Krannert Graduate School of Management
Accounting Courses
Undergraduate Students: You can major in Accounting or enroll in our Certificate of Advanced Accountancy Program. You can also concentrate in Accounting while majoring in Management, or you can minor in Accounting while majoring in Industrial Management or Economics. A minor in Accounting is also available in conjunction with other undergraduate majors.
Masters Students: We help you develop your managerial skills by offering courses in Financial Reporting, Managerial Accounting, Financial Statement Analysis and Tax Strategy.
Doctoral Students: We offer a Ph.D. in Management with a specialty in Accounting. For more information on our doctoral program, follow the Doctoral Program link on the right.
Courses Offered:
Undergraduate Courses
Introductory Accounting (MGMT 20000) The objectives of the courses are to help students:(1) understand what is in financial statements and what the statements say about a business, (2) identify the business activities that were responsible for the amounts that appear in the statements, and (3) understand how, when, and at what amount the effects of manager and employee actions will appear in the statements. Dr. Greig
Introductory
Accounting (MGMT 20000) This is a special
section tailored to
the needs of non-Krannert students. Michael Hayden
Management Accounting (MGMT 20100)
An introduction to accounting for management planning and control,
including cost accounting, budgeting, accounting control system, and use
of accounting information in management decisions.
Professor Thoman
Intermediate Accounting I (MGMT 35000)
Financial reporting for interested external
parties. This course emphasizes asset valuation,
income measurement, preparation of financial
statements, and develops an appreciation of
discretion available to preparers. Professors Ro
and Watts, Dr. Greig
Intermediate Accounting II (MGMT 35100)
Continuation of Intermediate Accounting I. An examination of additional
problems in financial reporting, including cash flows, liabilities,
owners' equity, leases, and pensions.
Professors Eskew and Goodman
Graduate & Upper Level Undergraduate
Advanced Accounting (MGMT 50300) (MGMT 59000) This course is an advanced course in financial accounting. A range of contemporary issues in financial reporting such as business combinations, investments, consolidations, inflation, multinationals, and tax allocation are covered. Both technical proficiency and user applications are emphasized in this course. Professor Li
Introductory Tax Accounting (MGMT 50400) This course is a one-semester course in federal income taxes, emphasizing the conceptual framework of the law. We pay particular attention to the 1) taxation of individuals, 2) income and deduction definitions, 3) the income and expenses of businesses, and 4) property transactions; including acquisition, depreciation and disposal. Because of the significant amount of tax legislation, this is an ambitious undertaking. The conflict between “breadth” vs. “depth” will be apparent throughout this course. The course goal is to understand tax concepts, not memorize tax rules. Professor Hatcher
Advanced Management Accounting (MGMT 50500) The competitive success of organizations is dependent on the quality of information about the various elements in the value chain. This course deals with the use of cost information in achieving strategic objectives of firms. Cost information can play a strategic role in pricing, product development, customer focus and process improvements. Obsolete or inadequate cost systems can impair overall corporate strategy and competitiveness. The objective of this course is to understand the role of cost analysis in the value creating process. In particular, we will study how cost measurement can affect strategic decisions, the design of modern cost systems, how cost information can lead to process improvement and value creation, how performance measurement and control systems work and create value. Professor Rowe
Auditing (MGMT 50600) In this class, we study the concepts and procedures of auditing, which is the systematic process of objectively obtaining and evaluating evidence regarding assertions about economic actions and events. Primary emphasis is on audits conducted by independent Certified Public Accountants, but topics apply to internal auditing as well. Scott Sorensen
Advanced Tax Accounting (MGMT 50700) Professor Hatcher
International Accounting (MGMT 50900) This course introduces upper level undergraduate and master’s students to the international aspects of accounting. Topics include the development of international accounting standards; the diversity of accounting practices across countries; and accounting issues specific to multinational enterprises, such as translation and consolidation of foreign operations and international transfer pricing and taxes. Professor Eskew
Management Control Systems and Auditing (MGMT 59000) This course provides a fundamental understanding of corporate governance systems and how such systems are designed, maintained, and used. The course includes an overview of critical control objectives relating to the Sarbanes-Oxley Act, and develops a fundamental understanding of seemingly disparate management control concepts embedded in "balanced scorecard", "economic value added", "management by objective", "management by exception", and similar methods. Particular emphasis is placed on the role of accounting information systems in management control, how the adequacy of management control systems can be evaluated, and how modern auditing techniques are used in maintaining the integrity of such systems. As a result, this is an important course for students interested in careers in public accounting and auditing, as well as for those interested in careers in corporate accounting and internal auditing. Dr. Robert Sorenson
