In the first semester, we first examine the demand for audits and other types of assurance services offered by CPAs, and examine external factors that impact the audit process. These factors include auditing standards, audit reporting requirements, professional ethics, legal liability, and regulation, including the requirements of the Sarbanes–Oxley Act.
The remainder of the course is devoted to understanding the underlying concepts and the procedures utilized in performing audits. Selected topics covered in the latter part of the course include identifying audit objectives, assessing risk and materiality, evaluating evidence, performing analytical procedures, understanding Section 404 audits of internal control and control risk, understanding the Sarbanes–Oxley Act and SAS 99 on fraud and their effects on current audit practice, and recognizing the impact of information technology on the audit process.