| Auditing Cases, 3/E | ||||||||
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Mark S. Beasley, North Carolina State University Publisher: Prentice Hall
Our Price: £31.99 |
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Description For undergraduate and graduate Auditing, Professional Research Case or capstone courses. Auditing Cases 3/e, through an active learning approach, provides a comprehensive case book focusing on various auditing activities. |
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Table Of Contents Section 1: Client Acceptance Case 1.1 — Ocean Manufacturing, Inc.: The New Client Acceptance Decision Section 2: Understanding the Client’s Business and Assessing Risk Case 2.1 — Your1040Return.com: Evaluating eBusiness Revenue Recognition, Information Privacy, and Electronic Evidence Issues Case 2.2 — Dell Computer Corporation: Evaluation of Client Business Risk Case 2.3 — Flash Technologies, Inc.: Risk Analysis and Resolution of Client Issues Section 3: Professional and Ethical Issues Case 3.1 — A Day in the Life of Brent Dorsey: Staff Auditor Professional Pressures Case 3.2 — Nathan Johnson’s Rental Car Reimbursement: Solving Ethical Dilemmas–Should He Pocket the Cash? Case 3.3 — The Anonymous Caller: Recognizing It’s a Fraud and Evaluating What to Do Case 3.4 — WorldCom: The Story of a Whistleblower Section 4: Accounting Fraud and Auditor Legal Liability Case 4.1 — Enron Corporation and Andersen, LLP: Analyzing the Fall of Two Giants Case 4.2 — Comptronix Corporation: Identifying Inherent Risk and Control Risk Factors Case 4.3 — Cendant Corporation: Assessing the Control Environment and Evaluating Risk of Financial Statement Fraud Case 4.4 — Waste Management, Inc.: Manipulating Accounting Estimates Case 4.5 — Xerox Corporation: Evaluating Risk of Financial Statement Fraud Case 4.6 — Phar-Mor, Inc.: Accounting Fraud, Litigation, and Auditor Liability Section 5: Internal Control over Financial Reporting Case 5.1 — Simply Steam, Co.: Evaluation of Internal Control Environment Case 5.2 — Easy Clean, Co.: Evaluation of Internal Control Environment Case 5.3 — Red Bluff Inn & Café: Establishing Effective Internal Control in a Small Business Case 5.4 — St. James Clothiers: Evaluation of Manual and IT-Based Sales Accounting System Risks Case 5.5 — Collins Harp Enterprises: Recommending IT Systems Development Controls Case 5.6 — Sarbox Scooter, Inc.: Scoping and Evaluation Judgments in the Audit of Internal Control over Financial Reporting Section 6: The Impact of Information Technology Case 6.1 — Harley Davidson, Inc.: Identifying eBusiness Risks and Related Assurance Services for the eBusiness Marketplace Case 6.2 — Jacksonville Jaguars: Evaluating IT Benefits and Risks and Identifying Trust Services Opportunities Also see the following cases: Case 2.1 - Your1040Return.com: Evaluating eBusiness Revenue Recognition, Information Privacy, and Electronic Evidence Issues Case 5.4 — St. James Clothiers: Evaluation of Manual and IT-Based Sales Accounting System Risks Case 5.5 — Collins Harp Enterprises: Recommending IT Systems Development Controls Case 9.2 — Henrico Retail, Inc.: Understanding the IT Accounting System and Identifying Audit Evidence for Retail Sales Section 7: Planning Materiality Case 7.1 — Anne Aylor, Inc.: Determination of Planning Materiality and Tolerable Misstatement Also see the following cases: Case 5.6 — Sarbox Scooter, Inc.: Scoping and Evaluation Judgments in the Audit of Internal Control over Financial Reporting Case 8.2 — Northwest Bank: Developing Expectations for Analytical Procedures Case 8.3 — Burlingham Bees: Using Analytical Procedures as Substantive Tests Case 12.1 — EyeMax Corporation: Evaluation of Audit Differences Case 12.2 — Auto Parts, Inc.: Considering Materiality When Evaluating Accounting Policies