Suggested Term Paper Topics (Choose Only One)
Internal Control:
• Describe and discuss the impact of the Sarbanes-Oxley act on management and auditors’ responsibilities to study and report on internal controls.
• How do SAS 55 and SAS 78 differ from earlier auditing standards concerning internal controls?
• How do auditors assess the control environment?
• Internal Control—Integrated Framework (COSO): What are the major components and issues?
• Review and summarize the major provisions in PCAOB Auditing Standard No. 5
• How can internal controls be strengthened in a small business where ideal separation of duties is not possible?
• Was it right for the regulators to exempt non-accelerated companies from the SOX 404 internal control audit?
Fraud, Errors and Illegal Acts:
• What are the auditors’ responsibilities to detect fraud, errors and illegal acts? How have these responsibilities changed as a result of SAS 99 and the Sarbanes-Oxley Act?
• What can management and the auditors do to help prevent fraud, errors and illegal acts?
• How can auditors become better trained to recognize complex financial crime?
• How does the IRS detect fraud?
Legal Liability:
• How has auditor’s exposure to litigation changed as a result of the passage of the Sarbanes Oxley Act?
• How vulnerable are auditors to lawsuits in connection with compilation and review engagements?
• What is the AICPA doing to help reduce auditors’ legal liability exposure?
Other Topics:
• How does the PCAOB differ from its predecessor, the Independence Standards Board (ISB)?
• Is it likely that the PCAOB will be able to fulfill the AICPA’s historical role as the issuer of auditing and ethical standards?
• Going concern opinions: How have the standards relating to auditors responsibility with respect to the issuance of the going concern opinions evolved over time.
• Mandatory Auditor Rotation: Should the PCAOB mandate auditor rotation?
• Provision of non-audit services and auditor independence.
• Internal control effectiveness and financial reporting quality.
Some Important Journals:
• The Journal of Accountancy
• The CPA Journal
• Current Issues in Auditing
• Accounting Horizons
• Auditing: A Journal of Practice and Theory
• Journal of Accounting, Auditing and Finance
• Journal of Accounting and Public Policy
• The Pennsylvania CPA Journal, published by the PICPA
• The Internal Auditor, published by the Institute of Internal Auditors
Grading Criteria
The paper will be graded on four dimensions: (1) Content, (2) Structure, Organization and Development, (3) Style, and (4) Grammar.
• Content (Addresses the topic; Provides sufficient textual evidence to support the argument)
• Structure, Organization and Development
o Introduction (Is present in the paper; Includes the author’s conclusions; Indicates how the paper is organized)
o Each Paragraph (Includes a topic sentence; Develops one main idea; Has a transition sentence (where necessary) linking it to the next paragraph)
o The conclusion (Recaps the thesis statement and the essay’s main points; Presents a closing statement of the writer’s position)
o The entire composition (Is logically organized; Has a solid argument with supporting evidence)
o Main points (Are relevant to the thesis statement; Are discussed without too much repetition)
• Style (Is concise and precise; Cites references correctly)
• Grammar (Is free of misspellings; Is free of grammatical mistakes; Lacks incomplete sentences; Uses correct punctuation; Is free of jargon and clichés)
Points will be taken off for the following:
1. Spelling mistakes (-2.5% for each spelling mistake). A spell-check will take care of many problems but remember that Word will not differentiate (for example) between “its” and “it’s”.
2. Single-spaced manuscript (-20%).
3. Insufficient margins (-2.5% for each margin that is less than 1″. There are twelve margins in a three-page paper).
4. Page limit exceeded (-1% per line exceeding the page limit).
5. Late submission without valid, documentable excuse (-10% if late by 1 hour, -20% if late by six hours, and -30% if late by a day). I will not accept papers if late by more than one day.
6. Small font size (-10%).
7. Pages not numbered (-5%).