Alpha University College

Faculty of Business & Economics

Department of Accounting & Finance
Course Title: Principles of Auditing II
Course Number: ACFN 342
Credit Hour: 3
Academic Year: 2011/2012
Semester: i
Course Description
The course builds on the knowledge gained in Auditing I and to that end covers the topics dealt
with in that course as well as introducing new concepts; Impact of changing technology on the
auditing profession, Information technology controls, Information security, Effect of advanced
systems on the audit approach, computer assisted audit techniques, audit of balances involving
cost capitalization, audit of balances involving revenue recognition, audit practice management,
prospectus profit forecasts, investigations, interpretation and application of the companies Act.
Course Objective:
After Completion of the Course, Students are expected to know audit objectives and procedures
for different elements of the financial statements. Students are also expected to know features of
Auditing computerized accounting information system and control aspects of it.

Course Outline

Contents
Chapter 1 Testing and Audit Sampling

Chapter 2 Auditing Objectives and Procedures for cash & Marketable security

Chapter 3 Auditing Objectives and Procedures for Accounts Receivable, Notes Receivable

and Sales Transactions

Chapter 4 Auditing Objectives and Procedures for Inventories and Cost of Goods Sold

Chapter 5 Auditing Objectives and Procedures for Property, Plant and Equipment including

Depreciation and Depletion

Chapter 6 Auditing Objectives and Procedures for Accounts Payable and Other Liabilities

1
Chapter 7 Auditing Objectives and Procedures for Debt and Equity Capital

Chapter 8 Further Verification of Revenue and Expense

Chapter 9 Auditing Computerized Accounting Information System

9.1 EDP Auditing

9.2 EDP Audit Tools and Techniques

9.3 Types of EDP Auditing

9.4 Internal Control over EDP Activities

9.5 Impact of EDP on the Audit Trail

TEXT BOOK
Meig Whithington, Principles of Auditing and Tests on Computerized Auditing
Evaluation:-
Tests, Assignments, Projects:- 40%
Final Exam: - 60%
Total 100%
Reference Books and Readings Materials
1. Walter B. Meigs & etal, Principles of Auditing, Ninth Edition 1989
2. Stettler, Principles of Auditing
3. Johannes Kinfu, Auditing, Introduction to principles and practices , FBE,
AAU.
4. Ray Whittington & etal, Principles of Auditing, tenth edition 1992
5. D.R. Carmichael & etal, Auditing Concepts and Methods, 5th ed. 1989