Accounting Information Systems (AIS) Auditing

ADM 4346 A
Fall 2015

Professor
Office
Telephone
E-Mail
Office Hours

David Coderre, MBA, ACDA

DMS 0761
613 562-5800 Ext 4728
David.Coderre@telfer.uottawa.ca
Thursday 18:00-19:00
MRT 256

Class Location
Class Hours
Prerequisite(s)
Program of Study

Thursday 19:00-22:00
ADM 3349
Optional Course of Specialization in Accounting

Due Date

Weight on
Final Grade

Throughout the Term

10%

Mid-Term Examination

Saturday, October 17th

(TBT 333 from 9:00-12:00)

20%

Group Case Presentation

See Course Schedule

10%

Weeks of November 23rd and 30th

30%

December 10-22, 2015

30%

Course Deliverable
Class Participation

Group Project Presentation

and Report
Final Examination

100%

TOTAL

Page 1

Course Description
This course introduces the student to the world of information technology and accounting
information systems as it affects the internal and external auditor. With virtually every company,
even small businesses, using some kind of computerized accounting system, audits in this day
and age must adapt to this phenomena. In order for the accountant and auditor to adjust, he/she
must understand accounting information systems and thus be better equipped to modify
traditional compliance and substantive auditing techniques to cope with the automated business
processes. This course covers this topic, along with other related current topics in the industry, in
bringing auditing into the 21st century.

Course Learning Objectives / Contribution to Program Learning Goals

The objectives of this course are to:

Give students a solid foundation of the principles of information technology and

management information systems especially as it relates to accounting and
auditing.
Examine the changing role of auditing within the context of computer technology.
Examine the current literature to study the latest developments in accounting
information technology, systems and computer auditing (current issues).

As such, this course contributes to the following learning goals of the Telfer B.Com.:
LG1
LG2
LG3

Understand, Apply and Integrate Core Management Disciplines

Demonstrate Critical Thinking and Decision Making Skills
Demonstrate Leadership, Interpersonal and Communications Skills

Methods Used to Evaluate Student Performance

1. Homework Questions:
Generally, one question per chapter will be assigned in order to give you some practice in
applying the concepts learned in the chapter and to give you an opportunity to develop your
professional judgment. You are required to complete the questions assigned for each chapter
after the chapter has been covered in class. Homework questions will be counted as part of
the class participation mark and must be submitted before the start of class on the date they
are due. The solutions to the questions will be discussed in the following class. All question
numbers refer to the Core Concepts of Accounting Information Systems text.

Page 2

2. Class Participation (10%)

The success of the course for both students and professor depends on active thoughtful
participation by the members of the class during lectures, regarding assigned homework and
during case discussions. As a result, it is imperative that students do the required readings
and assigned homework in advance of each class. Attendance is, of course, an integral part of
class participation and according to school policy is mandatory (anyone found missing class
will receive a mark of zero for class participation). The mark each student receives will
reflect the quantity and quality of that students contribution to the course. Up to 10% of the
final mark will be awarded for exemplary class participation. Appendix C provides a format
for you to have some input into your class participation grade. The completed Appendix C is
due in the last class of the term.
3. Mid-Term Examination (20%)
The mid-term examination will be held on Saturday, October 17th (TBD from 9:00-12:00)
and will be worth 20% your final mark. The mid-term exam will have 3 parts. The first part
will consist of multiple choice questions worth 40% of the mid-term. The second part will
consist of short answer questions worth 20%. The third and final part will consist of long
answer question(s) worth 40%. The examination will last 3 hours and will be based on the
text, assigned readings and class lectures.
4. Group Case (10%)
There will be a total of ten (10) Group Cases to be assigned from the text Auditing Cases
An Interactive Learning Approach. Each Group Case will be done by a team of 5-6 students
(depending on the course enrollment). Students are expected to build their team within the
first two weeks of class and choose a team representative. The team representative will email
me the name of his/her team members by no later than the start of class of week 3. The
Group Cases will be assigned during the class of week 3 and presentations will begin week 6
(see Course Schedule). The sooner you build the team, the better prepared you will be in case
you are assigned the first case due week 6. Therefore, you are encouraged to build your team
as soon as possible. Anyone not belonging to a group will be assigned a group by me.
The groups will make a 30 minute presentation in class. In addition to presenting a brief
overview of the facts of the case, a key responsibility of the presenting group is to
generate class discussion of the case. This discussion should focus on the main issues
arising in the case and should be based primarily on the questions provided in the
casebook for each case. The grading of the presentations will focus on identifying the key
issues, critical analysis, and conclusions or suggestions to improve the situations in the
future (please refer to Appendix B for a detailed marking key). The group case
presentation will be worth 10% of your final mark.

