Escola de Economia e Gestão. Financial Audit

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Escola de Economia e Gestão

Financial Audit

Learning Outcomes:

Analyse and understand the concept of financial auditing, its objectives, justification, usefulness, and limitations.

Analyse and understand the evolution and regulation of the audit profession in Portugal. Know and understand the engagement and planning procedures of a financial statements audit. Know and understand the concept of audit evidence and the process of obtaining the audit evidence. Understand, analyse and apply the main auditing standards and procedures of a financial statements audit.

Know, understand and write the audit reports.

Analyse, discuss (and research for) contemporary issues in auditing, related with auditor’s independence and audit quality.

Program:

Financial Auditing – Concept and Objective.

The Financial Auditing in Portugal – Evolution and Regulation; Legal Regime of Portuguese Statutory Auditors.

The commitment and planning of an audit of financial statements. The audit evidence.

The main aspects of an audit of financial statements - the audit procedures in the main areas of the Balance Sheet and the Income Statement. Exercises.

The audit reports. Exercises.

Current issues in audit profession and current research topics in the area: auditor’s independence and audit quality.

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Bibliography

Arens, A. A. and Loebbecke, J. K. (2005). Auditing – An Integrated Approach. New Jersey, Prentice Hall. Baptista da Costa, C. and Alves, G. (2008). Casos práticos de Auditoria Financeira, 5ª Ed. Lisboa, Rei dos Livros.

Baptista da Costa, C. (2010). Auditoria Financeira – teoria e prática, 9ª Ed. Lisboa, Rei dos Livros. Cosserat, G. W. (2004). Modern Auditing. 2^nd Ed. England, John Wiley & Sons, Ltd.

International Federation of Accountants (IFAC) (2010). Manual das Normas Internacionais de Controlo de Qualidade, Auditoria, Revisão, Outros Trabalhos de Garantia de Fiabilidade e Serviços Relacionados – Parte I (Normas Internacionais de auditoria e de Controlo de Qualidade).

Monteiro, D. and Pontes, S. (2002). Controlo, Risco e Amostragem em Auditoria. Relações Indissociáveis. Lisboa, Vislis Editores.Porter, B.; Simon, J. and Hatherly, D. (2008). Principles of External Auditing, 3^th Ed. England, John Wiley & Sons, Ltd.

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Complements of Management Accounting I

The Student understand the accounting role in Management The Student Identifies financial results for decision making; The Student identifies cost and results models for decision making The student conceives a performance management system

Program: Introduction

Performance measurement and management control systems Responsibility centres

The Tableau de Bord The Balanced Scorecard Theory of constraints

Stock management models and Japanese Management Accounting

Bibliography

Caiado, António Campos Pires (2011) Contabilidade Analítica e de Gestão, Áreas Editora, 6.ª Edição, Lisboa

Franco, V., Morais, A., Oliveira, A., Major, M., Sarrasqueiro, R. Jesus, M., Oliveira, B. (2006) Contabilidade de Gestão – Volume II – Orçamento Anual e Instrumentos de Avaliação do Desempenho Organizacional, Publisher Team

Johnson, H. e Kaplan, R. (1987) Relevance Lost – The Rise and Fall of Management Accounting, Harvard Business School Press: 153.

Jordan, H, Neves, João e Rodrigues, José (2011) O Controlo de Gestão – Ao serviço da Estratégia e dos Gestores, Áreas Editora, 9.ª Edição, Lisboa.

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Kaplan, R. e Norton, D. 1996. Translating Strategy into Action – The Balanced Scorecard, Boston, Massachussets, Harvard Business School Press.

Kaplan, R e Norton, D. (2004) Strategy Maps: Converting Intangible Assets into Tangible Outcomes, Harvard Business School Press, Boston Massachusets.

Neves, J. (2011) Avaliação e Gestão da Performance Estratégica da Empresa, Texto Editores

Major, J. e Vieira, R. (2009) Contabilidade e Controlo de Gestão – Teoria Metodologia e Prática, Escolar Editora.

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Complements of Financial Accounting I

Identify the SNC process creation and its constituents

Identification, measure and recognition of the tangible and intangible assets, and Investment Properties Identification, measure and recognition of the financial instruments

Define, measure and recognition of deferred taxes.

Discuss and develop critical thinking on the accounting subjects under study.

Program:

Harmonization and normalization of the Portuguese accounting system: The SNC context Tangible Assets

Investment Properties

Financial Instruments (NCRF 27,13 e15) Deferred taxes

Bibliography

Barth, M., e Lang, M. (2008) "International Accounting Standards and Accounting Quality", Journal of Accounting Research, Vol. 46, No. 3, pp 467–498.

Cairns, D. Massoudi, D., Taplin, R. e Tarca, A. (2011) “IFRS Fair Value Measurement and Accounting Policy Choice in the United Kingdom and Australia”, The British Accounting Review, Vol. 43, pp.1-21. Epstein, B., Jermakowicz, E. (2008) IFRS 2008: Interpretation and Application of International Accounting and Financial Reporting Standards, Wiley.

