Republic Central Colleges

Plaridel St., 2009 Angeles City, Philippines

Tel. (045) 405-0121; 888-2853 / Fax (045) 322-5656
COLLEGE OF BUSINESS & ACCOUNTANCY
Bachelor of Science in Accountancy

SYLLABUS IN AUDITING 4
AUDITING AND ASSURANCE: SPECIALIZED INDUSTRIES
PHILOSOPHY
The total development of man based on Faith, Science, and Virtue.

MISSION
RCC provides quality education and services responsive to the changing needs of students and other stakeholders as well as the local and
global communities through:
 teaching and learning,
 support for students,
 research and development,
 relations with the community, and
 governance and management

VISION
RCC is a highly sustainable and innovative center of excellence in Central Luzon.

GOALS

1. Strengthened quality of teaching and learning

2. Improved recruitment admission, and academic and non-academic support system for students
3. Enhanced research culture
4. Relevant responsive and sustainable community program
5. Effective and efficient organizational structure and system
CORE VALUES
 Responsibility
We perform our duties effectively and efficiently for the best interests of our students and other stakeholders.

 Respect
We uphold human dignity and recognize differences and limitations to create peaceful and harmonious relationship.

 Integrity
We stand for truth, fairness and high ethical standards in the accomplishment of our mission.

 Compassion
We commit our genuine empathy and concern to inspire and empower our students and other stakeholders.

 Commitment
We dedicate ourselves in giving quality education and services to our students and other stakeholders.

 Excellence
We pursue high standards of excellence in the performance of our functions in instruction, research and community extensions.

I. COURSE DESCRIPTION : This course covers detailed approaches to problems and situations normally encountered in the independent
examination of financial statements of entities engaged in special industries such as banking and financial
institutions, real estate, business process outsourcing (BPO) entities, health maintenance organizations (HMO),
holding entities, logging and mining entities. Learners must be able to identify the audit procedures, prepare audit
adjustments and complete working papers to serve as bases for the preparation of audit reports for entities
belonging to special industries.

Credit : 3 Units
Number of Hours : (54 hrs.)
Pre-requisite : Auditing 2 & 3
II. DESIRED OUTCOMES

RCC Graduate BSA Graduate Outcomes Course Outcomes (CO) Domain

Outcomes
On the completion of the program, graduates
On the completion of the course, students should be able to:
should be able to:
Articulate and discuss the latest CO1 Apply the Philippine Standards on Auditing on examination of Psychomotor
Competent development in the fields of accountancy the fairness of the presentation of the financial statements
Graduate
CO2 Discuss the current Philippine Financial Reporting Standards Cognitive
(PFRS) adapted b the Financial Reporting Standards (FRSC)
from the International Financial Reporting Standards (IFRS)
issued by the International Accounting Standards Board
(ASB)
Communicate effectively with stakeholders CO3 Prepare general purpose financial statements and notes to Psychomotor
both orally and in writing financial statements for stakeholders use

Demonstrate working knowledge in the CO4 Perform independent audit of financial statements Psychomotor
areas of financial accounting and reporting,
cost accounting and management,
management accounting, auditing, CO5 Prepare audit reports and other reports to management Psychomotor
accounting information systems, taxation
and accounting research
Design an appropriate computer based information systems Psychomotor
CO6 in organizations such as financial accounting system,
Employ technology as a business tool in performance management and monitoring system, payroll
capturing financial and non-financial system and executive information system
information, preparing reports and making
decisions
RCC Graduate BSA Graduate Outcomes Course Outcomes (CO) Domain
Outcomes
On the completion of the program, graduates should be On the completion of the course, students should
able to: be able to:
Responsible Work effectively a independently in multi- CO7 Conduct a planning and problem solving meeting Psychomotor
Graduate disciplinary and multi-cultural teams to resolve issued related to a business
transaction or event

Appraise ethical problems/issues in practical CO8 Differentiate either actively or passively Affective
business and accounting situations and recommend subverting the attainment of the organization’s
appropriate courses of action tht adhere to the legitimate and ethical objectives
professional code of ethics
CO9 Relate professional limitations or other constrains Affective
that would preclude responsible judgment or
performance of an activity

Committed and Preserve and promote Filipino historical and cultural CO10 Identify to the contribution of a Professional Affective
Reflective heritage particularly Kapampangan heritage Filipino accountant to the development of the
Lifelong Learner economy in compliance to the Philippine Financial
Reporting Standard, Philippine Act of
Accountancy and Philippine Standards on
Auditing