Financial Statement Analysis (MGMT 59000) This class is an elective financial accounting course for undergraduate students at Krannert School of Management. The course is aimed to expose students to the issue of how investors and creditors use accounting numbers for making their investment and credit decisions. Specifically, the course attempts to help students learn and understand: (1) the content of corporate financial reports, (2) the use of various financial ratios and some important issues involved in financial ratios analysis, (3) the use of accounting numbers for company (business) valuation, (4) the importance of accounting earnings relative to (free) cash flows and some other measures of company performance and growth potential such as EBITDA (earnings before interest, taxes, depreciation & amortization), (5) how to forecast revenues, earnings and cash flows and other key accounting numbers, and (6) the use of accounting numbers for assessing the financial risk of companies. Professor Ro
Forensic Accounting
(MGMT 59000) The corporate scandals of recent
years, including Enron, Worldcom, Tyco, and
their resultant cost to society have had a big
impact on the accounting profession. Auditing
standards have been revised to increase
professional skepticism and put a stronger
emphasis on the detection of corporate fraud
during the audit process. Congress, through the
passage of the Sarbanes-Oxley Act of 2002, has
endeavored to increase the transparency of
financial reporting and reduce the likelihood of
future corporate scandals. These events have
increased the demand for graduates with an
understanding of forensic accounting and fraud
investigation.
This course will cover a variety of topics
including:
• Definition of fraud and forensic accounting,
including professional organizations in fraud
such as the Association of Certified Fraud
Examiners and career options in forensic
accounting.
• Who commits fraud and why including the
elements of the fraud triangle: Incentive,
Opportunity, and Rationalization.
• Fraudulent financial reporting: common forms
of financial reporting fraud, financial
restatements, and early detection.
• Employee fraud and asset misappropriation –
Fraud against organizations
• Money laundering, corruption, consumer fraud,
bankruptcy, divorce and tax fraud.
• Fraud prevention techniques.
• Investigative auditing and auditor
responsibility for fraud detection.
• Fraud investigations: Forensic accounting is
the examination that takes place after the
discovery of fraud and determines the “how”,
“who”, “what”, “where”, and “when”
• Rules of evidence and litigation support,
civil and criminal litigation, being an expert
witness. Dr. Greig
Accounting For Nonprofit and Governmental Entities (MGMT 59000) This course is intended to provide comprehensive coverage of accounting and financial reporting for governmental and not-for-profit entities that follow the relatively new financial reporting models prescribed by GASB. This course will examine the accounting and financial reporting issues of federal government agencies, the federal government at state and local levels, and not-for-profit organizations as they demonstrate accountability for financial and operational performance and compliance with regulations to resource providers and other interested parties. Dr. Robert Sorenson
MBA Courses
Accounting for Managers (MGMT 60000) The objective of this course is to enable consultants, investment bankers and managers at all levels to appreciate, understand and use accounting numbers. The major focus of this class is acquiring an understanding of financial (external) reports prepared in accordance with domestic generally accepted accounting principles (GAAP). The course will also introduce managerial accounting concepts generally used for internal decision-making. Professors Cain and Thoman
Managerial Accounting (MGMT 60100) This course examines the
firm's internal systems of costing products or services and their
interpretation. A variety of manufacturing and service industries are studied to
demonstrate design of flexible cost systems to match the firm's technological,
competitive and/or multinational environments. Applications to budgeting,
variance analysis, pricing models, performance evaluation and incentives are
demonstrated. Case discussion and analytical "what if" modes of instruction are
used to enhance managerial skills of students. Design and use of accounting data
are linked to other subjects in the program core and to ethical aspects of
accounting policy issues. (not offered in 2009-2010)
Financial Statement Analysis: Applied Valuation (MGMT 60200)
Financial Statement Analysis is a
course in how to use accounting information to
make business and investment decisions. Users of a firm’s financial statements
include the corporation’s own management team, corporate boards of directors,
creditors (banks and debt holders), regulators and individual and institutional
investors. Internally, the information is used to assess performance of units,
to evaluate performance of upper level management, to monitor the firm’s
investment and financing decisions and for comparison purposes with the firm’s
rivals. Externally, accounting information is used by financial analysts,
investors and (potential) acquirers to assess the value of the firm, by
creditors to assess its credit-worthiness, and by regulators (i.e., banking
regulators, the SEC and the FTC and the IRS).
