KOC UNIVERSITY

College of Administrative Sciences and Economics

ACCT. 403—Auditing
Spring 2024

Instructor: D. Levent Özakhun Day/Time: TBA

Office: CAS 142 Room: TBA
E-mail: Lozakhun@ku.edu.tr Office Hours: TBA

Course Objectives

The basic objective of this course is to teach students what is audit, who does it, why it is done, how
it is done, and what happens if it is not done properly. The primary emphasis in this course is on the
auditor’s decision-making process in a financial statement audit, as well as an integrated audit of
both financial statements and internal control over financial reporting required for accelerated filer
public companies. Through this course it is aimed to teach students the most fundamental concepts
in auditing concern determining the nature and amount of evidence the auditor should gather after
considering the unique circumstances of each engagement. If you understand the objectives to be
accomplished in a given audit area, the risks related to the engagement, and the decisions to be
made, you should be able to determine the appropriate evidence to gather and how to evaluate the
evidence obtained.

Important Policy Issues

Ethics and Professionalism

Independent auditors are responsible for issuance of audit reports based on their audits on the
financial statements and underlying reporting systems and various processes. High standards of
ethics and professionalism are an integral part of the job. I expect that you will at all times exhibit
high standards of professionalism in this course. In the context of this course, professionalism
consists of:

-class attendance,
-being on time for class,
-class participation,
-not talking out of turn,
-being respectful to others,
-your overall behavior as a future business professional.

1
You are expected to attend class; scheduling other appointments during class sessions is
unacceptable. Please arrange your personal schedules so that late arrivals and early departures are
avoided. Chronic lateness, talking in-class, and cell phone calls that distract others are unacceptable.
Students are not permitted to use laptops, ipads, smart-phones, dumb-phones, and other devices
with screens in class. Repeated walking in and out of class is distracting to your classmates and me
and such behavior will not be tolerated.

Academic Integrity

I fully support KOÇ University's policy on Academic Honesty, which indicates that academic
dishonesty is unacceptable and will not be tolerated. Cheating, forgery, plagiarism and collusion in
dishonest acts undermine the University's educational mission and the students' personal and
intellectual growth. KOÇ students are expected to bear individual responsibility for their work and
to uphold the ideal of academic integrity. Any student who attempts to compromise or devalue the
academic process will be sanctioned. Additional information can be found at the link for “ student
code of conduct” through:

http://vpaa.ku.edu.tr/academic/student-code-of-conduct

You must honor KOÇ University's standards regarding integrity, honesty, and cheating at all times;
sharing of information during exams in any form is strictly forbidden. Please note that a report of
suspected academic dishonesty will always be sent to the Dean of Students.

Required Materials and Content

Auditing and Assurance Services – An Integrated Approach, 17th Edition, Alvin A. Arens, Randal J.
Elder, Mark S. Beasley, “MyAccountingLab”version

How to get registered to “MyAccountingLab” website for this course?

You must use the registration code in a sealed envelope that comes with your textbook and the
course ID to complete your registration. You must include your e-mail address and your name
using only the English characters as part of your registration to “MyAccountingLab”. Course ID
and steps to be followed for registration are included in the attached Student Registration Handout
(the PDF doc.).

MyAccountingLab Course ID: ozakhunXXXXX (to be determined later)

How to Get Help with MyAccountingLab

If you have any technical difficulties with Pearson MyLab, you can reach Pearson Turkey support
team at http://yardim.pearson.com.tr/en. Live chat service is also available in working hours.

2
Course Content

The textbook consists of 25 chapters in 6 parts.

1) The Profession of Auditing (chapters 1-5)

2) The Process of Auditing (chapters 6-13)
3) Application of the Audit Process to the Sales and Collection Cycle (chapters 13-17)
4) Application of the Audit Process to Other Cycles (chapter 18-23)
5) Completing the Audit (Chapter 24)
6) Professional Responsibilities and Other Services (Chapters 25 & 26)

Necessary emphasis will put on each part to make sure that the course objectives are covered.

