Advance II Course Outline

Wollega University
College Of Business and Economics

Department of Accounting and finance
Course outline
Course Title: Advanced Accounting-II
Course Code: Acct 412
Course Code: 3
Prerequisite: Acct 411
Lecture Hour: 3 hours
Course Description:
Advanced Accounting II assumes a sound grasp of the basics of accounting. It explores more
advanced and complex topics and issues in financial accounting and reporting dealing with analysis
of accounting for business combinations, consolidations, and segment reporting, interim statements,
bankruptcy and liquidation, accounting and reporting for foreign currencies in Ethiopia.
Course Objectives: At the end of the course students will be able to:
 Explain the term business combination (or familiarize themselves with term business
combination) and the need for business combination
 Identify types of business combinations,
 Explain and illustrate consolidated financial statements for combined businesses,
 Differentiate between parent and subsidiary company and illustrate accounting methods for
both companies,
 Know the difference between wholly owned subsidiary and partially owned subsidiary and
understand their accounting treatment.
 Define foreign currencies and illustrate methods of accounting for foreign currency
transactions.
Course contents
Chapter One: - Business Combination

 Nature of business combination
 Reasons for business combination
 Methods of arranging business combinations
 Method of Accounting for business combination
Chapter Two: Consolidations: On Date Of Purchase-Type Business Combination

 Parent Company- Subsidiary Relationships
 Consolidation of wholly Owned Subsidiary on Date of Purchase Type Business
Combination
 Consolidation of Partially Owned Subsidiary on Date of Purchase Type Business
Combination
 Equity method, partial equity method, and cost method
Chapter Three: Consolidation: Subsequent To Date of Purchase-Type Business Combination

 Parent Company–subsidiary relationships
 Consolidation of wholly owned subsidiaries
 Consolidation of Partially owned subsidiaries
Chapter Four: Segment Reporting & Interim Sporting

 Meaning and computation of segment revenue, and operating profit/ loss
 Interim reporting provisions of APB Opinion No 28
 Disclosure in interim financial dates
Chapter Five: Accounting for Bankruptcy and Liquidation
 Bankruptcy defined
 Accounting for liquidated business
 Accounting reorganized business
Chapter Six: Accounting for Foreign Transactions and Translation (optional)
 Foreign Exchange Rate and Consolidated Financial Statements
 Need for translation
 Basic translation methods
Reference & textbooks

Text: Modern Advanced Accounting-Moisch & Larsen
1. Advanced accounting 6th ed by. Hoyle, schaefer, & Doupink, 2001
2. Intermediate accounting 6th ed. Moisch and Larsen
3. Commercial code of Ethiopia 1960 book V
4. APB Opinion # 28, SFAS 141, 142,3,
5. Any other book on Advanced Accounting
Mode of Evaluation
Continuous Assessments ... . . . . . . . . . . . . . . . . . . . . . . . 70%
End Semester Exam. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30%
Total ------------------------------------------------------------ 100%
Course Title: Auditing I

Course Code: Acct 441
Credit hour: 3
Prerequisite: Acct 312
Lecture hour: 3 hours
Description: This course deals with the process of collecting and evaluating evidence to determine
whether an economic entity safeguards assets, maintains data integrity, achieves organizational goals
effectively, and consumes resource effectively. Topics included are: the nature and history of
auditing, its development, objectives, reporting responsibilities and standards; the audit process;
materiality, audit risk, internal control, audit testing, analytical review, audit evidence, planning and
control, working papers; introduction to systems and control; auditor’s report; the auditing
profession, qualifications, ethics, responsibilities, standards, regulations, statistical sampling,
reliance on other types of auditors, negligence, and legal liability.
Course Objectives: At the end of the course, students will be able to:
 Know historical development of and nature of auditing
 Know and understand objectives of auditing
 Differentiate between accounting and auditing
 Explain types of audit and auditors
 Explain and illustrate procedures of auditing, audit plan, audit risk, audit evidence and
materiality.
 Know and understand audit reporting standards and responsibilities of auditors
 Know profession, qualification, ethics, responsibilities and standards of auditing.
Course Content
Chapter I: Introduction
1.1. Historical evolution and development of auditing