Compassionate Demonstrate corporate citizenship and social CO11 Demonstrate corporate citizenship and social Affective
and Service responsibility, exercise high personal moral and responsibility strategies and compliance action
Driven Graduate ethical standards plan for a business
III. COURSE OUTLINE

COURSE TIME TEACHING/LEARNING ASSESSMENT

LEARNING OUTCOMES CONTENT/TOPIC
OUTCOME FRAME ACTIVITIES METHOD/TASKS
At the end of the lesson, the
learner will be able to: Strategy/methodology  Recitation
● Lecture ● Seatwork
 Define specialized industry A. Introduction ● Discussion
CO1, CO2, 4 hours ● Multi-media ● Short answers
 Identify different Specialized 1. Definition of Specialized Industry
CO8, CO9, presentation  QuizClass
Industry
CO10, 2. Example of Specialized Industry ● Case analysis/ participation
 Determine what make these  Quizzes
C011 industries specialized 3. What make these industries specialized? presentation
● Group/team  Statement Analysis
 Explain different audit  Seatwork
4. Audit Considerations in audit of learning
consideration in auditing  Boardwork using
specialized industry specialized industry ● Video/film clip
analysis google Docs sharing
a. Competence ● Individual/group or Jamboard
presentation  Library/ Scholarly
b. Audit Planning Research
● Virtual
c. Reliance on experts synchronous/  Case, video and/or
asynchronous film clip critiquing
meeting/learnin  Virtual term
g activities examination
● Virtual
presentation & LMS:
online apps G Workspace for
activity Education: Google
Classroom
 COURSE TIME TEACHING/LEARNING ASSESSMENT
LEARNING OUTCOMES CONTENT/TOPIC
OUTCOME FRAME ACTIVITIES METHOD/TASKS
At the end of the lesson, the learner
will be able to:
Strategy/methodology  Recitation
B. Audit and Assurance 7 hours ● Lecture ● Seatwork
 Define Auditing 1. Definition and importance of Auditing ● Discussion
CO1, CO2, ● Multi-media ● Short answers
 Define Assurance engagement 2. Assurance Engagement
CO8, CO9, presentation  QuizClass
 Explain level of assurance a. Level of assurance engagement participation
CO10, engagement b. Audit, Attestation and Assurance ● Case analysis/
C011 presentation  Quizzes
 Apply the auditing procedure in c. Elements of Assurance engagement  Statement Analysis
auditing financial statements 3. Audit of Financial Statement ● Group/team
learning  Seatwork
 Discuss the principles of a. Complete list of Financial Statements  Boardwork using
preparation of financial ● Video/film clip
4. Principles of Preparation of Financial analysis google Docs sharing
statements statements or Jamboard
 Identity assertion in financial ● Individual/group
a. Accrual and cash basis presentation  Library/ Scholarly
statements b. Historical Cost Principles Research
 Explain risk assessment and ● Virtual
c. Realization Principles synchronous/  Case, video and/or
risk response film clip critiquing
d. Consistency Principles asynchronous
 Discuss types of Audit report  Virtual term
e. Full disclosure meeting/learnin
g activities examination
f. Objectivity Principles
● Virtual
5. Financial Statement Assertions LMS:
presentation &
6. Risk Assessment online apps G Workspace for
7. Risk Response activity Education: Google
8. Audit Report Classroom
 COURSE TIME TEACHING/LEARNING ASSESSMENT
LEARNING OUTCOMES CONTENT/TOPIC
OUTCOME FRAME ACTIVITIES METHOD/TASKS
At the end of the lesson, the
learner will be able to: C. Audit approached of Specialized
Industries 6 hours Strategy/methodology  Recitation
1. Hotel Industries ● Lecture ● Seatwork
CO1, CO2,  Learn the overview and updates ● Discussion
CO8, CO9, 2. Newspaper Companies ● Multi-media ● Short answers
of specialized industry in
CO10, 3. Shipping Companies presentation  QuizClass
Philippine setting
C011 ● Case analysis/ participation
 Differentiate different 4. School
presentation  Quizzes
specialized industries in 5. Restaurants
● Group/team  Statement Analysis
Philippines 6. Supermarket
learning  Seatwork
 Identify the different audit  Boardwork using
7. Construction Company ● Video/film clip
procedure in auditing google Docs sharing
specialized industries 8. Sugar industries analysis
● Individual/group or Jamboard
 Conduct research on different 9. BPO- Business Process Outsourcing  Library/ Scholarly
specialized industry 10. HMO- Health Maintenance Organization presentation
● Virtual Research
synchronous/  Case, video and/or
asynchronous film clip critiquing
meeting/learnin  Virtual term
g activities examination

