ArgosyUniversity

COURSE SYLLABUS

B7650

Accounting Control Systems

Faculty Information

Faculty Name: Dr Bob Castaneda, CPA

Campus: Argosy Chicago

Contact Information: 312-498-2028

Office Hours: 9AM to 9PM Mon thru Saturday

Short Faculty Bio: Roberto Castaneda received his graduate degree (DBA) in Accounting from Argosy University/Schaumburg; (MM/MBA) in Marketing and Finance from NorthwesternUniversity, and his undergraduate degree in Accounting and Marketing from DePaulUniversity. He is also a Certified Public Accountant. Dr. Castaneda has worked in senior finance positions at American Express, PepsiCo and McDonald’s Corporation in a number of international countries.

Course description: This course will study the development and use of financial control systems. The primary emphasis of this course will be on the effect of legislation and the assurance services required by regulators and associations in the development, implementation and, monitoring of control systems. A secondary focus will be on issues faced by controllers and other financial managers in administering accounting control systems.

Course Pre-requisites: None

Required Textbook:

Whittington, R. and Pany. K. (2006) Principles of Auditing and Other Assurances Services. (15th ed.). McGraw Hill. ISBN# 007-329192-7

Author’s website

Course length: 7.5 Weeks

Contact Hours: 45 Hours

Credit Value: 3.0

COURSE INFORMATION

Summer I 2008

May 5 through June 25, 2008

Course Credit Hours: 3

Meeting Times: Saturday 9 AM to 1 PM

In Class Meetings

Session DATESTIMES

Session 105/10/089AM to 1PM

Session 205/17/089AM to 1PM

Session 305/24/089AM to 1PM

Session 405/31/089AM to 1PM

Session 506/07/089AM to 1PM

Session 606/14/089AM to 1PM

Session 706/21/089AM to 1PM

Classroom: TBA

Program Outcomes:

  1. Research
  2. Performing – Design, conduct, and justify applied research in a business context using appropriate methodology
  3. Understanding – Evaluate and apply existing theory and research to current business practice
  4. Communication
  5. Oral – Present orally, complex business information that is concise, clear, organized, and well supported in a professional manner appropriate to the business context
  6. Written – Present in writing, complex business information that is concise, clear, organized, and well supported in a professional manner appropriate to the business context using required format
  7. Critical Thinking/Problem Solving
  8. Critical thinking – Evaluate relevance of established theory to current business practice and identify gaps in current literature
  9. Problem Solving/Decision Making – Given a business situation, diagnose the underlying causes of the situation, evaluate possible solutions, in relation to underlying business theory and determine and defend appropriate course of action
  10. Information Literacy - Conduct an exhaustive literature search from a variety of sources, evaluate the credibility of the sources, and apply that information to create new knowledge
  11. Team
  12. Leadership - Conduct an exhaustive literature search from a variety of sources, evaluate the credibility of the sources, and apply that information to create new knowledge
  13. Collaboration - Given a case study or business situation collect, assimilate, and disseminate the views of stakeholders
  14. Ethics
  15. Ethics - Given a case study or business situations, evaluate the ethical dimensions of decision situations and personal, social, and corporate responsibility not absolved by market forces
  16. Diversity
  17. Diversity - Given a case study or business situation evaluate the multicultural dimensions of decision situations and multicultural solutions to business situations

Accounting Concentration

  1. Analysis
  2. Financial Analysis - Evaluate results of accounting analyses including audit, financial, and risk analyses to determine appropriate business strategies
  3. Systems - Evaluate effectiveness of comprehensive accounting systems in meeting the goals of an organization

Course Objectives:

  1. Analyze the different levels of control weaknesses that can exist in companies. (Program Outcomes: 1.1, 1.2, 3.1, 7.1, 7.2)
  2. Examine assurance services and their relationship with attestation engagements.(Program Outcomes: 2.2, 3.1, 3.3)
  3. Examine the regulatory process for auditors of public companies and auditors of nonpublic companies.(Program Outcomes: 1.1, 1.2, 2.2)
  4. Compare and contrast the various types of audits, reports and types of auditors.(Program Outcomes: 2.1, 2.2, 3.1, 3.3)
  5. Analyze how public accounting firms are typically organized, and the responsibilities of auditors at the various levels in the organization.(Program Outcomes: 1.1, 2.2, 3.3, 6.1)
  6. Examine how major professional and regulatory organizations affect the accounting profession. (Program Outcomes: 2.2, 3.3)
  7. Examinethe authoritative status of the Statements on Auditing Standardsand analyze the ten generally accepted auditing standards. (Program Outcomes: 2.2, 3.3)
  8. Evaluate theauditor’s and management’s respective responsibilities and ethical implications for detecting errors, fraud, and illegal acts.(Program Outcomes:3.1, 3.2, 3.3, 4.1, 5.1)
  9. Examine the attestation standards and the quality control standards.Program Outcomes: 1.1, 1.2, 3.3
  10. Assess the risks of material misstatement (inherent and control risks) of assets and liabilities.(Program Outcomes: 1.1, 1.2, 7.2)
  11. Analyze the fundamental controls over the business processes related to assets and liabilities and owners equity.(Program Outcomes: 1.1, 1.2, 3.1, 7.1, 7.2)
  12. Analyze typical tests of controls used by auditors and managers to support the assessed levels of control risk for the financial statement assertions related to cash and financial investments.(Program Outcomes: 1.1, 1.2, 7.1, 7.2)