and Footnote Disclosures Section 8: Analytical Procedures Case 8.1 — Laramie Wire Manufacturing: Using Analytical Procedures in Audit Planning Case 8.2 — Northwest Bank: Developing Expectations for Analytical Procedures Case 8.3 — Burlingham Bees: Using Analytical Procedures as Substantive Tests Also see the following cases: Case 1.1 — Ocean Manufacturing, Inc.: The New Client Acceptance Decision Case 2.3 — Flash Technologies, Inc.: Risk Analysis and Resolution of Client Issues Section 9: Auditing Cash and Revenues Case 9.1 — Wally’s Billboard & Sign Supply: The Audit of Cash Case 9.2 — Henrico Retail, Inc.: Understanding the IT Accounting System and Identifying Audit Evidence for Retail Sales Case 9.3 — Longeta Corporation: Auditing Revenue Contracts Section 10: Planning and Performing Audit Procedures in the Revenue and Expenditure Cycles–An Audit Simulation Case 10.1 — Southeast Shoe Distributor, Inc.: Identification of Tests of Controls for the Revenue Cycle (Sales and Cash Receipts Case 10.2 — Southeast Shoe Distributor, Inc.: Identification of Substantive Tests for the Revenue Cycle (Sales and Cash Receipts) Case 10.3 — Southeast Shoe Distributor, Inc.: Selection of Audit Tests and Risk Assessment for the Revenue Cycle (Sales and Cash Receipts) Case 10.4 — Southeast Shoe Distributor, Inc.: Performance of Tests of Transactions for the Expenditure Cycle (Acquisitions and Cash Disbursements) Case 10.5 — Southeast Shoe Distributor, Inc.: Performance of Tests of Balances for the Expenditure Cycle (Acquisitions and Cash Disbursements) Section 11: Developing and Evaluating Audit Documentation Case 11.1 — The Runners Shop: Litigation Support Review of Audit Documentation for Notes Payable Also see the cases included in Sections 9 and 10 Section 12: Completing the Audit, Reporting to Management, and External Reporting Case 12.1 — EyeMax Corporation: Evaluation of Audit Differences Case 12.2 — Auto Parts, Inc.: Considering Materiality When Evaluating Accounting Policies and Footnote Disclosures Case 12.3 — K&K Inc.: Leveraging Audit Findings to Provide Value-Added Insights Case 12.4 — Surfer Dude Duds, Inc.: Considering the Going-Concern Assumption Case 12.5 — Murchison Technologies, Inc.: Evaluating an Attorney’s Response and Identifying the Proper Audit Report |
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Features For undergraduate and graduate Auditing courses. Auditing Cases 3/e provides students hands-on exposure to realistic, focused cases involving all aspects of the audit process. Q. Would you agree that taking an active learning approach to auditing increases student's retention of the auditing process? A. Auditing Cases 3/e provides 40 auditing cases that allow the instructor to focus and deepen students' understanding in each of the major activities performed during an audit. Most of the cases are based on actual companies, and a number address financial reporting fraud. The cases are designed to engage the student's interest through the use of lively narrative and the introduction of emerging issues. The cases were chosen to provide course materials that give students hands-on exposure to realistic, focused, cases involving all aspects of the auditing process.
OTHER POINTS OF DIFFERENTIATION: Q: What do you do in your course to introduce and stress the new auditing standards issued by the Publica Company Accounting Oversight Board? A: Auditing Cases 3/e provides cases with questions that require students to gain a clearer understanding of the specific requirements contained in the Sarbanes-Oxley and the PCAOB. One new case focuses entirely on scoping issues related to testng contols in accordance with the PCAOB's requirements related to the audit of internal control over financial reporting in accordance with Section 404 of the Sarbanes Oxley Act.
