This course outline (AY2012 Term 1) is provided to you as a sample course outline.

There may be minor changes in the course outline for the coming term.

Instructor: Joanne TAY FOO See Liang Date: 16/10/2012

ACCT402 Governance & Risk Management

Course Outline 2012/2013 Term 1

A. Instructor and Contact Information Dr Joanne Tay Associate Professor of Accounting (Education) School of Accountancy(SOA) Singapore Management University Singapore 178900 Tel: (65) 6808-5175 Fax: (65) 6828-0600 Email: joannetay@smu.edu.sg

Consultation: Phone and email queries are welcome at any time. Please make an appointment for office consultation.

B. Course Description Recurring scandals have highlighted the need for improved standards of governance; continuing volatility has demonstrated the need for more effective risk management systems to deliver sustainable performance and satisfactory conformance. The market continues to demand assurance from organisations in both these areas. Governance & Risk Management (GRM)

explores the drive for greater corporate transparency, accountability and oversight to create, sustain, protect and assure corporate value from multifarious external and internal risks. It examines the concepts, frameworks, principles and practices that must be recognized and implemented to ensure the resilience of organizations. (Note course prerequisites: ACCT203/221 Accounting Information Systems)

C. Learning Goals, Course Objectives and Skill Developments GRM has two related objectives: to equip students with a sound foundation of GRM concepts, frameworks, principles and practices; and to develop their technical skills and professional attitudes. The course explores the governance objectives and framework that organizations pursue and implement; the strategic, operational, compliance and reporting risks that threaten attainment of objectives; different methods and approaches that are used to identify, understand and manage these risks; and ways of providing internal and external assurance that contribute to an organization culture of doing the right thing, at the right time, in the right way. On completing this course, students are expected to be able to: Recognise, explain and interpret the concepts, framework and principles that underlie GRM guidelines and practices; Identify and analyse the external and internal governance environments of real-world organizations; Examine and critique real-world risk management scenarios; Develop practicable solutions to real-world problems that integrate governance, risk management and assurance.

The GRM course pedagogy and assessments are designed to enable students to be actively engaged in all aspects of their learning. Assessments, projects and class learning activities will develop their individual competencies as follows: Communication Skills: Students will develop their communication skills by actively participating in class discussions and group discussions, and writing group summaries, mid-term group project reports and final exam answers. Analytical Skills: Analytical skills will be developed through field observations, regular case discussions, the mid-term group project and the final exam. Team work: The mid-term group project, weekly group discussions and group summaries are important elements of the course that require students to work in teams as partners who share the work load. Discussion groups will be formed by Week 3, and the mid-term project group members will be randomly assigned. The BAcc qualification leads students to a professional career, and the CIRCLE values form an essential component of SMU education. The GRM professional conduct assessment is designed to motivate and reward students who behave with Commitment, Integrity, Responsibility, Collegiality, Leadership and Excellence in all aspects of this course, and conduct themselves professionally throughout. Students are expected to: prepare and be punctual for class, submit their own work promptly as required, be polite and cooperative with the instructor and one another, and persevere with a positive attitude.

D. Assessment The assessment components are described below:

c d

Class learning activities: Class participation (class & group discussion/exercise, news articles, student reflection) Professional conduct Progress assessments: Group summary Mid-term test Mid-term team project Final Examination Total

20%

15%

15% 50% 100%

(a) Class learning activities Class participation class & group discussion, news articles, student reflection (CP): 10% The seminars in weeks 2-6 and 9-12 will comprise sessions of class discussion, usually followed by group discussion and exercises. During Weeks 1 and 2, students will form groups of between 6-7 members. These groups will form the basis for the group discussion and exercise. Students are expected to contribute consistently to both types of discussion by: describing what they have learnt from readings assigned, asking questions to clarify areas of doubt, sharing current examples of issues being discussed which they have read about or observed, recommending practicable solutions and developing new ideas for practice. During the group exercises in particular, students are required to summarise their group discussion and conclusions clearly and succinctly by identifying the main points of their analysis and justifying their evaluation. In weeks 10 &11, each student is required to contribute one current news item to illustrate the topic for the week. This will enable students to appreciate different aspects of the topic studied, and internalize their learning. At the end of the seminars in weeks 3, 7 and 11, students are given the opportunity to reflect on what they have learnt. These reflections will enable them to integrate their learning from different parts of the course and identify any areas requiring clarification. Professional conduct (PC): 10% Throughout the course (weeks 2 to 15), students are expected to conduct themselves in accordance with the SMU CIRCLE values, in particular by being prepared and punctual for seminars (commitment and responsibility), prompt in work submission (integrity), cooperative and polite to instructor and fellow students (collegiality), and persevering and positive (leadership).