Page 3

5. Group Project (30%)

The same members of the Group Case Presentation will be the members of the group for
the Group Project. Groups should choose a topic on AIS Auditing. The topic is to be
approved by the Professor by week 4. Students are required to research and prepare a
report of not more than 20 pages, double-spaced due the last week at the beginning of
class. All groups will be making a 15-20 minute presentation of the group project during
the last class(es). The presentation will be worth approximately 33% (one-third) and the
written report will be worth approximately 67% (two-thirds) of the group project or 10%
and 20% respectively of the final mark. Suggestions for topics include but are not limited
to:

Computer Security
Disaster Recovery Plans
E-Crime
Computer Fraud
Web Trust
SysTrust
EDI
Artificial Intelligence and Expert Systems
Cloud computing
Enterprise resource planning (ERP) systems
Auditing the Internet
Continuous Auditing
XBRL
etc

A more detailed outline of the requirements of the Group Project will be presented
during class.
6. Final Examination (30%)
The final examination will consist of a 3 hour comprehensive exam covering the material
from the whole course. It will be held during the regularly scheduled examination period.
Please note that it is not possible to submit extra course work in order to improve your
mark.

Page 4

Textbook/Course Package
REQUIRED TEXT AND HANDBOOK
1. Core Concepts of Accounting Information Systems, Canadian Edition (2014), John
Wiley & Sons, Canada Ltd, by Mark G. Simkin, Jacob M. Rose, Carolyn S. Norman,
and Scott Paquette - ISBN # 978-1-118-73810-8.
2. Auditing Cases An Interactive Learning Approach, 6th Edition (2015), Pearson
Prentice Hall, by Mark S. Beasley, Frank Buckless, Steven Glover and Douglas
Prawitt ISBN # 978-0-13-385210-3.
3. CPA Canada Handbook. Available :
a) through the University's on campus labs at http://edu.knotia.ca
b) through the Library website, under Databases, under CPA Standards and
Guidance Collection.
4. ISACA COBIT Student Book which will be posted on Blackboard Learn.
5. Various articles on Auditing AIS from CPA Magazine, etc which will be
posted on Blackboard Learn.

Other Information
COURSE APPROACH
The approach of this course involves cooperative learning based on cases, readings, lectures,
and discussions. Class participation is a must. Attendance may be taken during class.
PROFESSIONAL DEPORTMENT
Since all students are aspiring to become accountants (chartered, certified and management), it is
expected that each students behaviour will meet professional standards at all times including the
highest standards of ethical behaviour. At a minimum, this requires students to avoid all types of
academic dishonesty. Please see attachments at the end of the course outline regarding academic
integrity and plagiarism. In addition, 10% of your participation marks will be deducted for
each instance of unprofessional behaviour such as talking in class, or failing to contribute
to your group projects.

Page 5

Course Schedule
Wk Week
of
1
Sept.
7th

Sept.
14th

Sept.
21st

Sept.
28th

Oct.
5th

Assigned Text Readings

Chapter 1 - Accounting
Information Systems and the
Accountant
Chapter 2 Information
Technology and Accounting
Information Systems
Chapter 3 Data Modelling
Chapter 4 Organizing and
Manipulating the Data in
Databases
Chapter 5 Data Forms and
Reports
Chapter 6 Documenting
Accounting Information
Systems
Chapter 7 Accounting
Information Systems and
Business Processes: Part 1
Chapter 9 Introduction to
Internal Control Systems

Homework due/
Important Dates

Presentations
Due

Homework Tim
Horton exercise slides
Homework
Case 2-26
pp. 70-71

Groups Due
Homework
Exercise 5-1 (on
slide)

Cases
Assigned to
Groups

Group Project
Topics Due
Homework
Problem 6-12
p. 201, Case 6-21
p. 205 & Problem
7-16 pp. 240-241
Chapter 10 Computer
Homework
Controls for Organizations
Case 9-19 p. 309
and Accounting Information
and Case 9-20
Systems
pp. 309-310
Review for Mid-term Exam

Oct.
12th

Chapter 11 Computer
Crime, Fraud, Ethics and
Privacy

Page 6

Homework
Case 1 (2.2
Case 10-21 pp. 343Apple Inc)
344 and Fraud Case Case 2 (4.5
Xerox Corp)

Oct.
17th

Mid-Term Exam
Chapters 1- 10

Oct.
19th

Chapter 11 Computer
Crime, Fraud, Ethics and
Privacy

Oct.
26th
Nov.
2nd

Study Break No Class

Nov.
9th

Computerized Auditing
Using ACL)

Case 7 (4.2
Comptronix
Corp)
Case 8 (5.4 St.
James Clothiers)

Chapter 13 Developing &

Implementing Effective AIS
Chapter 14 Accounting on
the Internet
Chapter 15 Accounting
and Enterprise Software

Case 9 (9.2
Henrico Retail)
Case 10 (5.5
Collins Harp)

