/a

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 C. Website
www.aasc.org.ph
D. Culminating Activities
Comprehensive examination

Required Readings and Other Materials

Philippine Standards on Auditing downloadable at aasc.org.ph (please refer to the learning plan for the specific PSAs applicable per topic)

Suggested Readings
Applied Auditing Book 1, 2021 edition, by Darrell Joe O. Asuncion et. al.
Applied Auditing Book 2, 2022 edition, by Darrell Joe O. Asuncion et. al.
Auditing & Assurance Principles, 2022 edition, by Raymund Francis Escala et al.
Principles of Auditing and Assurance Services, 2023 edition, by Elenita B. Cabrera et. al.
Principles of Auditing & Other Assurance Services, 22nd edition, by O. Ray Whittington and Kurt Pany
Website/Videos/Film Clips
n/a
Class materials
n/a

Course Requirements Classroom Policies

Each student is required to: 1. Students are required to observe proper decorum in class at all times; such as, maintaining silence during class when not
a. participate in recitations and other activities; reciting, seeking permission to step out of the room during class hours, etc.
2. Students are to wear complete uniform (with ID) as prescribed by the department and the university.
b. submit homeworks / assignments;
3. Cellphones, laptops, tablets, and other electronic gadgets should be turned off or put in silent mode while in class.
c. pass the quizzes and exams. 4. Cellphones are not allowed to be used as calculators. During seatworks, quizzes and exams, students are not allowed to
borrow calculators from classmates.
5. In case of illness, the faculty-in-charge should be notified and shown a medical certificate.
6. If for any valid reason the student will not be able to attend the class, an excuse letter should be presented to avoid being
marked absent.
7. Any student who decides to drop the course (within the allowable period) should submit a copy of the dropping slip to the
teacher, to be given an official grade of DROPPED. Otherwise, the student receives a grade of 5.0.
8. Anyone caught cheating (in any form) will automatically get a failing grade.
9. All written reports and assignments should be submitted on the scheduled date. Late submissions will not be accepted.
10. The faculty-in-charge should be notified in case the student will not be able to take any quizzes and major exams. Upon
failure to do so, the student will be given a score of zero for the missed exam.

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 11. ONLY black or blue colored ballpens are allowed during quizzes and any exams.
Grading System: Professor: Joan E. Abayon Consultation Hours:
10% behavior Email Address: joanabayon.uep@gmail.com MWF: 1-4:30pm
50% quizzes Contact Number: 0965-8395136
40% comprehensive exam
RUBRICS
N/A

PREPARED BY: CHECKED BY: APPROVED BY:

JOAN E. ABAYON HYACINTH INDIRA D. HIPE, MBA ATTY. EMILY S. ACOMPAÑADO, CPA, DPA, JSD
Faculty Department Chair, Accountancy Dean
Date: Date: Date:

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