Q. What do you do in your course to address the various learning styles of your students? A. Auditing Cases 3/e is designed to help with student learning styles by providing cases that can be used in both in-class and/or out of class. Also, a number of the cases are presented with supporting material for the instructor which will help add an element of "surprise" to the case, creating a vivid and memorable learning experience. Q. Have you been thinking about using cases, but typically resist assigning a case book out of fear that it will create more work for you or because you're not sure how you'd integrate cases into your course? A. The accompanying instructor resource manual to Auditing Cases 3/e clearly illustrates the different instructional approaches available for each case (e.g. examples of cooperative/active learning activities and/or out of class individual or group assignments) and effeciently prepares the instructor for leading individual or group assignments) and effectivley prepares the instructor for leading interactive discussions.
This text is available for personalization in the PHCBR custom database program. Select only the chapters you require or supplement with recommended case studies all under one cover. CLICK HERE to go directly to the PHCBR book-build site or visit our product page for additional information at pearsoncustom.com/business.
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New To This Edition The cases are now organized according to key phases and aspects of an audit, including specific sections on ethics and fraud. Some of the cases are comprehensive; however most are designed to specifically target a particular area (e.g., client acceptance, analytical procedures, materiality, and audit of internal controls over financial reporting). All are carefully designed to enhance interactive learning in the classroom while making preparation by the instructor as quick and simple as possible.
The 3rd edition also includes four new cases:
1. “WorldCom: The Story of a Whistleblower” (Case 3.4) This case focuses on the role of the internal auditors in uncovering the WorldCom fraud and sensitizes students to the pressures a person faces when he or she becomes aware of fraud. The case provides an approach to follow should they become aware of potential unethical or illegal actions and illustrates key characteristics of an effective whistleblower program. The case also provides an overview of the key requirement of the Sarbanes-Oxley Act’s whistle blowing provision and code of ethics.
2. “Sarbox Scooter, Inc.: Scoping and Evaluation Judgments in the Audit of Internal Control over Financial Reporting” (Case 5.6) This case teaches students important concepts and provides hands-on experiences with the planning stage of the audit of internal control over financial reporting and in the evaluation of internal control deficiencies. The case is comprised of two parts that can be assigned independently. In Part A students are introduced to the quantitative and qualitative factors that must be addressed when deciding which locations and accounts will be tested to achieve a high level of assurance with respect to the design and operating effectiveness of controls over financial reporting. In Part B, students are introduced to the considerations and steps used by auditors to evaluate the likelihood and magnitude of possible misstatement for the various levels of internal control deficiency. Students then get hands-on experience evaluating deficiencies using the framework.
3. “Wally’s Billboard & Sign Supply: The Audit of Cash” (Case 9.1) This case gives students hands-on experience with the audit of cash, a task many will face immediately out of college or even on an internship. Students conduct audit procedures, tying numbers from client documents to bank statements and reconciliations. Errors are seeded into the case, and one of the bank confirmations is a smudged, blurry faxed copy. The instructor notes include a copy of the actual forged Bank of America confirmation used by Parmalat to mislead its auditors to bring the importance of care in the evaluation of audit evidence home to students in a vivid and memorable way.
4. “Longeta Corporation: Auditing Revenue Contracts” (Case 9.3) This case exposes students to revenue recognition issues and reminds them of the main GAAP criteria necessary to record revenue in financial statements. Students research GAAP related requirements for revenue recognition in the SEC’s Staff Accounting Bulletin No. 101. They use that research information to evaluate the appropriateness of the company’s accounting treatment for that transaction. Students evaluate the substance of a customer’s “order letter” and a corresponding “side agreement” issued to the customer by the company’s vice president of sales. The case solution reveals that this hypothetical company actually is a disguised real company fraud case investigated by the SEC. The SEC ultimately charged the actual company for fraud, including charges filed against the vice president of sales. This emphasizes the importance for senior management to understand key revenue recognition criteria, including management outside traditional financial reporting responsibilities.
All cases have been updated to reflect the changes in the profession, standards, and the regulatory environment.
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Instructor Supplements Solutions (online only), 3/E Beasley © 2006 | Prentice Hall | On-line Supplement | Available ISBN-10: 0131494929 | ISBN-13: 9780131494923 This manual contains suggested solutions to all auditing cases, which address most major activities performed during an audit, from client acceptance to issuance of an audit report. |