10 Nov.
16th

TBD

Chapter 12 Information
Technology Auditing

9:00-12:00
Case 3 (5.6
Sarbox Scooter)
Case 4 (2.1
Your1040
Return)

Review of midterm

Case 5 (6.1 Harley

Davidson)
Case 6 (6.2
Jacksonville
Jaguars)

Review for Final Exam

11 Nov.
23th

12 Nov.
30th

IT Audit, Security and

Governance (visit by
ISACA)

Group Projects
Due

Group Presentations (4)

Group presentations

Group Presentations (6)

Group presentations

Page 7

Group Evaluations
All members of a team are equally responsible for the work submitted. However, each team
member will have the opportunity to evaluate the performance of his/her team-mates. This will
be done by filling in a confidential evaluation form (see Appendix A). Each student must submit
to me the Peer Evaluation Form in a sealed envelope at the beginning of the class their Group
Case Presentation is due and at the beginning of the class the Group Project is due. The mark
assigned to the team for any presentations and written work will be proportionally scaled based
on the individuals peer evaluation to obtain the individuals mark. In an ideal situation, your
individual mark will be the same as your team mark (no one can get higher than the team mark).
Otherwise, it is scaled downwards based upon the Peer Evaluation. For example, If your team
received the mark M for the team work, and you receive a Peer Evaluation of P1, P2, P3 and P4
from your team members, your individual mark would be M*(P1+P2+P3+P4)/4. Submission of
a Peer Evaluation is mandatory. Failure to submit your Peer Evaluation on time will result
in a mark of zero (0%) for all of your team. See Appendix A at the end of the Course Outline
for a copy of the Peer Evaluation Form.

Page 8

Appendix A
ADM 4346A AIS Auditing
Fall 2015
Peer Evaluations
All members of a team are equally responsible for the work submitted. However, each team
member will have the opportunity to evaluate the performance of his/her team-mates. This will
be done by filling in a confidential evaluation form. Each student must submit to me the Peer
Evaluation Form in a sealed envelope at the beginning of the class their Group Case Presentation
is due and at the beginning of the class the Group Project is due. The mark assigned to the team
for any presentations and written work will be proportionally scaled based on the individuals
peer evaluation to obtain the individuals mark. In an ideal situation, your individual mark will
be the same as your team mark (no one can get higher than the team mark). Otherwise, it is
scaled downwards based upon the Peer Evaluation. For example, if your team received the mark
M for the team work, and you receive a Peer Evaluation of P1, P2, P3 and P4 from your team
members, your individual mark would be M*(P1+P2+P3+P4)/4. Submission of a Peer
Evaluation is mandatory. Failure to submit your Peer Evaluation on time will result in a
mark of zero (0%) for all of your team.
The objective of peer evaluations is to ensure that your concerns/comments regarding the
contributions of your team members are heard. In a team in harmony, with workload fairly
distributed among all team members, each member will receive 100% from his/her peers.
Some of the factors you can consider in evaluating your team members are:
Presence and punctuality during group meetings.
Accepting a fair share of the team workload and actively participating.
Preparation (readings, documentation, research, solutions, report writing and
presentation).
The team member exceeded/met/did not meet your expectations.
Would you like to work with the team member again?

Instruction:
Fill out the form on the next page, date it, sign it, and submit it to me in person in a sealed
envelope at the beginning of the class that it is due.

Note on Confidentiality
The information on this form is protected and will remain confidential after it is submitted. The
form will be destroyed after the official marks are finalized and announced by the University
authorities.

Page 9

Peer Evaluation Form

ADM 4346A AIS Auditing
Fall 2015

Note on Confidentiality
The information on this form is protected and will remain confidential after it is submitted. The
form will be destroyed after the official marks are finalized and announced by the University
authorities.
My Name:

My Student ID #:

My Team # (1-10):

Names of my Team-Mates
1.
2.
3.
4.
5.
6.
7.

My Evaluation of my Team-Mate (0-100%)

Comments, Justifications, Concerns (if any):

Date: ..

Signature: .

Page 10

Appendix B
ADM 4346A AIS Auditing
Fall 2015
Case Presentation Marking Key
Factor

Grade

Case Overview

Total

/10

appropriate use of
overheads/slides/board
clarity
quality of visual aids
grammar & spelling

Class involvement

/20

clarity of ideas
use of examples when
appropriate
speaking style
time management
able to engage audience
professionalism
creativity

Visual aids

/20

analysis vs. mere description

critical and knowledgeable
interpretations
Canadianization of standards
connection to course
conclusion

Presentation/Style

/20

completeness
focus on key issues
demonstrated understanding

Analysis/ Interpretation/
Conclusions

Comments

/30

encourage active participation

by class
pose questions to class
elicit input from the class
incorporate class comments in
subsequent discussions
manage class discussions

