SOLUTION MANUAL
Auditing Cases: An Interactive
Learning Approach
,Auditing
Cases
Instructor Resource Manual
SEVENTH EDITION
Mark S. Beasley Frank A. Buckless
Steven M. Glover Douglas F. Prawitt
New York, Ny
,Vice President, Business, Economics, And Uk Courseware: Donna Battista Manager, Learning Tools: Brian Surette
Director Of Portfolio Management: Adrienne D’ambrosio Content Developer, Learning Tools: Sarah Peterson
Director, Courseware Portfolio Management: Ashley Dodge Managing Producer, Digital Studio And Glp, Media Production And Development:
Senior Sponsoring Editor: Neeraj Bhalla Ashley Santora
Editorial Assistant: Elisa Marks Managing Producer, Digital Studio: Diane Lombardo
Vice President, Product Marketing: Roxanne Mccarley Digital Studio Producer: Regina Dasilva
Senior Product Marketer: Tricia Murphy Digital Studio Producer: Alana Coles
Product Marketing Assistant: Marianela Silvestri Digital Content Team Lead: Noel Lotz
Manager Of Field Marketing, Business Publishing: Adam Goldstein Digital Content Project Lead: Martha Lachance
Field Marketing Manager: Nayke Popovich Project Manager: Liza Marie Borja, Spi Global
Vice President, Production And Digital Studio, Arts And Business: Etain O'dea Interior Design: Jonathan Liljegren
Director Of Production, Business: Jeff Holcomb Interior Cover Art: Petrovic Igor/Shutterstock
Managing Producer, Business: Melissa Feimer
Content Producer: Sugandh Juneja
Operations Specialist: Carol Melville
Design Lead: Kathryn Foot
,Copyright © 2019, 2015, 2012 By Pearson Education, Inc. Or Its Affiliates. All Rights Reserved. This
Publication Is Protected By Copyright, And Permission Should Be Obtained From The Publisher Prior To
Any Prohibited Reproduction, Storage In A Retrieval System, Or Transmission In Any Form Or By Any Means,
Electronic, Mechanical, Photocopying, Recording, Or Otherwise. For Information Regarding Permissions,
Request Forms, And The Appropriate Contacts Within The Pearson Education Global Rights And
Permissions Department, Please Visit Www.Pearsoned.Com/Permissions/
Acknowledgments Of Third-Party Content Appear On The Appropriate Page Within The Text.
Pearson And Always Learning Are Exclusive Trademarks Owned By Pearson Education, Inc. Or Its Affiliates In The
U.S. And/Or Other Countries.
Unless Otherwise Indicated Herein, Any Third-Party Trademarks, Logos, Or Icons That May Appear In This
Work Are The Property Of Their Respective Owners, And Any References To Third-Party Trademarks, Logos,
Icons, Or Other Trade Dress Are For Demonstrative Or Descriptive Purposes Only. Such References Are Not
Intended To Imply Any Sponsorship, Endorsement, Authorization, Or Promotion Of Pearson‘s Products By The
Owners Of Such Marks, Or Any Relationship Between The Owner And Pearson Education, Inc., Or Its Affiliates,
Authors, Licensees, Or Distributors.
Isbn 10: 0-13-442270-8
Isbn 13: 978-0-13-442270-1
Auditing Cases: An Interactive Learning Approach Provides Exposure To Real-World Audit
Techniques And Hands-On Learning For Students In Both Undergraduate And Graduate Auditing Courses.
This Seventh Edition Continues Our Tradition Of Providing A Rich Learning Experience For Students
That Challenges Them To Apply Knowledge Learned In The Classroom And From Traditional Auditing
Textbooks So They Can Develop Skills To Complete Tasks They Will Be Asked To Do Once They Enter
The Accounting And Auditing Profession.
The Seventh Edition Continues To Feature A Variety Of Cases That Address Different Aspects Of The Audit.
Some Are Based On Real Companies, While Others Are Disguised As ―Hypothetical Companies‖ In Order To
, Provide A ―Surprise Element‖ Once They Are Completed. Additional Cases Include Examples Of Client System
Documentation And Audit Workpapers That Students Prepare And Evaluate As If They Are On A Current
Audit Team.
Wells Fargo
Assessing The Impact Of Ethical Culture
This Case Features The Alleged Inappropriate Sales Culture At Wells Fargo Bank
That Ultimately Led To The Ceo‘s 2016 Testimony In Front Of The U.S.