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Gomes, J., Pires, J. (2011) Sistema de Normalização Contabilística - Teoria e Prática, Edições Vida Económica, Lisboa.

Grenha, C., Cravo, D., Batista, L. e Pontes, S. (2009) Anotações ao Sistema de Normalização Contabilística, Edição CTOC, Lisboa.

Kieso, D., Weygandt, J e Warfield, T. (2010) Intermediate Accounting: IFRS Edition, Wiley.

PriceWaterHouseCoopers (2009) Financial Instruments under IFRS - A guide through the maze, June, 3rd Edition.

Rodrigues, L. e Pereira, A. (2004) Manual de Contabilidade Internacional: A diversidade contabilística e o processo de harmonização internacional. Lisboa: Publisher Team.

Weygandt, J., Kimmel, P. e Kieso, D. (2010) Financial Accounting: IFRS edition, Wiley. Normativo contabilístico: SNC e IAS/IFRS.

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Taxation I

The student knows, analyzes, interprets and relates the concepts and rules of the Income Tax of Individuals (IRS).

The student knows, analyzes, interprets and relates the concepts and rules of the Municipal Property Tax (IMI).

The student knows, analyzes, interprets and relates the concepts and rules of the Tax on Property Transfer (IMT).

4The student knows, analyzes, interprets and relates the concepts and rules of Stamp Duty (IS).

Program:

Tax on income of individuals

Municipal tax on immovable property

Municipal tax on onerous transfer of propertyStamp duty

Bibliografia Principal

Código do Imposto sobre o Rendimento das Pessoas Singulares Código do Imposto Municipal Sobre Imóveis

Código do Imposto Municipal Sobre as Transmissões Onerosas de Imóveis Código do Imposto de Selo

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Accounting History

Discuss different accounting practices pre-modern and modern in their historical context. Demonstrate the usefulness of the historical perspective in accounting research.

Analyse the historical developments of accounting until the present days. Evaluate and criticise the existing accounting history literature.

Program:

Accounting history from Ancient Times to the 20^th century. Accounting History in Portugal: from foundation to the 20^th century. Accounting History Research.

Bibliography

Amorim, J. (1968). Digressão através do Vetusto Mundo da Contabilidade, Porto, Livraria Avis.

Carnegie, G. D., &Napier, C. J. (1996). Critical and interpretive histories: insights into accounting's present and future through its past. Accounting, Auditing & Accountability Journal, 9(3), 7-39.

Edwards, J., & Walker, S. (2009). The Routledge Companion to Accounting History. New York: Routledge. Gomes, D. (2000). Contribuição para a História da Contabilidade: E evolução dos registos Contabilísticos e a Aplicação da Partida Dobrada em Portugal. Dissertação de Mestrado, Escola de Economia e Gestão/Universidade do Minho.

Gomes, D. (2007). Accounting Change in Central Government: The Institutionalization of Double entry Bookkeeping at the Portuguese Royal Teasury (1761-1777). Tese de Doutoramento, Escola de Economia e Gestão/Universidade do Minho.

Gomes, D. e Rodrigues, L. L. (2009). “Investigação em História da Contabilidade”, in Vieira, R. e Major, M. J. (Eds.), Contabilidade e Controlo de Gestão: Teoria, Metodologia e Prática (pp. 209-239). Lisboa: Escolar Editora.

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Complements of Management Accounting II

The student develops a budget system;

The student computes and analyses budget deviations.

The student recognises the importance of management accounting in the process of decision making; The student identifies and implements an Activity Based Costing system;

The student understands and implements a system of performance management based on Benchmarking methodology.

Program:

Budget management.

The application of standard costs as a management tool for planning and control. Cost accounting for decision making.

The importance of indicators and Benchmarking.

Bibliography

Drury, C. (2004). Management and Cost Accounting, 6ht Edition, Thomson Learning.

Franco, V. S.; Morais, A. I.; Oliveira, A.; Major, M. J.; Serrasqueiro, R.; Jesus, M. A. e Oliveira, B. (2007). Temas de Contabilidade de Gestão: Gestão Orçamental e Medidas Financeiras de avaliação do desempenho. 2ª Edição. Lisboa: Livros Horizonte.

Franco, V. S.; Oliveira, A.; Morais, A. I.; Oliveira, B.; Loureçnço I.; Major, M. J.; Jesus, M. A. e Serrasqueiro, R. (2009). Temas de Contabilidade de Gestão: Os Custos, os resultados e a informação para a Gestão. 2ª Edição. Lisboa: Livros Horizonte.

Garrison, R. H. e Noreen, E. W. (2003) Management Accounting McGraw-Hill/Irwin.