/100

Page 11

Appendix C

ADM 4346A AIS Auditing

Fall 2015
Individual Assessment of Contribution to the Classroom Environment
DUE IN CLASS Thursday, November 26th
Name:_____________________________
Week Attendance Participation
during own Participation
small group
in large
discussions
group class
or meetings
discussion
1

Comments

2
3
4
5
6
7
8
9
10
11
12

Identify strengths in terms of your class participation (be as specific as possible):

Identify areas for improvement (be as specific as possible):

Provide an honest assessment of your overall contribution to the classroom

environment:
/10

Page 12

Beware of Academic Fraud

Academic fraud is an act committed by a student to distort the marking of assignments, tests,
examinations and other forms of academic evaluation. Academic fraud is neither accepted nor
tolerated by the University. Anyone found guilty of academic fraud is liable to severe academic
sanctions.
Here are a few examples of academic fraud:

engaging in any form of plagiarism or cheating;

presenting falsified research data;

handing in an assignment that was not authored, in whole or in part, by the student;

submitting the same assignment in more than one course, without the written consent of
the professors concerned

In recent years, the development of the Internet has made it much easier to identify academic
plagiarism. The tools available to your professors allow them to trace the exact origin of a text
on the Web, using just a few words.
In cases where students are unsure whether they are at fault, it is their responsibility to consult
the Universitys Web site at the following address, where you will find resources, tips and tools
for writing papers and assignments:
Academic Integrity Webpage
Persons who have committed or attempted to commit (or have been accomplices to) academic
fraud will be penalized. Here are some examples of the academic sanctions, which can be
imposed:

a grade of F for the assignment or course in question;

an additional program requirement of between three and thirty credits;

suspension or expulsion from the School.

Please be advised that professors have been formally advised to report every suspected case of
academic fraud. In most cases of a first offence of academic fraud, the sanction applied to
students who have been found guilty is an F for the course with an additional three credits
added to their program requirements. Repeat offenders are normally expulsed from the School of
Management.
Finally, the Telfer School of Management asks that students sign and submit with their
deliverables the Personal Ethics Agreement form. Two versions of this form exist: one for
individual assignments, and one for group submissions. Assignments will not be accepted or
marked if this form is not submitted and signed by all authors of the work. We hope that by
making this personal commitment, all students will understand the importance the School places
on maintaining the highest standards of academic integrity.

Page 13

Personal Ethics Statement Concerning Telfer School

Assignments
Group Assignment:
By signing this Statement, I am attesting to the fact that I have reviewed not only my own work,
but the work of my colleagues, in its entirety.
I attest to the fact that my own work in this project meets all of the rules of quotation and
referencing in use at the Telfer School of Management at the University of Ottawa, as well as
adheres to the fraud policies as outlined in the Academic Regulations in the Universitys
Undergraduate Studies Calendar. Academic Fraud Webpage
To the best of my knowledge, I also believe that each of my group colleagues has also met the
rules of quotation and referencing aforementioned in this Statement.
I understand that if my group assignment is submitted without a signed copy of this Personal
Ethics Statement from each group member, it will be interpreted by the Telfer School that the
missing student(s) signature is confirmation of non-participation of the aforementioned
student(s) in the required work.
______________________________

__________________________

Signature

Date

______________________________

__________________________

Last Name (print), First Name (print)

Student Number

______________________________

__________________________

Signature

Date

______________________________

__________________________

Last Name (print), First Name (print)

Student Number

______________________________

__________________________

Signature

Date

______________________________

__________________________

Last Name (print), First Name (print)

Student Number

______________________________

__________________________

Signature

Date

______________________________

__________________________

Last Name (print), First Name (print)

Student Number

______________________________

__________________________

Signature

Date

______________________________

__________________________

Last Name (print), First Name (print)

Student Number

Page 14

Personal Ethics Statement

Individual Assignment:
By signing this Statement, I am attesting to the fact that I have reviewed the entirety of my
attached work and that I have applied all the appropriate rules of quotation and referencing in use
at the Telfer School of Management at the University of Ottawa, as well as adhered to the fraud
policies outlined in the Academic Regulations in the Universitys Undergraduate Studies
Calendar. Academic Fraud Webpage

______________________________

__________________________

Signature

Date

______________________________

__________________________

Last Name (print), First Name (print)

Student Number

Page 15

Access Service for students who need adaptive measures

Students who have a disability or functional limitation and who need adaptive measures (changes
to the physical setting, arrangements for exams, learning strategies, etc.) to progress or
participate fully in university life should contact Access Service right away:
By visiting our office on the third floor of the Desmarais Building, Room 3172
By filling out the online registration form
By calling us phone at 613-562-5976
Access Service designs services and implements measures to break down barriers to learning for
students with physical or mental health problems, visual impairments or blindness, hearing
impairments or deafness, permanent or temporary disabilities, or learning disabilities.

Page 16