Course Description: This course is designed to orient the students in the application of the audit standards techniques and
procedures in the risk-based audit process in
specialized industries. Specialized industries includes government agencies (GOCC's & LGU's) , banking, insurance, real estate, not for profit entities, BPOs, broadcasting
companies, hospitals, cooperative, academe, telecommunications, and construction companies The course will cover the stages of the risk-based audit process, namely risk
assessment (preliminary engagement activities, planning the audit and performance of the risk assessment procedures) and risk response (designing and tests of controls and
substantive test of transactions in the revenue and collection cycle, expenditure cycle and financing and investing cycle. The application of audit procedures in performing
substantive tests of transactions and account balances.
Week Topic Learning Objectives Methodologies
1 General Orientation on the Course
2 Introduction in Auditing in Specialized • Identify a business in a specialized industry. Lecture Discussion
Industry • Differentiate a normal business from a specialized industry. Case Digest
Integrate various standards related in specialized industry. Recitation
Brain Storming
3 Review of Audit Engagements • Identify the major audit engagement phases. Lecture Discussion
• Articulate each of the audit engagement phases. Case Digest
• Apply various audit procedures on each audit engagement phase Recitation
Brain Storming
4 Audit of Agricultural Producers • Determine the nature and operations of an agricultural producers. Lecture Discussion
• Identify the accounting systems, internal controls and other accounting Case Digest
considerations in Agricultural Producers. Recitation
• Articulate the engagement planning considerations for an agricultural Brain Storming
producers.
• Study and evaluate the environment, including internal control, of an
agricultural producer.
• Analyze the different specific accounting principles and auditing
procedures in Agricultural Producers.
5 Audit of Agricultural Cooperatives • Identify the types of cooperative organizations. Lecture Discussion
• Identify the specific auditing considerations of an agricultural cooperative Case Digest
• Determine the specific auditing procedures for agricultural cooperative Recitation
• Identify the different accounting procedures for specific accounts of the Brain Storming
cooperatives.
6 Audit of Banks • Articulate the different characteristics of a bank. Lecture Discussion
• Identify the different risk associated with banks. Case Digest
• Identify the considerations included in planning the audit. Recitation
• Analyze and understand the system of internal control and perform a test Brain Storming
of control.
• Determine the general and specific substantive procedure for a particular
item in the financial statement of a bank.
7 Audit of Construction Companies • Identify the construction life cycle. Lecture Discussion
• Enumerate the construction project delivery methodologies. Case Digest
• Identify the audit consideration in planning the audit. Recitation
• Determine the different substantive testing procedures for construction Brain Storming
companies.
• Resolve issues related to sub-contractor.
8 Audit of Insurance Companies • Define key concepts related to the insurance industry, including the roles Lecture Discussion
of insurance companies, types of insurance services, and the significance Case Digest
of the Insurance Code of the Philippines. Recitation
• Describe the key objectives and steps involved in auditing insurance Brain Storming
companies in the Philippines, including the evaluation of financial
statements, compliance with regulatory requirements, and the
assessment of internal controls and risk management systems.
• Compare and contrast the key features and implications of IFRS 4 and IFRS
17, emphasizing how the transition to IFRS 17 affects the accounting
practices of insurance companies.
• Demonstrate the ability to execute substantive testing of financial
transactions within an insurance company, including verifying premium
revenue recognition, evaluating claims processing, and assessing
investment valuations according to established audit procedures.
• Assess the impact of regulatory frameworks and technological
advancements on the operations of insurance companies in the
Philippines, considering both challenges and opportunities for growth
within the industry.
• Critically assess the findings of an insurance company audit, including the
implications of internal control deficiencies, compliance issues, and the
overall financial health of the company, while providing recommendations
for improvement.
9 MIDTERM EXAMINATIONS •
10 Audit of Business Process Outsourcing • Identify the key definitions of Business Process Outsourcing (BPO) and Lecture Discussion
Companies BPO companies. Case Digest
• Explain the roles and responsibilities of various government agencies that Recitation
regulate BPO companies in the Philippines and apply this knowledge to Brain Storming
assess compliance with regulatory requirements.
• Explain the significance of outsourcing non-core business activities to BPO
providers.
• Analyze the audit objectives of BPO companies, identifying how these
objectives relate to operational efficiency, regulatory compliance, and
financial integrity, and evaluate the effectiveness of these audit processes
in improving BPO operations.
• Demonstrate the process of evaluating potential BPO providers based on
their service offerings and cost-effectiveness.