Course Format and Assessment

Course Format

Classes are divided between lecture-discussion sessions and active problem solving. You will
benefit from this course in proportion to the effort you put in and may get frustrated unless you
come to class prepared. Preparing for a class includes reading and thinking about the assigned
material and working on the assigned exercises. Homework problems will be assigned using the on-
line homework system, MyAccountingLab. These on-line homework assignments will be graded
and form part of your course grade. Be prepared to answer questions and contribute to the solutions
to these exercises and problems in class. Working with exercises and problems is essential.
Understanding the solution presented in class for a particular problem is only the first step; you
must be able to solve similar problems yourself.

Grading Scheme1

1. 5 online homework/quizzes will be given throughout the semester. Those will have a weight
of 10% in determination of the final grade. (If no quizzes are offered throughout the semester
then this 10% weight evenly allocated onto Mid-term and Final exam weights.)
2. Mid-term exam will have weight of 35% in determination of the final grade.
3. Final examination has a weight of 45% in determination of the final grade.
4. Participation to in-class problem solving, quality of contribution to class
discussions and regular attendance will have a weight of 10% in determination of the final
grade. Performance in this regard will be evaluated by the lecturer.

There are no extra credit options available for this course.

Re-Grading Policy

If you have questions regarding the grading of an exam (or a quiz), please state the question in
writing within one week from the time you receive your exam grade. I will re-grade the entire
exam. After re-grading an exam, the result may change: if a mistake was made in the original
grading, then the grade may increase or decrease after re-grading.

1
This grading policy and scheme may be subject to review during the term. If I decide to change the grading
policy and scheme in any way during the term, you will be informed. At that point an updated course
outline will be sent. It is your responsibility to keep up class announcements for any updates.

3
Exam and Grading Policies

1) If you miss an exam without an excuse approved by the University, this will result in
you getting zero for that exam. No make-up exam will be given unless your excuse is
approved by the University.

2) A cumulative make-up exam (covering all chapters and all topics completed) may be
given to those students who have an excuse approved by the University after final exam
and on the scheduled date in our academic calendar for make-ups at the end of final
exams schedule. Result of that make up exam will be used to replace either your
missing mid-term or the final exam, but under no circumstances for both. In other
words, if you miss both mid-term and the final exam (even if you have an approved
excuse), you will be given only one make up exam and one grade, hence the other
missing exam will be zero.

3) You are not going to be given a make up exam for mid-term exam, if you also missed
the final exam and apply for the remedial exam.

4) Excuses, in the form of health reports covering one or two days, will be subject to
further investigation, even if those are approved. If necessary, those will be forwarded
to faculty board for further evaluation. Based on the final decision of the board, you
may or may not be given a make-up exam.

5) The exam schedule will be announced later during the semester by the registrar office.
Please follow those announcements for mid-term, final, make up, remedial and amnesty
exam dates.

6) All materials covered in class and/or included in the assigned chapters are “fair game”
for the exams.

7) The minimum requirement for the final exam is 50 pts (out of 100 pts).

8) Please also refer to item 4 under “Homework Submission Policies” for online exams,
if any

9) Letter grades will be assigned according to the following guidelines:

A+ above 100
A 100 – 93
A- 88 – 92
B+ 83 – 87
B 78 – 82
B- 73 – 77
C+ 68 – 72
C 63 – 67
C- 58 – 62
D+ 54 – 57
D 50 – 53
F 0 – 49

4
Policies Related to Class Participation / Professionalism and Other Important Matters

1) Attendance is required in this course. Students who fail to attend 1/3 (or 33%) of the
classes held will get an automatic F. Thus, minimum attendance requirement is 2/3 (or
66%). Excused absences due to any reasons, health reports, except for long lasting ones
due to a serious health problem, are not taken into consideration while calculating your
minimum attendance requirement, even if those are approved. That is why minimum
attendance requirement is 66% instead of 100%.

2) It is your responsibility to control and keep up your attendance rate. If you get
registered to this course during the add/drop period, any previous sessions you have
missed are totally your responsibility and you will be marked absent during that period.

3) Attendance is going to be taken during each session. To complete your sign off, you
should be present in the classroom on time. Signing off the attendance at the last
moment at the instructor desk is not allowed and should not be requested.

4) Signing off the attendance data on behalf of somebody else is a serious ethical problem,
no matter what the reason behind that. In such a case, both the students who sign off on
behalf of another student and the student who is signed off by somebody else are going
to face with serious consequences. If attendance is taken via BlackBoard, without
physically be in the classroom signing off the attendance from an outside location has
the same consequences, as well.