Senate Banking Committee And His Subsequent Resignation. The Bank‘s Audit
Firm Was Challenged To Defend Its Work By Four U.S. Senators, One Of Whom
Included Bernie Sanders, A Recent Candidate For U.S. President.
Koss, Inc.
The Sounds Of A High-Fidelity Fraud
This Case Gives Students A ―Bird's-Eye‖ View Of The 9th-Largest Embezzlement Fraud In
U.S. History, Which Took Place At The Koss Corporation, Headquartered In
Wisconsin.The Case Vividly Illustrates What Can Happen When Internal Control Over
Financial Reporting (Icfr) Is Lax At A Public Company. The Case Will Be Particularly
Interesting For Students Because Much Of The Story Of This Massive Defalcation
Fraud Is Introduced Through The Words Of The Company‘s Ceo And The Individual
Who Stole $34 Million From The Company, Adapted From Deposition Statements. The
Case Brings To Life The Importance Of Effective Icfr, With An Emphasis On The
Control Environment, And Introduces Students To The Role That Accountants Can
Play As Expert Witnesses In Court Cases.
Oilfields-R-Us, Inc.
Evaluation Of Management Review Controls
This Case Introduces Students To Management Review Controls (Mrcs), An
Increasingly Important Topic In Practice For Both Management And Auditors. In A
Mrc, Members Of Management Review Key Information And Evaluate
Reasonableness By Comparing It To Expected Value, Such As Budget-To-Actual
Comparisons And Review Of Accounting Estimates. This Case Helps Students
Appreciate The Importance Of The Effective Design And Execution Of Mrcs, And It
Highlights Some Of The Challenges Of Evaluating Their Effectiveness In Audits Of
Internal Control Over Financial Reporting.
Iii
Copyright © 2019 Pearson Education, Inc. Verifiedbrainbooster
,Town And Country Hardware
Evaluation Of Tests Of Controls With Automated
Component For The Expenditure Cycle (Purchases)
This Case Introduces Students To Internal Controls With An Automated Component
That Are An Increasingly Important Topic In The Practice For Both Management
And Auditors. This Case Helps Students Appreciate The Challenges Of Evaluating
The Effectiveness Of Internal Controls Over Financial Reporting With An
Automated Component.
Reflects Recent Auditing Standards
This Edition Includes Updates That Reflect New Auditing Standards Issued By The Aicpa‘s Auditing
Standards Board (Up Through Sas No. 132, The Auditor‟s Consideration Of An Entity‟s Ability To Continue As A Going
Concern) And The Pcaob‘s Auditing Standards (Up Through As 3101, The Auditor‟s Report On An Audit Of Financial
Statements When The Auditor Expresses An Unqualified Opinion). When Relevant, Questions Expose Students To
New Guidance Contained In Recently Issued Auditing Standards.
Updated And Re-Ordered Materials And Questions
Many Of The Case Questions Have Been Restructured To Change The Nature Of The Topics Addressed And
To Expose Students To Different Issues From Those Examined In Prior Editions. Many Cases Also Have
Reordered Questions. Dates In Hypothetical Cases Have Been Set In Calendar Year 2018 With Audit
Procedures Performed On The 2017 Fiscal Year Information And/Or Interim Procedures Performed On
The 2018 Fiscal Year Information. When Appropriate, We Have Changed Underlying Data In Some Of
The Hypothetical Cases So That The Cases Differ From Prior Editions. All Of These Changes Reduce The
Potential Benefit Of Students Seeking Our Solutions From Prior Editions Of The Casebook. Further,
Students Who Inappropriately Access And Use Solutions To Prior Editions Are More Likely To Be
Detected By The Instructor.
Auditing Educators Continue To Look For Opportunities To Increase Their Emphasis On The Development Of
Students‘ Professional Judgment, Critical Thinking, Communication, And Interpersonal Relationships Skills.
Development Of These Skills Requires A Shift From Passive Instruction To Active Involvement Of Students
In The Learning Process. Unfortunately, Current Course Materials Provided By Many Publishers Are Not
Readily Adaptable To This Kind Of Active Learning Environment, Or They Do Not Provide Materials That
Address Each Major Part Of The Audit Process. The Purpose Of This Casebook Is To Give Students Hands-
On Exposure To Realistic Auditing Situations Focusing Specifically On Each Aspect Of The Audit Process.