• Design comprehensive risk mitigation plans for BPO companies by
identifying potential risks, assessing their likelihood and impact, and
proposing actionable strategies to enhance compliance and operational
effectiveness.
11 Audit of Mining Companies • Analyze the regulatory and environmental requirements relevant to Lecture Discussion
mining operations and determine their implications on audit procedures, Case Digest
ensuring a thorough understanding of compliance objectives. Recitation
• Analyze the key regulatory frameworks and compliance requirements Brain Storming
governing mining companies, explaining their impact on the auditing
process.
• Evaluate the internal controls within a mining company’s operational
processes to assess their effectiveness in preventing fraud, ensuring
financial accuracy, and enhancing operational efficiency.
• Evaluate the internal control mechanisms of a mining company, identifying
potential weaknesses that could lead to financial misstatements or
operational inefficiencies.
• Develop a comprehensive audit plan that includes key compliance,
environmental, and financial metrics, allowing the auditor to identify and
address high-risk areas in mining operations systematically.
• Develop a structured audit approach for assessing a mining company's
adherence to environmental and social responsibilities, incorporating
steps to evaluate environmental impact and community engagement
initiatives.
12 Audit of Logistics Companies • Explain the key functions and processes involved in logistics operations, Lecture Discussion
including inbound and outbound logistics, warehousing, inventory Case Digest
management, transportation management, and order fulfillment. Recitation
• Identify and describe the key government agencies that regulate logistics Brain Storming
companies in the Philippines, including their functions and
responsibilities.
• Analyze the challenges faced by the logistics industry in the Philippines,
such as geographical complexity, infrastructure gaps, and regulatory
issues, and evaluate the impact of these challenges on logistics operations
and supply chain efficiency.
• Analyze the impact of government regulations on the operational
efficiency and sustainability practices of logistics companies in the
Philippines.
• Apply knowledge of regulatory frameworks by assessing how specific
logistics companies adhere to the laws and standards set by these
agencies.
• Design a logistics strategy for a hypothetical e-commerce company in the
Philippines that incorporates innovative solutions for last-mile delivery,
sustainability, and technology integration.
13 Audit of Utility Companies • Define Utility Companies: Understand the critical roles and characteristics Lecture Discussion
(Electricity, Water and of utility companies in society. Case Digest
Telecommunication Industries) • Explore Regulatory Frameworks: Investigate the legal aspects and Recitation
regulations governing utility operations. Brain Storming
• Identify Types of Utilities: Recognize various utility sectors and their
operational specifics.
• Analyze Accounting Standards: Examine the accounting standards that
apply specifically to utility companies.
• Understand Audit Procedures: Learn detailed steps involved in auditing
utility companies.
• Examine Current Trends: Review recent developments in the utility sector
globally and locally.
14 Audit of Hospitals • Define Hospitals: Understand the critical roles and characteristics of Lecture Discussion
hospitals in the healthcare system. Case Digest
• Explore Regulatory Frameworks: Investigate the legal aspects and Recitation
regulations governing hospital operations. Brain Storming
• Identify Types of Hospital Services: Recognize the various services
provided by hospitals, including emergency, inpatient, and outpatient
care.
• Analyze Accounting Standards: Examine the accounting standards
applicable to hospitals, particularly Philippine Financial Reporting
Standards (PFRS).
• Understand Audit Procedures: Learn the detailed steps involved in
auditing hospitals, focusing on financial and operational audits.
• Examine Current Trends: Review recent developments in the healthcare
sector, including technological advancements and value-based care
models.
15 Audit of Academic Institutions • Define the characteristics and functions of academic institutions. Lecture Discussion
• Explore the regulatory frameworks governing academic institutions in the Case Digest
Philippines. Recitation
• Identify the various types of academic institutions and their operational Brain Storming
specifics.
• Analyze accounting standards and financial reporting requirements
applicable to educational entities.
• Understand the audit procedures tailored for academic institutions.
• Examine current trends and challenges facing the academic sector.
16 Audit of E-Commerce • Define e-commerce and its various forms. Lecture Discussion
• Identify the characteristics and operational framework of e-commerce Case Digest
companies. Recitation
• Analyze the unique challenges and risks associated with auditing e- Brain Storming
commerce operations.
• Evaluate the regulatory and compliance requirements impacting e-
commerce businesses.
• Understand the trends and developments in the e-commerce industry
that affect audit practices.
17 FINAL EXAMINATIONS •