Methods of Instruction

Instructional methods used in this class are indicated below:

LectureOnline Discussion

Skill DemonstrationsResearch Project

Class PresentationsGroup Project

COURSE BIBLIOGRAPHY AND RESOURCE MATERIALS

JOURNALS AND PERIODICALS

The Wall Street JournalCFO Magazine

International Journal of AuditingInstitute of Internal Auditors

Business WeekAccountancymagazine.com

Journal of AccountancyJournal of Accounting Research

WORLD WIDE WEB

erid=10&md5=7fbfd9deb61c1bc3392c8842db214bd0

CASE STUDIES

Case studies should be a minimum of 300 words due through out the course. The topics selected are included in the assignments below. A team project on Sarbanes-Oxley will be turned in at the end of the project (minimum of 5 pages). We will cover these cases in each of the class sessions.Please use APA style guidelines when completing this assignment.

Students are asked to come prepared with the following class readings-

PREASSIGNMENT for Sessions 1 and 2

• Read Chapters 1 and 2Principles of Auditing and other Assurance Services

• Bring in an article from a recent auditing research study identifying some of the changes in the auditing profession (can be either internal or external audit discussions). These articles should be fromwithin the previous six months and be prepared to discuss the implications to the accounting profession-

Assignment Table

Content Sequence / Readings / Assignments
1 / Public Accounting and its role in the US Economy in terms of-
  1. Value (need does it fulfill) that public accounting bring to the market place.
  2. Major stakeholders for public accountants
  3. How the US regulatory environment shaped the role of public accountants in the market place today.
Regulatory process for auditors in public and nonpublic companies
  1. Major regulatory bodies governing public accountantsand their related interface.
  2. Major processes that need to occur to be a licensed public accountant (public versus private companies).
  3. Type of ongoing requirements needed to maintain a CPA status in good standing to continue performing attestation work.
/ Chapter 1
Chapter 2 / Chapter 1
1-1, 1-3, 1-21, 1-24, 1-28, 1-30, 1-31, 1-34
Chapter 2
2-1, 2-6, 2-14, 2-18, 2-20, 2-24, 2-25, 2-27, 2-28, 2-36
2 / Attestation function of auditors and the type of assurance services they perform
  1. Attestation with public companies
  2. Attestation with nonpublic companies
  3. Attestation on special purpose work
Auditor liabilities-
  1. Known users of financial statements
  2. Unknown users of financial statements
  3. Foreseen users of financial statements
  4. Clients-breach of contract/fraud/negligence/statutory liability
/ Chapter 3
Chapter 4
Chapter 8 / Chapter 3
3-1, 3-3, 3-14, 3-28, 3-29, 3-33, 3-35, 3-36
WorldCom
Enron Corporation
Auditor Independence Case Studies
Chapter 4
4-1, 1-12, 4-18, 4-26, 4-31, 4-34, 4-41
ESM Securities Case
8-14, 8-30, 8-31, 8-36 and 8-37
3 / Material misstatements in financial statements—
  1. Types of control deficiencies and their impact on the financial statements including-
  2. Significant deficiency
  3. Deficiency
  4. Material weakness
  5. Impact of compensating and complimentary controls on a firm’s control systems
  6. Distinguishing factors between significant deficiency and material weakness.
/ Chapter 10
Chapter 11 / 10-13-, 10-14, 10-35, and 10-38
11-25, 11-29, 11-38, and 11-45
4 / Attestation standards and quality control standards
  1. Quality control measures used today to ensure control standards are in place both in the public company and with external auditors.
  2. Requirements by statement of auditing standards on ensuring auditing compliance standards are being met.
  3. Management’s review of internal controls over the organization and the certification process.
  4. Auditor’s satisfaction of management assurances on internal controls.
/ Chapter 12
Chapter 13 / 12-23, 12-24, 12-27, 12-32
13-31 through 13-32 and 13-36
5 / Fundamental internal controls that need to be in place for liabilities and owners equity to be properly recorded
  1. Controls and testing on ensuring that liabilities are properly recorded on the part of management and auditors.
  2. Negative versus positive confirmation on liabilities and the responsibilities of management and external auditors.
  3. Board of director documentation and maintenance of board of director minutes.
  4. Management responsibility on internal controls in the organization.
/ Chapter 14
Chapter 15 / 14-34, 14-37 and 14-43
15-30, 15-31, 15-34 and 15-35
6 / Types of auditor reports-
1)Qualified
2)Unqualified
3)Going Concern
4)Significant Deficiency
5)Disclaimer
6)Special Purpose / Chapter 17 / 17-3, 17-7, 17-9, 17-20, 17-25, 17-26
Metropolitan Power Supply case study
7 / Sarbanes Oxley and Manager’s Financial Reporting Responsibility in Public Corporations today
  1. Responsibility on the part of external auditors and management with regard to internal controls of a public company.
  2. Sarbanes Oxley Section 401 Compliance on the part of public companies along with advantages and disadvantages of being compliant
  3. Relationship between internal control weaknesses versus financial reporting
  4. Responsibilities on the part of managers when in issuing financial statements with poor internal controls.
Types of services performed on the part of auditors-
1)Attestation
2)Special Purpose
3)Compilation
4)Expert witness
Consulting / Chapter 18
Chapter 19
Chapter 20 / 18-28, 18-29, and 18-30
19-31 and 19-33
20-28 and 20-29
8 / Final Exam
Final Term Paper