1.2. Definitions and terminology
1.3. The nature, purpose and scope of audit
1.4. Types of audits and auditors
Chapter II: The Auditing Profession
2.1. Professional ethics

2.2. Characteristics of a profession
2.3. Rules of professional conduct
2.4. Due care (Skill, diligence and expeditiousness)
2.5. Independence, objectivity and integrity
2.6. The professional duty of confidentiality
2.7. Legal liability and responsibility
2.8. Truth and fairness
2.9. Materiality and the auditor
2.10. Appointment, remuneration and removal of auditors
2.11. Client acceptance procedures
2.12. Engagement letters
2.13 proclamations related to auditors liability to
 Third parties
 The client
Chapter III: Auditing Principles and Tools
3.1. Audit objectives
3.2. Auditing principles and standards
3.3. Auditing procedures and techniques
3.4. Audit approaches
3.5. Financial statement assertions
3.6. Audit planning
3.7. Audit program
3.8. Audit working papers
3.9. Reliance on the work of others in audit
Chapter IV: Internal Control
4.1. Definition
4.2. Principles and elements of internal control system
4.3. Internal control and external audits
4.4. Internal control on revenues and purchases
4.5. Internal control on payroll, cash and other areas; Report to management
4.6. Internal auditing
Chapter V: Audit Report
6.1. Types of audit reports
6.2. Part of audit reports
6.3. Audit opinion
6.4. The standard unqualified audit report
6.5. Departure from standard unqualified audit report
6.6. International auditing and reporting guidelines
References
Text
Arens & Loebbecke, Auditing, An Integrated Approach 7th ed. Prentice Hall Int’l:
Konrath, Larry, Auditing Concepts & Applications: A Risk Analysis Approach, 4th ed. South
western College USA, 1999
Guy, Dan M. etal, Auditing, 4th ed. The Dryden Press, Florida
Meigs, Whittinton, Peny and Meigs, Principles of Auditing, 9th ed. Irwin Publishing
co.1989 USA.
David N.Richiute, Auditing Concepts and Standards. South -Western Publishing co.1982 USA.
Willingtom and Carmichael, Auditing Concepts and Methods. 2nd ed. 1975 USA.
Whittington & Pany, Principles of Auditing, 11th edition, Irwin, 1995
Shekhar, Auditing, Vikas Publishing House, 2003

Walter B. Meigs & etal., Principles of Auditing, 9th edition, 1989

Johannes Kinfu, Auditing-Introduction to Principles and Practices, FBE, AAU
D.R. Carmichael & etal, Auditing Concepts and Methods, 5th edition, 1989
Alvin A. Arens & etal., Auditing an Integrated Approach, 5th edition, 1991
ACCA Text Books on Audit Framework and Audit Assurance and Internal Review
You are encouraged to read any Auditing text or material
JOURNALS, PERIODICALS AND MAGAZINES
1. Journal of Accounting Research, University of Chicago

2. Journal of accountancy AICPA edition
3. Interned auditing, Warren, Grham, & Lammont Publication
4. The Accounting Review
5. The Ethiopian Journal of Auditing and Accountancy
6. Journal on Accounting and Public Policy
Various Proclamations, orders and other legal provisions that affects Accounting and auditing
practices in Ethiopia
Mode of Evaluation
Continuous Assessments.. . . . . . . . . . . . . . . . . . . . . . . . . 40%
Mid Semester Exam. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20%
End Semester Exam. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40%
Total---------------------------------------------------------------- 100

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Wollega University

College Of Business and Economics

Chapter One: - Business Combination

Chapter Two: Consolidations: On Date Of Purchase-Type Business Combination

Chapter Three: Consolidation: Subsequent To Date of Purchase-Type Business Combination

Chapter Four: Segment Reporting & Interim Sporting

Reference & textbooks

Course Title: Auditing I

1.1. Historical evolution and development of auditing

Chapter II: The Auditing Profession

2.1. Professional ethics

Walter B. Meigs & etal., Principles of Auditing, 9th edition, 1989

You are encouraged to read any Auditing text or material

JOURNALS, PERIODICALS AND MAGAZINES

1. Journal of Accounting Research, University of Chicago

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