Over 50 Cases Spanning The Audit Processes
This Casebook Contains A Collection Of 50 Auditing Cases Plus A Separate Learning Module About
Professional Judgment That Allows The Instructor To Focus And Deepen Students‘ Understanding In Each
Of The Major Activities Performed During The Conduct Of An Audit. These Cases Expose Students To
Aspects Of The Audit Spanning From Client Acceptance To Issuance Of An Audit Report, With A Particular
Focus On How Professional Judgment Is Applied Throughout The Audit. Each Case Is Primarily Assigned To
One Of 12 Identified Aspects Of An Audit; However, A Number Of Cases Address More Than One Topic. As
A Result, Cases Are Cross-Referenced In The Table Of Contents So That Instructors Can Easily Pinpoint How
A Particular Case Might Be Useful To Address Different Audit Topics. The Following Table Of Contents
Overview Provides The Number Of Cases For Each Of The 12 Topics.
,Iv
Copyright ©V201
e 9r Piefarise
ond
edb
ucration
a i,Ninb
c. Ooster
,Table Of Contents Overview
Primary Cross-Referenced Bonus Online
Section / Audit Topic
Cases Cases Cases*
1 Client Acceptance 1
2 Understanding The Client’s Business And
3 1
Assessing Risks
3 Professional And Ethical Issues 6
4 Accounting Fraud And Auditor Legal Liability 8 1
5 Internal Control Over Financial Reporting 8 2
6 The Impact Of Information Technology 1 5 2
7 Planning Materiality 1 4
8 Analytical Procedures 3 1
9 Auditing Cash, Fair Value, And Revenues 7 3
10 Planning And Performing Audit Procedures In
5
The Revenue And Expenditure Cycles
11 Developing And Evaluating Audit
1 2
Documentation
12 Completing The Audit, Reporting To
6
Management, And External Reporting
Total Cases 50 18 3
*In Addition To The 50 Cases Included In The Book, Three Additional Cases From Prior Editions Can Be Accessed Via The Casebook Website
(Www.Pearsonhighered.Com/Beasley).Thus, There Are 53 Different Case Options Available For Use!
Module On Professional Judgment
The Casebook Includes A Learning Module
ENVIRONMENT
On Professional Judgment That Exposes
Students To A Professional Judgment
Framework And Outlines A Framework Of Reflect on Previous
Experience
Good Judgment As Well As A Number
Of Judgment Tendencies And Traps That
5 1
Can Introduce Bias Into The Judgment
Process. Because Professional
Judgments Are Required Throughout The
Entire Audit Process, From Client 4 2
Acceptance To Report Issuance, We 3
Include An Introduction To Professional
Judgment As An Upfront Learning
Module Rather Than As An Individual
Case. We Encourage Students To
Complete This Learning Module Early In
Reprinted From The Kpmg Professional Judgment Framework: Elevating Professional Judgment In Auditing With
Their Auditing Course To Expose Them To Permission From Kpmg Llp. © 2013 Kpmg Llp, A Delaware Limited Liability Partnership And The U.S. Member
The Fundamentals Of Professional Firm Of The Kpmg Network Of Independent Member Firms Affiliated With Kpmg International Cooperative
(―Kpmg International‖), A Swiss Entity. All Rights Reserved. For Additional News And Information, Please
Judgment, Which They Can Use As They Access Kpmg's Global Web Site On The Internet At Www.Kpmguniversityconnection.Com.
Complete The Required Professional
Judgment Questions In Many Of The
Cases To This Edition. The Professional
Judgment Questions Are Separately V
Highlighted In Gray- Shaded Sections Of
The Requirements Section.
,Copyright © 2019 Pearson Education, Inc. Verifiedbrainbooster
, In-Class And Out-Of-Class Assignments
FLIPPED While All Of The Cases Can Be Assigned For Completion As An
Outside- Of-Class Assignment, Several Of The Cases Are
Designed So That They Can Be Easily Used As An In-Class
Learning Opportunity. The Instructor‘s Resource Manual
Provides Several Ideas Of How Many Of The Cases Can Be Easily
Incorporated As An In-Class Activity, Which Should Be Especially
Helpful For Instructors Who Have ―Flipped‖ Their Classes.
Real-World Application
Each Case Presents A Number Of Audit Related Issues And Decisions That Help Students Apply Their Audit
Knowledge And Skills To Real-World Scenarios. A Number Of The Cases Are Based On Actual
Situations Involving Real Companies. Others Are Hypothetical Cases That Disguise The Innocent.
