1. Information Systems Auditing • Instructor: Chris Westland, PhD, CPA • Certified Public Accountant (Texas License 17277)

2. Today’s TopicsWhat is IS Auditing? Course Organization What is IS Auditing? Why is it Important? What is the Industry Structure? Attestation and Assurance Accounting Irregularities and Financial Fraud (Video)

3. Schedule

4. Logical Structure of the CourseWith Readings from the Text

5. Prac·ti·cum (prăk-tĭ-kəm) nounLessons in a specialized field of study designed to give students supervised practical application of previously studied theory

6. Preliminaries: Evaluation • http://teaching.ust.hk/~ismt300t • Chapter Spot Tests 50% • Midterm Examination 20% • Final Examination 20% • Class Participation 10%

7. What is Auditing?

8. What is Auditing?Nature of work • Accountants prepare, analyze, and verify financial reports and taxes, • and furnish this information to individuals and managers in business, industry, and government • The three major fields in accounting are: • Auditing • Public Consulting • Corporate / Internal

9. Public Accounting • Auditor: An auditor examines an organization's financial statements, verifies the accuracy of the financial records, examines management procedures and internal controls to ensure accuracy, and checks for mismanagement, waste, or fraud. • The auditor may review company operations compliance with corporate policies, laws, and government regulations. The auditor, or reports to investors and authorities such as the federal government that financial statements have been prepared and reported correctly. • Other Public: Public accountants perform accounting, auditing, tax, and consulting activities for public accounting firms, their own businesses, governments, nonprofit organizations, or individuals. • Typically, accountants specialize in one aspect of accounting, concentrating on taxes or bankruptcies, for example. Some become consultants who offer advice on compensation, employee benefits, the design of accounting processing systems, or how to safeguard assets.

10. Corporate / Internal • Often called management, industrial, or corporate accountants, private accountants record and analyze financial information for the employer and prepare financial reports for stockholders, creditors, regulatory agencies, and tax authorities. • Duties may include budgeting, performance evaluation, cost management, and asset management. An accountant also may work as part of an executive team in strategic planning or new product development. • Entry-level private accountants often start as cost accountants, junior internal auditors, or as trainees for other accounting positions.

11. Qualifications • Auditors must have: • ability to analyze, compare, and interpret facts and figures quickly; and be able sound judgments based on this information. • should have good oral and written communication skills, well-developed interpersonal skills, and • ability to work in cross-functional teams. • Business systems and computer skills are required. • Some employers prefer hiring individuals with a master's degree in accounting or a master's degree in business administration. • Most want to hire someone who is familiar with computers and accounting and internal auditing software applications. • Changing legislation regarding taxes, financial reporting standards, international competition, business investments, mergers, and other financial matters require accountants and auditors to continuously update their knowledge.

12. CPAs • Most accounting positions require at least a bachelor's degree in accounting or a related field. • Based on recommendations made by the American Institute of Certified Public Accountants (AICPA), certified public accountant (CPA) candidates must complete 150 semester hours of college coursework – an additional 30 hours beyond the usual four-year bachelor's degree to become licensed. • CPA certificate applicants to have some accounting experience. Almost all states require a CPA and other public accountants to complete a minimum number of hours of continuing education before a license can be renewed.

13. Employment Outlook • Job opportunities for accountants are expected to grow 10 to 40 percent per year through 2006 due to the increasing number of new businesses spurred by China’s growing economy. • Jobs with major accounting and business firms remain the most sought after by new graduates. • More jobs will be available replacing thousands of accountants and auditors who retire or transfer to other occupations each year. • Accountants and auditors who have earned certification or licensure or who have advanced degrees will have the best job prospects.

14. (Where Do Information Systems Fit in?)Compare an Accounting Department in the early 1900s

15. (Where Do Information Systems Fit in?)With an Accounting Department in the 1970s

16. (Where Do Information Systems Fit in?)With an Accounting Department Today (well … not everywhere, but you see the potential….)

17. (Where Do Information Systems Fit in?)With an Accounting Department of 2020 (… at least my prediction….)