Grading Criteria

Grading ScaleGrading requirements

A / 100 – 93
A- / 92 – 90
B+ / 89 – 88
B / 87 – 83
B- / 82 – 80
C+ / 79 – 78
C / 77 – 73
C- / 72 – 70
F / 79 and below

Course assessment / Examinations

15% Class Participation (assessed with objective 1 through 12 above)

20% Midterm Exam will occur on TBD (assessment of objectives 1 thru 7)

20% Final Exam TBD) assessment of

objective 1, 2, 5 and 6 above)

15% Homework (assessment of objective 1, 2, and 3 above)

30% Final Paper (assessment of objective 5 and 6 above)

Library:

All resources in ArgosyUniversity’s online collection are available through the Internet. The campus librarian will provide students with links, user IDs, and passwords.

Library Resources: ArgosyUniversity’s core online collection features nearly 21,000 full-text journals and 23,000 electronic books and other content covering all academic subject areas including Business & Economics, Career & General Education, Computers, Engineering & Applied Science, Humanities, Science, Medicine & Allied Health, and Social & Behavior Sciences. Many titles are directly accessible through the Online Public Access Catalog at Detailed descriptions of online resources are located at

In addition to online resources, ArgosyUniversity’s onsite collections contain a wealth of subject-specific research materials searchable in the Online Public Access Catalog. Catalog searching is easily limited to individual campus collections. Alternatively, students can search combined collections of all Argosy University Libraries. Students are encouraged to seek research and reference assistance from campus librarians.

Information Literacy: ArgosyUniversity’s Information Literacy Tutorial was developed to teach students fundamental and transferable research skills. The tutorial consists of five modules where students learn to select sources appropriate for academic-level research, search periodical indexes and search engines, and evaluate and cite information. In the tutorial, students study concepts and practice them through interactions. At the conclusion of each module, they can test their comprehension and receive immediate feedback. Each module takes less than 20 minutes to complete. Please view the tutorial at

Academic Policies

Academic Dishonesty/Plagiarism: In an effort to foster a spirit of honesty and integrity during the learning process, ArgosyUniversity requires that the submission of all course assignments represent the original work produced by that student. All sources must be documented through normal scholarly references/citations and all work must be submitted using the Publication Manual of the American Psychological Association, 5th Edition (2001). WashingtonDC: American Psychological Association (APA) format. Please refer to Appendix A in the Publication Manual of the American Psychological Association, 5th Edition for thesis and paper format. Students are encouraged to purchase this manual (required in some courses) and become familiar with its content as well as consult the ArgosyUniversity catalog for further information regarding academic dishonesty and plagiarism.

Scholarly writing: The faculty at ArgosyUniversity is dedicated to providing a learning environment that supports scholarly and ethical writing, free from academic dishonesty and plagiarism. This includes the proper and appropriate referencing of all sources. You may be asked to submit your course assignments through “Turnitin,” ( an online resource established to help educators develop writing/research skills and detect potential cases of academic dishonesty. Turnitin compares submitted papers to billions of pages of content and provides a comparison report to your instructor. This comparison detects papers that share common information and duplicative language.

Americans with Disabilities Act Policy

It is the policy of ArgosyUniversity to make reasonable accommodations for qualified students with disabilities, in accordance with the Americans with Disabilities Act (ADA). If a student with disabilities needs accommodations, the student must notify the Director of Student Services. Procedures for documenting student disability and the development of reasonable accommodations will be provided to the student upon request.

Students will be notified by the Director of Student Services when each request for accommodation is approved or denied in writing via a designated form. To receive accommodation in class, it is the student’s responsibility to present the form (at his or her discretion) to the instructor. In an effort to protect student privacy, the Department of Student Services will not discuss the accommodation needs of any student with instructors. Faculty may not make accommodations for individuals who have not been approved in this manner.

TheArgosyUniversity Statement Regarding Diversity

ArgosyUniversity prepares students to serve populations with diverse social, ethnic, economic, and educational experiences. Both the academic and training curricula are designed to provide an environment in which students can develop the skills and attitudes essential to working with people from a wide range of backgrounds.

Acknowledgement of Syllabus Content

I have read and understand the course

syllabus for ______at Argosy University/Chicago, which is

being taught by ______. I hereby agree to the terms stated in this syllabus.

Signature / Date

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