San Jose State University
College of Business
Department of Accounting and Finance
Operational Auditing--BA129B
Spring 2012
(updated 5/2/12)-notes updated...note that the final is an in-class final at 6pm on 5/17
 

Section: Th. 6pm - 8:45pm; BC 326                            
Office: BT 852
Office Hrs.:T,TH 4:30-5:30 pm; 8:45-9:45 pm or by appointment
Phone: 408.924.3468
Fax: 408.924.3463
E-mail: wfocpa@aol.com

COURSE DESCRIPTION:
I believe this course will enhance your career through an understanding of operational auditing and by creating a network of professional internal auditors. The purpose of this course is to introduce students to the fundamentals of operational auditing concepts. While this course follows the general flow of the textbook, individual exercises, team cases, guest speakers and a semester group project will provide  you with a first-hand experience of the operational auditing process.

COURSE MATERIAL:
Required:     Internal Auditing: Assurance & Consulting Services, 2nd Ed., Reding, et. al. (Institute of Internal Auditors, 2009). ISBN                      978-0-89413-643-6
               O'Brien 129B Course Reader, (Available at Copy Craft, 341 Lafayette Street, #103, Santa Clara; Tel: 247-4692). Call prior to picking                                      up.Please note that the reader will not be available until after the first class session.

HOMEWORK ASSIGNMENT:
Before you come to each class, read the material as outlined in the syllabus. Homework problems are to be completed before each class. Students will be expected to present solutions to selected homework assignments in class. While homework will not be routinely collected, it is absolutely necessary that you do your homework. Each chapter uses concepts and techniques learned in previous chapters. If you wish to understand the material better, you cannot afford to ignore the homework.

EXAMINATIONS:
There will be two (2) examinations and/or quizzes including a semi-comprehensive final examination. Generally speaking, there will be NO make-up examinations. In the event of a rare emergency on the day of the examination, you should notify me as soon as possible. Use all available methods of communication. The final examination and presentation must be completed as scheduled. On each examination, an adjustment to each student’s raw score will be given based upon the average score of the top 10% of the class.

CLASS SESSION:
In class, we stress analysis and application of the concepts that you are expected to learn on your own. While we follow the general flow of the textbooks, we do not simply repeat the text. We emphasize important points, add new information, review homework problems and apply the concepts to real-world situations. Ample opportunities will be given to you in class for asking questions and answering questions raised by others. I expect each of you to be prepared for class.

GRADING AND GRADE CATEGORIES:
Grading will be based on the following scores:                       The following grading distribution
                                                                                                will be approximated:
            Exams (2)-150 points each               300                               A range 40%          90%-100%
            SJSU Case                                     300                               B range 40%          80%-89%
            Participation                                    50                                C range 15%          70%-79%
                                                                                                       D range 5%            60%-69%
            Total points                                    650                               F                            Below 60%

SJSU OPERATIONS CASE:
An on-going case featuring the operations of a San Jose State University department will be introduced at the first class meeting.   Three milestone reports and related presentations will be delivered during the course of the semester.  The reports should be in professional business format.   The presentations should be concise yet formal.  Detailed instructions are available on the course website.  The grade for this case will be based upon content, presentation and workpaper format. This grade will be weighted based upon participation and the evaluation of your teammates.

Good presentation skills are essential for success as a business professional. Each team will be required to give a 10 minute presentation of each phase of this project. The presentations will be graded by your fellow students and me. As a result, you should emphasize audience attentiveness and interest.

Presentations are scheduled for:
-Mar. 1, 2012
-Apr. 12, 2012
-May. 10, 2012

Here are some workpaper samples which I encourage you to use and/or improve:
-Workpaper index
-Audit program
-Findings workpaper
-Basic workpaper
-Flowchart

Any violation of academic integrity in any of the exams or assignments (including unauthorized use of internet resources) will lead to a course grade of "F".

COURSE OUTLINE AND ASSIGNMENTS (other problems will be periodically assigned):