The primary objective of
this class is to help you develop and sharpen your analytic abilities in
financial statement analysis and valuation paying particular attention to the
incentives of producers and users of this information. In addition to explaining
techniques, cases will be used to help you develop the tools and skills
required. In preparing cases for class, you should work in a group and focus not
on number crunching but on identification of problems and potential solutions.
Only once these have been identified is number crunching valuable. Let me
emphasize, this is a course in using accounting information (predominantly
financial statements) for decision-making. As such, we will not spend time on
the details of financial statement preparation and reporting except as they are
relevant to our focus on analysis and decision-making.
Professor Bagnoli
and Dr. Greig
Strategic Cost Management (MGMT 69000)
Strategic cost management (SCM) refers to the development
and use of cost information to create, communicate, implement, and control
strategies. The traditional tools of SCM include activity-based costing (ABC),
product life cycle management, target costing, benchmarking, economic value
added (EVA), balanced scorecard, and throughput accounting. Applying these tools
should lead to the continuous reduction of resources used while simultaneously
holding or even increasing value. This course describes these tools (along with
more recent developments) and provides illustrations of their use. This course
will expose you to a variety of important management issues, initiatives and
situations. Topics include:
· Finding Hidden Costs and Value
·
Complexity
· Competitive Intelligence
· Learning
· Modularity
·
Target Costing
· Theory of Constraints
· Supply Chain Incentives
·
Balanced Scorecard
· Pareto’s Law
· Global Operations (Including Tax
Issues)
· Economic Value Added
· The Cost Of Quality
· Benchmarking
(not offered in 2009-2010)
Taxes and Business Strategy (MGMT 60300) The objective of this course is to provide you with a framework for analyzing
tax planning. Adopting this approach has two important advantages. First, the
framework offers an approach to tax planning and business strategy that remains
useful long after the next revision of the tax code. Second, it offers an
approach that can be readily employed in an international setting. After
developing the framework, it will be applied to a variety of business settings
that integrate topics from accounting, finance and economics in order to provide
you with a more complete understanding of the role of taxes in business
strategy. Throughout, two important concepts will be applied: the concept of
implicit taxes (tax induced differences in before tax rates of return) and the
concept of tax clienteles (the effect of cross sectional differences in tax
rates). Topics covered include: Taxes and the organizational form for businesses
(partnerships, corporations, MLPs, LLCs, LLPs, etc.) Taxes and the value of
alternative savings vehicles Taxes and the creation of securities Taxes and the
use of derivatives Taxes and the repackaging of ownership rights Tax free
reorganizations and divestitures Taxes and their effects on M&A activity
Applications include:
(1) How taxes affect the choice of
organizational form (partnership, corporation, MLP, LLC, LLP, etc.) or the
structure of joint ventures
(2) How taxes affect the choice of securities
a firm issues
(3) How the use of derivatives affects tax
liability
(4) How taxes affect choices by multinationals
(5) How
taxes affect merger and acquisition decisions
(6) How taxes affect
restructuring and reorganization choices
We will emphasize that taxes are
only one input into decision making (the difference
between tax minimization and tax planning) and will
highlight two important general consequences of tax
codes: implicit taxes (tax induced differences in
before tax rates of return/prices) and tax
clienteles (the effect of cross sectional
differences in tax rates).
Advanced Financial Reporting (MGMT 69100) The content of this course includes selected financial reporting and
disclosure topics. Professor Cain