For Students To Succeed In A Rapidly Changing Accounting And Auditing Profession, They Need To Be
Skilled At Thinking Critically And Analytically, While Remaining Open And Flexible To Life-Long
Learning And Development. Auditing Cases: An Interactive Learning Approach Provides An Effective Platform
To Help Students Build A Strong Toolkit Of Skills That Will Increase Their Career Success. Here Are Some Of
The Ways This Casebook Helps Strengthen Their Abilities For Careers In The Accounting And Auditing
Profession.
Critical Thinking
All Of The Cases Present Realistic Issues And Challenges That Auditors Face Every
Day In The Engagements They Perform. Because Of That, Each Case Presents
Scenarios That Require Students To Think Critically About Identifying The Issue At
Hand And Then Determining How To Respond In A Way That Would Be Appropriate
In An Audit Engagement Setting. Many Of The Cases Present Dilemmas That
Highlight The Realities Of The Complexities Students Will Face When In Their
Professional Careers. Completion Of These Cases Will Help Students Develop And
Mature Their Critical Thinking And Analytical Skills.
Hands-On Application
All Cases Engage Students In Applying Their Knowledge And Skills In A Hands-On
Learning Environment. For Some Cases, Students Review Client Generated
Documentation, Complete Actual Audit Program Procedures, And Prepare And
Evaluate Audit Working Papers. Other Cases Require Students To Conduct Internet
Based Research Similar To What Might Be Required In An Audit To Locate Guidance
In Professional Standards Or To Access Relevant Financial Statement Filings With
The U.S. Securities And Exchange Commission.
Communication Skills
A Number Of The Cases Require Students To Prepare Written Responses In
Memorandum Or Report Format. The Instructor‘s Resource Manual Contains A
Number Of Different Ideas For Structuring Assignments To Have Students Develop
Their Written Communication Skills.
Team-Based And Individual Assignments
All Of The Cases Are Designed So That Students Can Complete Them Either In
Teams Or Individually. The Instructor‘s Resource Manual Contains A Number Of
Different Suggestions For Assigning The Cases As Group Or Individual Assignments.
Auditing Cases: An Interactive
Learning Approach
,Auditing
Cases
Instructor Resource Manual
SEVENTH EDITION
Mark S. Beasley Frank A. Buckless
Steven M. Glover Douglas F. Prawitt
New York, Ny
,Vice President, Business, Economics, And Uk Courseware: Donna Battista Manager, Learning Tools: Brian Surette
Director Of Portfolio Management: Adrienne D’ambrosio Content Developer, Learning Tools: Sarah Peterson
Director, Courseware Portfolio Management: Ashley Dodge Managing Producer, Digital Studio And Glp, Media Production And Development:
Senior Sponsoring Editor: Neeraj Bhalla Ashley Santora
Editorial Assistant: Elisa Marks Managing Producer, Digital Studio: Diane Lombardo
Vice President, Product Marketing: Roxanne Mccarley Digital Studio Producer: Regina Dasilva
Senior Product Marketer: Tricia Murphy Digital Studio Producer: Alana Coles
Product Marketing Assistant: Marianela Silvestri Digital Content Team Lead: Noel Lotz
Manager Of Field Marketing, Business Publishing: Adam Goldstein Digital Content Project Lead: Martha Lachance
Field Marketing Manager: Nayke Popovich Project Manager: Liza Marie Borja, Spi Global
Vice President, Production And Digital Studio, Arts And Business: Etain O'dea Interior Design: Jonathan Liljegren
Director Of Production, Business: Jeff Holcomb Interior Cover Art: Petrovic Igor/Shutterstock
Managing Producer, Business: Melissa Feimer
Content Producer: Sugandh Juneja
Operations Specialist: Carol Melville
Design Lead: Kathryn Foot
,Copyright © 2019, 2015, 2012 By Pearson Education, Inc. Or Its Affiliates. All Rights Reserved. This
Publication Is Protected By Copyright, And Permission Should Be Obtained From The Publisher Prior To
Any Prohibited Reproduction, Storage In A Retrieval System, Or Transmission In Any Form Or By Any Means,
Electronic, Mechanical, Photocopying, Recording, Or Otherwise. For Information Regarding Permissions,
Request Forms, And The Appropriate Contacts Within The Pearson Education Global Rights And
Permissions Department, Please Visit Www.Pearsoned.Com/Permissions/
Acknowledgments Of Third-Party Content Appear On The Appropriate Page Within The Text.