PRELIMINARY EXAMINATION ● Virtual

presentation & LMS:
online apps G Workspace for
activity Education: Google
Classroom
 COURSE TIME TEACHING/LEARNING ASSESSMENT
LEARNING OUTCOMES CONTENT/TOPIC
OUTCOME FRAME ACTIVITIES METHOD/TASKS
At the end of the lesson, the
learner will be able to:
D. Specialized Industries-Agricultural 14 Strategy/methodology  Recitation
 Discuss PAS 41 activities hours ● Lecture ● Seatwork
CO1, CO2,  Define the different agricultural 1. Accounting standard of Biological assets ● Discussion
CO8, CO9, ● Multi-media ● Short answers
activities and biological assets a. PAS 41- Agriculture
CO10, presentation  QuizClass
and its measurement b. Examples of biological assets
C011 ● Case analysis/ participation
 Determine the auditing standard c. Example of agricultural activities  Quizzes
for Industries in agricultural d. Biological transformation presentation
● Group/team  Statement Analysis
companies e. Recognition  Seatwork
 Explain and present Audited learning
f. Measurement  Boardwork using
Financial statement of a real ● Video/film clip
2. Auditing approach/ procedure analysis google Docs sharing
company in agricultural industry 3. Financial Report of Industries in or Jamboard
● Individual/group
Agricultural Activities presentation  Library/ Scholarly
● Virtual Research
synchronous/  Case, video and/or
asynchronous film clip critiquing
meeting/learnin  Virtual term
MIDTERM EXAMINATION g activities examination
● Virtual
presentation & LMS:
online apps G Workspace for
activity Education: Google
Classroom
 COURSE TIME TEACHING/LEARNING ASSESSMENT
LEARNING OUTCOMES CONTENT/TOPIC
OUTCOME FRAME ACTIVITIES METHOD/TASKS
At the end of the lesson, the
learner will be able to: E. Specialized Industry- Bank and
Financial Institution industries 10 Strategy/methodology  Recitation
 Discuss the BSP regulations on hours ● Lecture ● Seatwork
CO1, CO2, Banks 1. BSP Regulations - Guidelines and Other ● Discussion
CO8, CO9, ● Multi-media ● Short answers
 Determine how Banks’ comply Regulations on Banks
CO10, presentation  QuizClass
to PFRS/PAS in preparation a. Banks’ Financial report in compliance
C011 ● Case analysis/ participation
their financial reports with PFRS/PAS​
presentation  Quizzes
 Identity different types of banks b. Types of banks in the Philippines and
● Group/team  Statement Analysis
in the Philippines its characteristics  Seatwork
 Distinguish Banks from learning
● Video/film clip  Boardwork using
commercial enterprises 2. Characteristics of Banks that generally
analysis google Docs sharing
 Determine how Bank chooses distinguish them from most other
● Individual/group or Jamboard
its external auditor commercial enterprises
presentation  Library/ Scholarly
 Identity the qualities of an 3. Bank’s External Auditor
● Virtual Research
external auditor a. The relationship between BSP and
synchronous/  Case, video and/or
 Discuss the Audit Plan for a banks’ external auditors film clip critiquing
Bank asynchronous
meeting/learnin  Virtual term
 Determine the procedure in b. Role of BSP
g activities examination
auditing a bank including the
c. Role of Auditor ● Virtual
audit risk LMS:
presentation &
 Present a real Audit report of d. Selection of External Auditor of banks G Workspace for
online apps
Bank in Philippines Education: Google
activity
4. Audit Plan on auditing Banks Classroom

5. Audit Risk to consider

6. Completing the Audit

7. Sample of Audit Report of a Bank Industry

 COURSE TIME TEACHING/LEARNING ASSESSMENT
LEARNING OUTCOMES CONTENT/TOPIC
OUTCOME FRAME ACTIVITIES METHOD/TASKS
At the end of the lesson, the
learner will be able to:
F. Specialized Industry- Mining industries 8 hours Strategy/methodology  Recitation
CO1, CO2,  ● Lecture ● Seatwork
CO8, CO9, IFRS 6 ● Discussion
CO10, ● Multi-media ● Short answers
C011 Mining Law in the Philippines presentation  QuizClass
● Case analysis/ participation
Auditing Mining and minerals presentation  Quizzes
● Group/team  Statement Analysis
Sample of Audit Report of a Mining Industry  Seatwork
learning
● Video/film clip  Boardwork using
analysis google Docs sharing
● Individual/group or Jamboard
presentation  Library/ Scholarly
● Virtual Research
synchronous/  Case, video and/or
asynchronous film clip critiquing
meeting/learnin  Virtual term
g activities examination
● Virtual
presentation & LMS:
online apps G Workspace for
FINAL EXAMINATION
activity Education: Google
Classroom