(b) Progress assessments Group summary (GS): 5% In weeks 4-7 and 9-11, discussion groups will be randomly assigned to prepare and submit a summary of the weeks seminar material and discussion. The summary is expected to capture the concepts, framework, principles and practices discussed in class; and the main points raised by the group discussions. Mid-term test (MT): 10% In week 7, students will take a mid-term test lasting not more than 1 hour. They will be expected to identify, explain, interpret and analyse material relating to the topics covered in weeks 1-6.

(c) Mid-term team project (MTP): 15% In week 7, students will be randomly assigned to teams of 6-7 members and issued instructions on information to collect and prepare. During the seminar time in week 9, each team will analyse

and critique the information collected to submit a short written report of its findings, evaluation and conclusion. (d) Final examination: 50% The final examination will be a case-based paper lasting 2 hours. Students will be allowed to bring in 2 A4 sides of notes and/or diagrams for reference. They are expected to recognize and explain material covered during the whole course, and apply their knowledge to distinguish and assess circumstances and formulate practicable solutions. Students are expected to clarify their understanding on the requirements and details of each of the assessment components in Seminar 1.

Policy of Academic Integrity All acts of academic dishonesty (including, but not limited to, plagiarism, cheating, fabrication, facilitation of acts of academic dishonesty by others, unauthorized possession of exam questions, or tampering with the academic work of other students) are serious offences. All work (whether oral or written) submitted for purposes of assessment must be the students own work. Penalties for violation of the policy range from zero marks for the component assessment to expulsion, depending on the nature of the offence. When in doubt, students should consult the instructor of the course. Details on the SMU Code of Academic Integrity may be accessed at http://www.smuscd.org/resources.html.

E. Textbook and References There is currently no comprehensive textbook for the GRM course. The main references are: Code of Corporate Governance (including proposed revisions), Corporate Governance Council, 2005 & 2011. Available from http://www.mas.gov.sg under News / Press releases/ 14 June 2011 Evaluating and Improving Governance in Organisations, International Good Practice Guidance, IFAC 2009 Available from http://web.ifac.org/publications/professional-accountants-in-businesscommittee/international-good-practice#evaluating-and-improving-governance-in-organizations Risk Management Principles and Guidelines, ISO/FDIS 31000 Available in the SMU Library Reserves (HD61.I58.2009). Framework for Assurance Engagements, Singapore Standard on Auditing, SSA Framework, ICPAS 2005 Available from http://www.icpas.org.sg under Technical Resources / Members Handbook / Vol 2 A significant amount of material on models for business, risk analysis and the control environment will be referenced from the following text: Auditing: Assurance & Risk, WR Knechel, SE Salterio and B Ballou, 3rd ed, Thomson/SouthWestern, 2007.

This text is used on ACCT331: Audit & Assurance Services, so students who will be doing that course may choose to purchase it now. It is also available in the SMU Library. Additional readings will be assigned as term progresses, and details of these will be included in the weekly seminar materials posted on eLearn.

Research Guide A research guide created for this course brings together various useful library and web-based resources for company and industry analysis. The guide is available at http://researchguides.smu.edu.sg/acct402 or through the Library homepage, under Research Guides.

F. LESSON PLAN The summarised lesson plan is shown on the next page. Detailed seminar schedules, including readings and questions for the group discussion/exercise, will be provided on eLearn. Note that the Lesson Plan may be subject to some amendment as the term progresses.

GRM LESSON PLAN Week 1 Topic GRM Overview: Components & Framework Governance Framework: Objectives, Concepts & Principles, Process Governance Practices Activities Course briefing Field observation Class discussion Group discussion Class discussion Group exercise Student reflection 1 Class discussion Group exercise Class discussion Group exercise Class discussion Group exercise Mid-term test Class discussion CP / PC Assessment components

CP / PC

Risk Management Process: Context, Risk Identification & Communication Risk Management Process: Risk Analysis, Evaluation & Communication Risk Management Process: Risk Treatment, Monitoring & Communication Risk Management Framework

CP / PC / GS

CP / PC / GS

CP / PC / GS

MT / CP / PC / GS

Student reflection 2 8 9 MID-TERM BREAK Integrating Governance & Risk Management Risk Management for Performance Sustainability & Business Continuity Management Risk Management for Conformance IT Governance & Fraud Team discussion & report Class discussion Group exercise News articles Class discussion Group exercise News articles Class discussion Group exercise Class discussion Exam briefing Student reflection 3 PC / MTP

10

CP / PC / GS

11

CP / PC / GS

12

Assurance Concepts, Process & Techniques GRM Review

CP / PC / GS

13

CP / PC

14 15

Revision Final exam

Prepared by: Joanne Tay, July 20, 2012

Approved by: Themin Suwardy, August 1, 2012