Pearson And Always Learning Are Exclusive Trademarks Owned By Pearson Education, Inc. Or Its Affiliates In The
U.S. And/Or Other Countries.
Unless Otherwise Indicated Herein, Any Third-Party Trademarks, Logos, Or Icons That May Appear In This
Work Are The Property Of Their Respective Owners, And Any References To Third-Party Trademarks, Logos,
Icons, Or Other Trade Dress Are For Demonstrative Or Descriptive Purposes Only. Such References Are Not
Intended To Imply Any Sponsorship, Endorsement, Authorization, Or Promotion Of Pearson‘s Products By The
Owners Of Such Marks, Or Any Relationship Between The Owner And Pearson Education, Inc., Or Its Affiliates,
Authors, Licensees, Or Distributors.
Isbn 10: 0-13-442270-8
Isbn 13: 978-0-13-442270-1
Auditing Cases: An Interactive Learning Approach Provides Exposure To Real-World Audit
Techniques And Hands-On Learning For Students In Both Undergraduate And Graduate Auditing Courses.
This Seventh Edition Continues Our Tradition Of Providing A Rich Learning Experience For Students
That Challenges Them To Apply Knowledge Learned In The Classroom And From Traditional Auditing
Textbooks So They Can Develop Skills To Complete Tasks They Will Be Asked To Do Once They Enter
The Accounting And Auditing Profession.
The Seventh Edition Continues To Feature A Variety Of Cases That Address Different Aspects Of The Audit.
Some Are Based On Real Companies, While Others Are Disguised As ―Hypothetical Companies‖ In Order To
, Provide A ―Surprise Element‖ Once They Are Completed. Additional Cases Include Examples Of Client System
Documentation And Audit Workpapers That Students Prepare And Evaluate As If They Are On A Current
Audit Team.
Wells Fargo
Assessing The Impact Of Ethical Culture
This Case Features The Alleged Inappropriate Sales Culture At Wells Fargo Bank
That Ultimately Led To The Ceo‘s 2016 Testimony In Front Of The U.S.
Senate Banking Committee And His Subsequent Resignation. The Bank‘s Audit
Firm Was Challenged To Defend Its Work By Four U.S. Senators, One Of Whom
Included Bernie Sanders, A Recent Candidate For U.S. President.
Koss, Inc.
The Sounds Of A High-Fidelity Fraud
This Case Gives Students A ―Bird's-Eye‖ View Of The 9th-Largest Embezzlement Fraud In
U.S. History, Which Took Place At The Koss Corporation, Headquartered In
Wisconsin.The Case Vividly Illustrates What Can Happen When Internal Control Over
Financial Reporting (Icfr) Is Lax At A Public Company. The Case Will Be Particularly
Interesting For Students Because Much Of The Story Of This Massive Defalcation
Fraud Is Introduced Through The Words Of The Company‘s Ceo And The Individual
Who Stole $34 Million From The Company, Adapted From Deposition Statements. The
Case Brings To Life The Importance Of Effective Icfr, With An Emphasis On The
Control Environment, And Introduces Students To The Role That Accountants Can
Play As Expert Witnesses In Court Cases.
Oilfields-R-Us, Inc.
Evaluation Of Management Review Controls
This Case Introduces Students To Management Review Controls (Mrcs), An
Increasingly Important Topic In Practice For Both Management And Auditors. In A
Mrc, Members Of Management Review Key Information And Evaluate
Reasonableness By Comparing It To Expected Value, Such As Budget-To-Actual
Comparisons And Review Of Accounting Estimates. This Case Helps Students
Appreciate The Importance Of The Effective Design And Execution Of Mrcs, And It
Highlights Some Of The Challenges Of Evaluating Their Effectiveness In Audits Of
Internal Control Over Financial Reporting.
Iii
Copyright © 2019 Pearson Education, Inc. Verifiedbrainbooster
,Town And Country Hardware
Evaluation Of Tests Of Controls With Automated
Component For The Expenditure Cycle (Purchases)
This Case Introduces Students To Internal Controls With An Automated Component
That Are An Increasingly Important Topic In The Practice For Both Management
And Auditors. This Case Helps Students Appreciate The Challenges Of Evaluating
The Effectiveness Of Internal Controls Over Financial Reporting With An
Automated Component.
