This case, developed in collaboration with KPMG professionals, has been designed to give instructors an opportunity to meaningfully integrate two cutting-edge analytical tools, the Caseware IDEA data analysis software and the Tableau data visualization software into the financial statement auditing classroom. Because greater understanding of data and analytics is commonly identified by experienced audit professionals as an area of importance for new staff auditors, many universities are pushing their instructors to implement data analytic tools in their classes. To help instructors accomplish this objective, this case has been designed to provide an approach to implementing IDEA and Tableau into the classroom in a highly efficient manner.
The Urgent Medical Devices case is loosely based on an actual SEC Accounting and Auditing Enforcement Release with a complete set of data that has been created to closely match the scenario. The data includes six separate databases (i.e., sales orders, products, customer master, invoices, sales territories, and shipments) which allows for a robust data analysis experience for students. The case is focused on the revenue cycle, as this is a presumed fraud risk area for all audits. Importantly, by featuring the revenue cycle, the case provides an ideal context for students to adopt a professionally skeptical mindset and apply their critical thinking skills when completing the case. The materials include a complete set of teaching notes and instructional videos to support instructors seeking to integrate data analytics into the classroom.
The primary target audience for these cases is the financial statement auditing class, at either the undergraduate or graduate level.
Learning Objectives
The cases can be used to help auditing students always remain skeptical about the possibility of fraud. After completing the cases, students should be able to:
- To understand the fraud risks associated with revenue recognition and its impact on the testing of the revenue and accounts receivable cycle.
- To understand the importance of determining that a population of data is complete and accurate prior to its use in audit testing, including understanding how to reconcile the population to the underlying books and records of the audit client.
- To learn how to interpret commonly used data visualizations and reach audit conclusions based on the issues, objectives and alternatives that surface given the observed facts and circumstances.
- To understand how to utilize commonly used data and analytics software tools (i.e., IDEA and Tableau) within a realistic audit context.
- To develop critical thinking skills around the identification of exceptions and risk factors in client provided data.
- To recognize the importance of reaching an overall conclusion for each relevant assertion in accordance with applicable professional standards based on the evidential matter considered.
