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In recent years many accounting practitioners and academics have requested accounting educators to increase the emphasis on the development of students' critical thinking, communication, and interpersonal relationship skills. Development of these types of skills requires a shift from passive involvement to active involvement of students in the learning process. Unfortunately, current course materials provided by many publishers are not readily adaptable to this more active learning environment. The objective of writing this casebook was to develop course materials that would provide students hands-on-exposure to realistic cases involving all aspects of the audit process.
This casebook contains a collection of 36 auditing cases that address most major activities performed during the conduct of an audit from client acceptance to issuance of an audit report. Many of the cases are based on actual companies, some of which were engaged in financial reporting fraud. Several cases involve students working with realistic audit evidence and preparing and evaluating audit documentation. Some of the cases expose students to assurance and other value added services.
The cases included in this book are suitable for both undergraduate and graduate students. At the undergraduate level, the cases provide students with active learning experiences that reinforce key audit concepts addressed by the instructor and textbook. At the graduate' level, the cases provide students with active learning experiences that expand the depth of their audit knowledge. Use of the casebook will provide undergraduate and graduate students with opportunities to develop critical thinking, communication, and interpersonal relationship skills.
The casebook provides a wide variety of cases to facilitate different learning and teaching styles. For example, several of the cases can be used either as in-class exercises or out-of-class assignments. The instructor resource manual accompanying the casebook clearly illustrates the different instructional approaches available for each case (e.g., examples of cooperative / active learning activities and identification of which cases are useful for brief in-class exercises and / or out-of-class individual or group assignments) and efficiently prepares the instructor for leading interactive discussions. To access this manual, log onto www.prenhall.com/beasley.
We would like to thank our families for their understanding and support while writing this casebook. We would also like to thank our editor, Thomas Sigel, for his support with this endeavor.
Beasley, Mark S. : North Carolina State University, Raleigh
Buckless, Frank A. : North Carolina State University, Raleigh
Glover, Steven M. : Brigham Young University
Prawitt, Douglas F. : Brigham Young University
1. Jacksonville Jaguars: IT Risk and Assurance Services.
2. Your1040.Com: E-Commerce Revenue Recognition and Privacy Issues.
3. Brent Dorsey: Staff Auditor Professional Pressure.
4. Nathan Johnson: Solving Ethical Dilemmas, Should He Pocket the Cash.
5. Anonymous Caller: Recognizing It's a Fraud and Evaluating What to Do.
6. Phar-Mor: Accounting Fraud, Litigation, and Auditor Liability.
7. Enron Corporation: Implications of Not Identifying Audit Client Business Risks.
8. Runners Shop: Review of Audit Documentation and Litigation.
9. Dell Computer Corporation: Evaluation of Client Business Risk.
10. Ocean Manufacturing: The New Client Acceptance Decision.
11. Comptronix Corporation: Identifying Inherent and Control Risk Factors.
12. Flash Technologies: Risk Analysis and Client Issues.
13. Simply Steam Company: Evaluation of Internal Control Environment.
14. Easy Clean Company: Evaluation of Internal Control Environment.
15. Cendant Corporation: Evaluating Risk of Financial Statement Fraud and Assessing the Control Environment.
16. Waste Management: Evaluating Risk of Financial Statement Fraud and Internal Controls.
17. Xerox Corporation: Evaluating Risk of Financial Statement Fraud.
18. Red Bluff Inn: Establishing Effective Internal Control in a Small Business.
19. Saint James: Evaluation of Manual and IT-Based Sales Accounting Systems Risk.
20. Collins Harp Enterprises: Recommending General IT Controls.
21. Ann Taylor: Determining Planning Materiality and Tolerable Misstatement.
22. Northwest Bank: Developing Expectations for Analytical Procedures.
23. Laramie Wire Manufacturing: Using Analytical Procedures in Audit Planning.
24. Burlington Bees: Analytical Procedures as Substantive Tests.
25. Henrico Retail, Inc.: Understanding the IT Accounting System and Identifying Audit Evidence for Retail Sales.
26. Harley Davidson: Implications of Electronic Evidence in a Internet Based Supply Chain Network.
27. SSD TofC Revenue: Identifying Tests of Controls for the Revenue Cycle.
28. SSD ST Revenue: Identifying Substantive Tests for the Revenue Cycle.
29. SSD Risk Assessment Revenue: Selection of Audit Tests and Risk Assessment for the Revenue Cycle.
30. SSD TofT Expenditure: Performance of Tests of Transactions for the Expenditure Cycle.
31. SSD TofB Expenditure: Performance of Tests of Balances for the Expenditure Cycle.
32. Eyemax Corporation: Evaluation of Audit Differences.
33. Auto Parts, Inc.: Considering Materiality When Evaluating Accounting Policies and Footnote Disclosures.
34. K&K Inc.: Leveraging Audit Insights to Add Value.
35. Surfer Dude Duds, Inc.: Considering the Going Concern Assumption.
36. Murchison Technologies, Inc.: Evaluating Attorney's Response and Identifying Audit Report.
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