Reflects Recent Auditing Standards
This Edition Includes Updates That Reflect New Auditing Standards Issued By The Aicpa‘s Auditing
Standards Board (Up Through Sas No. 132, The Auditor‟s Consideration Of An Entity‟s Ability To Continue As A Going
Concern) And The Pcaob‘s Auditing Standards (Up Through As 3101, The Auditor‟s Report On An Audit Of Financial
Statements When The Auditor Expresses An Unqualified Opinion). When Relevant, Questions Expose Students To
New Guidance Contained In Recently Issued Auditing Standards.
Updated And Re-Ordered Materials And Questions
Many Of The Case Questions Have Been Restructured To Change The Nature Of The Topics Addressed And
To Expose Students To Different Issues From Those Examined In Prior Editions. Many Cases Also Have
Reordered Questions. Dates In Hypothetical Cases Have Been Set In Calendar Year 2018 With Audit
Procedures Performed On The 2017 Fiscal Year Information And/Or Interim Procedures Performed On
The 2018 Fiscal Year Information. When Appropriate, We Have Changed Underlying Data In Some Of
The Hypothetical Cases So That The Cases Differ From Prior Editions. All Of These Changes Reduce The
Potential Benefit Of Students Seeking Our Solutions From Prior Editions Of The Casebook. Further,
Students Who Inappropriately Access And Use Solutions To Prior Editions Are More Likely To Be
Detected By The Instructor.
Auditing Educators Continue To Look For Opportunities To Increase Their Emphasis On The Development Of
Students‘ Professional Judgment, Critical Thinking, Communication, And Interpersonal Relationships Skills.
Development Of These Skills Requires A Shift From Passive Instruction To Active Involvement Of Students
In The Learning Process. Unfortunately, Current Course Materials Provided By Many Publishers Are Not
Readily Adaptable To This Kind Of Active Learning Environment, Or They Do Not Provide Materials That
Address Each Major Part Of The Audit Process. The Purpose Of This Casebook Is To Give Students Hands-
On Exposure To Realistic Auditing Situations Focusing Specifically On Each Aspect Of The Audit Process.
Over 50 Cases Spanning The Audit Processes
This Casebook Contains A Collection Of 50 Auditing Cases Plus A Separate Learning Module About
Professional Judgment That Allows The Instructor To Focus And Deepen Students‘ Understanding In Each
Of The Major Activities Performed During The Conduct Of An Audit. These Cases Expose Students To
Aspects Of The Audit Spanning From Client Acceptance To Issuance Of An Audit Report, With A Particular
Focus On How Professional Judgment Is Applied Throughout The Audit. Each Case Is Primarily Assigned To
One Of 12 Identified Aspects Of An Audit; However, A Number Of Cases Address More Than One Topic. As
A Result, Cases Are Cross-Referenced In The Table Of Contents So That Instructors Can Easily Pinpoint How
A Particular Case Might Be Useful To Address Different Audit Topics. The Following Table Of Contents
Overview Provides The Number Of Cases For Each Of The 12 Topics.
,Iv
Copyright ©V201
e 9r Piefarise
ond
edb
ucration
a i,Ninb
c. Ooster
,Table Of Contents Overview
Primary Cross-Referenced Bonus Online
Section / Audit Topic
Cases Cases Cases*
1 Client Acceptance 1
2 Understanding The Client’s Business And
3 1
Assessing Risks
3 Professional And Ethical Issues 6
4 Accounting Fraud And Auditor Legal Liability 8 1
5 Internal Control Over Financial Reporting 8 2
6 The Impact Of Information Technology 1 5 2
7 Planning Materiality 1 4
8 Analytical Procedures 3 1
9 Auditing Cash, Fair Value, And Revenues 7 3
10 Planning And Performing Audit Procedures In
5
The Revenue And Expenditure Cycles
11 Developing And Evaluating Audit
1 2
Documentation
12 Completing The Audit, Reporting To
6
Management, And External Reporting
Total Cases 50 18 3
*In Addition To The 50 Cases Included In The Book, Three Additional Cases From Prior Editions Can Be Accessed Via The Casebook Website
(Www.Pearsonhighered.Com/Beasley).Thus, There Are 53 Different Case Options Available For Use!