5) If you participate this course online anytime, it is not going to be included in your
attendance data. Letting you participate to courses online will just allow you to keep up
what is covered in the class during that session. However, if you have an approval from
University Council to follow courses online or if you are an international student follow
this course online from your home country (i.e. students from UNIC Partners), you are
expected to communicate such detail to your instructor at the beginning of the semester.

6) Attendance data is going to be finalized by the instructor at the end of the semester.
Hence there will be no interim reporting to students throughout the semester. As has
been indicated in item 1 above, it is your responsibility to keep up your attendance data
throughout the semester.

7) Class participation / professionalism grade component is divided into two components:

“attendance” and “participation and professionalism”. If you have fulfilled the
minimum attendance requirement, as indicated in item 1 above, you are going to get 3
points (or 3%) out of this component. Otherwise your grade from this component will
be zero. Therefore, there is no in between grading available for this component. Also, if
you involved in problematic situations as has been explained item 4 above, your grade
from this component will be zero regardless of your attendance percentage. The other 7
points (or 7%) will be assessed by instructor at the end of the semester based on your
participation to class discussions, your grades from the exams, your performance in
homework assignments, your timely attendance to scheduled exams and your overall
professionalism in the classroom environment. Merely attending the classes does not
guarantee you any points; you must actively participate and conduct yourself as a
professional to earn this component of the grade. Your grade from this component is
not going to be separately announced.

5
 8) Professionalism is defined on the first and second pages of this syllabus. In the context
of this class, professionalism requires that you arrive in classroom (together with the
class materials that you will be instructed to bring) no later than the exact start of the
class hour on every class day. Chronic lateness will cause your professionalism score to
go down dramatically.

9) If you miss a class, it is entirely your responsibility to determine what you have missed
including any administrative announcements.

Homework/Quiz Policies
1) On-line homework assignments/in class quizzes which will form part of your course
grade will be given throughout the semester.

2) On-line homework assignments will be available through MyAccountingLab and be

announced in the classroom. No separate e-mail communication will be sent regarding
the start and end date of the homework availability. It is your responsibility to check
MyAccountingLab website regularly and follow in-class announcements.

3) No makeup homework assignments are offered for the missed homework deadlines. If
you miss the deadline for a homework submission, then your grade for that homework
assignment is zero.

4) On-line homework assignments will be automatically graded by MyAccountingLab

Software. It is your responsibility to successfully submit your homework online. If you
have questions regarding the grading of homework through MyAccountingLab, please
state the question in writing within one week from the time the homework is due.
Questions regarding the grading of homework through MyAccountingLab that are
submitted beyond one week from the time the homework is due will NOT be answered.
Automatic grade deductions by MyAccountingLab due to not following the specific
instructions while entering or submitting your answers are not included in this context
(i.e. entering amounts as 10.000 instead of 10000 or 10,000 or not using (-) sign or
parenthesis when you specifically instructed to do so)

5) Having your homework done by someone else is cheating, and any cheating case will
be dealt by KU Dean of CASE. It is against international law to share your
MyAccountingLab password with someone else, and you may end up dealing with
international courts (in addition to KU Dean of CASE) if you do so. At the end of the
semester before assigning your letter grade, your instructor reserves the right to make
downward adjustments to your overall homework score if the total of your exam scores
compared to the total of your homework scores is too low based on his judgment.
6) The dates of in-class quizzes, if any, will not be announced in advance.

7) An in-class quiz, if any, will be given more weight than an on-line homework when
determining your end-of-the semester homework/quiz point total.

8) No make-up quizzes are offered for the missed quizzes. If you are absent when a quiz is
given in class, then your grade for that quiz is zero.

6
Other Important Notes
This is a very demanding course. To succeed in this course, you must:

1) Read the chapters in the book. This is critical; there are a lot of concepts covered in
this course that you can only really grasp if you read the chapters of the book we cover.
Just doing the homework is not enough.

2) Work the assigned homework problems on your own.

3) If possible, work additional homework problems -- but only the ones that cover the
same topics as the assigned problems.

4) Keep up with the course. This is a comprehensive course, and the material builds upon
itself. In addition, much of the material is highly detailed. As a result, it is highly
difficult to cram this material at the end. You should expect to study a minimum of 6
hours (outside of class) per week to pass the course.