Auditing Theory and Application I

Course Code: ACG 4632

Credit Hours: 3

Effective beginning: 2022-23


Course Description:
Auditing I concerns external financial auditing, in which independent auditors will come from a CPA firm to audit a client company’s financial statements. We will concentrate on the process of gathering and evaluating evidence to determine whether the client’s financial statements are fairly presented in accordance with GAAP. We will also see how audit results are reported to readers of the client’s financial statements.

Course Details


ACG 3111


As assigned


Required textbooks/ course materials:

Financial Statement Auditing: A Risk-Based Approach (plus access to MindTap), Johnstone/Gramling/Rittenberg, 11th, Cengage Publishing, 2019. ISBN: 9781337619509.

CPA AUD Supplemental Course (with professor-led platform, 6-month access), Gleim, 2022.  ISBN: 9781618544889.

Cengage Unlimited:
1-semester subscription: ISBN 9780357700006
1-year subscription: ISBN 9780357700013
2-year subscription: ISBN 9780357700020



Assignment/course outline:

The following topics will be covered in this course at the discretion of the instructor:   

  • Auditing and Assurance Services   
  • Professional Standards   
  • Engagement Planning   
  • Management Fraud and Audit Risk   
  • Risk Assessment: Internal Control Evaluation 
  • Employment Fraud and the Audit of Cash   
  • Revenue and Collection Cycle   
  • Acquisition and Expenditure Cycle   
  • Production Cycle   
  • Finance and Investment Cycle   
  • Completing the Audit   
  • Reports on Audited Financial Statements

See your Instructor First Day Handout for individual instructor assignment schedule.


Discipline-level learning outcomes:

BA-1 Exhibit knowledge of accounting, finance, management, legal, operations and marketing.  

BA-2 Identify MIS, economics, technology, statistical data and decision support tools for making effective business decisions.

BA-3 Recognize the impact of today’s global economy, diversity and cultures on businesses.

BA-4 Comprehend how effective leadership, teamwork and ethics relate to best business practices.           

BA-5 Use effective oral and written communication skills, including effective research techniques.


Course-level learning outcomes:

Course-level student learning outcomesDiscipline-level learning outcomesAssessment methods
Defend the complete audit process based upon your knowledge of Accounting Information Systems and Auditing I

BA-1, BA-2, BA-3, BA-4, BA-5

Homework, tests, quizzes
Evaluate audit reports, as well as modifications

BA-1, BA-2, BA-3, BA-4, BA-5

Homework, tests, quizzes

Develop a basic audit plan

BA-1, BA-2, BA-3, BA-4, BA-5

Homework, tests, quizzes
Contrast specific issues involving SEC (publicly-traded) audit clients

BA-1, BA-2, BA-3, BA-4, BA-5

Homework, tests, quizzes
Formulate evidence-gathering to specific issues, including the audit risk model and qualities of evidence

BA-1, BA-2, BA-3, BA-4, BA-5

Homework, tests, quizzes
Compose statistical sampling in tests of transactions

BA-1, BA-2, BA-3, BA-4, BA-5

Homework, tests, quizzes
Contrast and comprehend authoritative guidance for auditing

BA-1, BA-2, BA-3, BA-4, BA-5

Homework, tests, quizzes
Synthesize appropriate ethical conduct in your work, as well as understand issues relating to auditor ethics

BA-1, BA-2, BA-3, BA-4, BA-5

Homework, tests, quizzes
Synthesize auditing issues on the Internet, as well as other appropriate media

BA-1, BA-2, BA-3, BA-4, BA-5

Homework, tests, quizzes



Means of accomplishing learning outcomes:

  1. Attend and participate in class regularly.
  2. Read all assigned material before class.
  3. Study in-class notes and online (Canvas) materials.
  4. Complete assigned projects in a timely manner to enable reflections and revisions on the final product.
  5. Participate in discussions.
  6. Demonstrate your mastery of the required skills on quizzes, exams, etc.
  7. Complete all assignments with promptness and accuracy.
  8. All written documents as well as online assignments must be completed using correct grammar, spelling, and structure.


The grading breakdown is subject to change at the discretion of the instructor.


up to 40%

Test (which includes Midterm and Final) 

up to 60%

Assignments, Projects and/or Labs     

up to 40%


up to 20%


Please see your first day handout for individual instructor grading schemes.


College-wide policies and resources

For more specific information on Chipola's college-wide academic policies and resources available to students, visit the link below.