Module On Professional Judgment
The Casebook Includes A Learning Module
ENVIRONMENT
On Professional Judgment That Exposes
Students To A Professional Judgment
Framework And Outlines A Framework Of Reflect on Previous
Experience
Good Judgment As Well As A Number
Of Judgment Tendencies And Traps That
5 1
Can Introduce Bias Into The Judgment
Process. Because Professional
Judgments Are Required Throughout The
Entire Audit Process, From Client 4 2
Acceptance To Report Issuance, We 3
Include An Introduction To Professional
Judgment As An Upfront Learning
Module Rather Than As An Individual
Case. We Encourage Students To
Complete This Learning Module Early In
Reprinted From The Kpmg Professional Judgment Framework: Elevating Professional Judgment In Auditing With
Their Auditing Course To Expose Them To Permission From Kpmg Llp. © 2013 Kpmg Llp, A Delaware Limited Liability Partnership And The U.S. Member
The Fundamentals Of Professional Firm Of The Kpmg Network Of Independent Member Firms Affiliated With Kpmg International Cooperative
(―Kpmg International‖), A Swiss Entity. All Rights Reserved. For Additional News And Information, Please
Judgment, Which They Can Use As They Access Kpmg's Global Web Site On The Internet At Www.Kpmguniversityconnection.Com.
Complete The Required Professional
Judgment Questions In Many Of The
Cases To This Edition. The Professional
Judgment Questions Are Separately V
Highlighted In Gray- Shaded Sections Of
The Requirements Section.
,Copyright © 2019 Pearson Education, Inc. Verifiedbrainbooster
, In-Class And Out-Of-Class Assignments
FLIPPED While All Of The Cases Can Be Assigned For Completion As An
Outside- Of-Class Assignment, Several Of The Cases Are
Designed So That They Can Be Easily Used As An In-Class
Learning Opportunity. The Instructor‘s Resource Manual
Provides Several Ideas Of How Many Of The Cases Can Be Easily
Incorporated As An In-Class Activity, Which Should Be Especially
Helpful For Instructors Who Have ―Flipped‖ Their Classes.
Real-World Application
Each Case Presents A Number Of Audit Related Issues And Decisions That Help Students Apply Their Audit
Knowledge And Skills To Real-World Scenarios. A Number Of The Cases Are Based On Actual
Situations Involving Real Companies. Others Are Hypothetical Cases That Disguise The Innocent.
For Students To Succeed In A Rapidly Changing Accounting And Auditing Profession, They Need To Be
Skilled At Thinking Critically And Analytically, While Remaining Open And Flexible To Life-Long
Learning And Development. Auditing Cases: An Interactive Learning Approach Provides An Effective Platform
To Help Students Build A Strong Toolkit Of Skills That Will Increase Their Career Success. Here Are Some Of
The Ways This Casebook Helps Strengthen Their Abilities For Careers In The Accounting And Auditing
Profession.
Critical Thinking
All Of The Cases Present Realistic Issues And Challenges That Auditors Face Every
Day In The Engagements They Perform. Because Of That, Each Case Presents
Scenarios That Require Students To Think Critically About Identifying The Issue At
Hand And Then Determining How To Respond In A Way That Would Be Appropriate
In An Audit Engagement Setting. Many Of The Cases Present Dilemmas That
Highlight The Realities Of The Complexities Students Will Face When In Their
Professional Careers. Completion Of These Cases Will Help Students Develop And
Mature Their Critical Thinking And Analytical Skills.
Hands-On Application
All Cases Engage Students In Applying Their Knowledge And Skills In A Hands-On
Learning Environment. For Some Cases, Students Review Client Generated
Documentation, Complete Actual Audit Program Procedures, And Prepare And
Evaluate Audit Working Papers. Other Cases Require Students To Conduct Internet
Based Research Similar To What Might Be Required In An Audit To Locate Guidance
In Professional Standards Or To Access Relevant Financial Statement Filings With
The U.S. Securities And Exchange Commission.
Communication Skills
A Number Of The Cases Require Students To Prepare Written Responses In
Memorandum Or Report Format. The Instructor‘s Resource Manual Contains A
Number Of Different Ideas For Structuring Assignments To Have Students Develop
Their Written Communication Skills.
Team-Based And Individual Assignments
All Of The Cases Are Designed So That Students Can Complete Them Either In
Teams Or Individually. The Instructor‘s Resource Manual Contains A Number Of
Different Suggestions For Assigning The Cases As Group Or Individual Assignments.