Jordan, H, Neves, J. e Rodrigues, J. (2002). O Controlo de Gestão – Ao serviço da Estratégia e dos Gestores, Áreas Editora, 4.ª Edição, Lisboa.

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Kaplan, R e Norton, D. (2004). Strategy Maps: Converting Intangible Assets into Tangible Outcomes. Harvard Business School Press. Boston Massachusets.

Complements of Financial Accounting II

Identify and understand the group of companies to be consolidated;

Distinguish, understand and apply the methods and techniques of consolidation; Produce, explain and interpret the consolidated accounts;

Explain and record the merger of companies Explain and record the division of companies.

Program:

Consolidation of accounts

The merger of companies: concept and modalities; process and effects, and bookkeeping.

The division of companies: concept and modalities, process and effects, conditions, and bookkeeping

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Bibliography:

Almeida, R., Pinheiro, P., Dias, A., Carvalho, F., Almeida, M. e Lopes, C. (2010) Consolidação de Contas, Edições Sílabo.

Kieso, D., Weygandt, J e Warfield, T. (2010) Intermediate Accounting: IFRS Edition, Wiley.

Pires da Silva, E., Jesus, T. e Pires da Silva, A. (2010) SNC Contabilidade Financeira Casos Práticos Tomos I e II, Rei dos Livros.

Radebaugh, L. Gray, S. e Black, E. (2006) International Accounting and Multinational Enterprises. 6th Edition, John Wiley & Sons Limited.

Silva, F., Pereira, J. e Rodrigues, L. (2006) Contabilidade das Sociedades, 12ª Ed., Plátano Editora. Weygandt, J., Kimmel, P. e Kieso, D. (2010) Financial Accounting: IFRS edition, Wiley.

Normativo contabilístico: SNC e IAS/IFRS.

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Taxation II

The student identifies, discusses and evaluates the impact of the CNS in IRC. The student meets, discusses and evaluates the transfer price, prior agreements on transfer pricing as well as the anti-abuse measures contained in the Portuguese tax system. The student meets, discusses and evaluates the implementation of the regime for taxing groups of companies.

The student knows the concepts and analyzes related to international double taxation and knows the OECD Model Convention.

The student meets, discusses and evaluates changes to the VAT Code, particularly as to the location of services.

Program:

Changes to the CIRC resulting from the introduction of the CNS. Transfer pricing

Special arrangements for the taxation of corporate groups International double taxation

Location of services for the purpose of VAT and recent changes.

Bibliography

Carvalho, Maria Graça Simões (2000). Aplicação das Convenções sobre Dupla Tributação. Rei dos Livros. Dithmer, Clara (2006). Preços de transferência – Casos Práticos, Editora Vida Económica.

Código do Imposto sobre o Rendimento das Pessoas Colectivas Código do IVA

Coelho, MH (2000).Os Preços de Transferência, Revista Contabilidade e Comércio nº 225, p.109/137. Palma, CC (2008). A introdução dos acordos prévios de preços de transferência na legislação fiscal portuguesa, Revista TOC nº 103, p.59/61.

Cunha, CAS (2009). A tributação na transição do POC para o SNC, Revista TOC , nº 116, p. 41/47.

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Accounting Theory and research Project

Identify and post the scientific knowledge in the several accounting research paradigms

Identify and understand the main assumptions of the most important theories used in accounting research.

Identify, organize, reference and analyse the most important literature for the subject under study Identify and plan a methodological strategy

Know and understand the use of several collecting data methods to select the ones more suitable for the subject under study

Know the ethics issue under accounting research.

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Program:

Scientific knowledge – research paradigms in accounting. Approaches to accounting theory. Conducting a research Project. Literature review and references. Planning the empirical research. Methods for collecting data. Ethics in accounting research.

Bibliography:

Barañano, A. M. (2004). Métodos e Técnicas de Investigação em Gestão. Lisboa: Edições Sílabo. Belkaoui, A.R. (2000). Accounting Theory (4th Edition). Thomson Learning: Business Press. Bryman, A., & Bell, E. (2007). Business research methods. Oxford: Oxford University Press. Ebrero, A. C., López, L. V. (1998). Metodologia de la investigación contable. Aravaca: McGrawHill.

Emmanuel, C., Gray, R. (2003). Preparing a research proposal for a student research dissertation: a pedagogic note. Accounting Education, 12:1, 1-10.

Hendriksen, E.S., Breda, M.F. (1992). Accounting Theory (5^nd Edition). USA: Irwin/McGraw-Hill

Hoque, Z. (2006). Methodological Issues in Accounting Research: Theories and Methods. Great Britain: Spiramus.

Major, M.J., Vieira, R. (2009). Contabilidade e Controlo de Gestão. Lisboa: Escolar Editora.

Ryan, B., Scapens, R. W., Theobald, M. (1992). Research Method and Methodology in Finance and Acccounting (2^nd Edition). London: Thomson.