Total hours (including quizzes) 51

IV. COURSE OUTPUT/COURSE REQUIREMENTS

As evidence of attaining the above learning outcomes, the student has to do and submit the following:

a. Knowledge of Concepts (Major Examinations, Quizzes, Graded Recitation, Class Participation, Assignments & Activities) – CO1 & CO2
b. Application of the accounting principles and practices using the Philippine Accounting Standards(PAS), Philippine Financial Reporting
Standards (PFRS) and Philippine Standard of Auditing thru CPA board type of comprehensive examination
c. Research study
d. Community Service- an 8 hour community service will rendered before the semester will end

V. GRADING SYSTEM

Class Standing 67%

Quizzes 40%
Seatwork 30%
20%
Recitation/Participation/Boardwork
Assignment/others 10%
Major Exam 33%
TOTAL 100%

Formula for the Computation of Grades

Prelim Grade (PG) = Final Grade (FG) =

(Class Standing X 2) + Prelim Exam CS + [(PRE-FE X 30%) + (FE X 70%)] X 2 + MTG
3 3 .
2
Mid-term Grade (MTG) =
(CS X 2) + Mid-term Exam + PG
3 .
2
VI. REFERENCES

Cabrera, E ( 2020-2021). Principles of Auditing and Assurance Services. Manila:GIC Enterprises & Co.

BOOKS:

1. Cabarles L, Ocampo R. & Valdez R. ( 2019). Manila: DomDane Publisher

2. Cabrera, E. ( 2020-2021). Auditing and assurance concepts and applications. Manila: GIC Enterprises & Co
3. Cabrera, E. (2017). Auditing Theory. Manila: GIC Enterprises & Co
4. Cabrera, E. (2017). Applied Auditing. Manila: GIC Enterprises & Co
5. Cabrera, E. (2017). Auditing theory Reviewer. Manila: GIC Enterprises & Co
6. Cabrera, E.(2013). Comprehensive Reviewer in Auditing Theory. Manila: GIC Enterprises & CO,
7. Cabrera, E., and Cabrera, G. (2019). Corporate governance, business ethics, risk management and internal control. Manila: GIC Enterprises
& Co
8. CPE Committee. ( 2014). The New Philippine Standards on Auditing. Manila : Made Easy Books
9. CPE Committee. (2014). PFRS. Manila; PICPA
10. PICPA. (2018). PFRS. Manila: Northern Manila Chapter
11. Roque, G. ( 2016-17) CPA Examination Reviewer Auditing Problems. Manila: Conanan Educational Supply
12. Salosagcol, JG., Tui, M.F. and Hermosilla, R. E.. (2014). Auditing Theory, A Guide to understanding PSA. Manila: GIC Enterprises & Co
13. Valix, Conrado T., Peralta, Jose F. and Valix, Christian. (2021). Intermediate Accounting 1, 2 and 3. Manila: CIG Enterprises Company

WEBSITE REFERENCE:

Specialized industries. Retrieved on January 7, 2022 from https://auditinghelp.com/category/audit-of-specialized-industries

Specialized industries construction-contracting -companies. Retrieved on January 7, 2022 from https://auditinghelp.com/construction-contracting-companies-

14058
 What is a specialised industry? Retrieved on January 6, 2022 from https://www.accaglobal.com/in/en/student/exam-support-resources/professional-
exams-study-resources/p7/technical-articles/specialised-industries.html

What's the difference? A guide to Philippine bank charters. Retrieved on January 7, 2022 from
http://asianbanks.net/HTML/Countries/PH/PHcharters.htm

The Banking regulation review: Philippines. Retrieved on January 8, 2022 from https://thelawreviews.co.uk/title/the-banking-regulation-review/philippines
IAS 41, agriculture. Retrieved on January 8, 2022 from https://www.accaglobal.com/in/en/student/exam-support-resources/dipifr-study-resources/technical-
articles/ias-41.html

VII. SUMMARY OF REVISIONS

Revision Date Created by Short Description of Changes

1. January 8, 2022 Ms. Erlinda J. Hipolito 1. First edition of the syllabus

Prepared by: Approved by:

Ms. Erlinda J. Hipolito, CPA, MBM AIRWIN S. DITIANQUIN, DBA (CAR)

Faculty
Dean