Sprandel, Inc.: Electronic Workpapers, Audit Documentation, and Closing Review Notes in the Audit of Accounts Receivable

Abstract

Workpaper review is an important quality control mechanism in the audit environment. However, appropriately responding to review notes is not commonly taught. The Sprandel, Inc. case provides a hands-on learning experience for students to connect textbook audit knowledge through use of an activity regularly performed in audit practice: closing review notes. Through the process of closing review notes, students practice auditing accounts receivable, including performing audit procedures related to internal controls and substantive audit work. The case also provides students with an opportunity to use Excel to complete electronic workpapers and to document their audit procedures. Further, the case requires students to use critical-thinking skills and apply professional skepticism when performing audit procedures, evaluating audit evidence, and making decisions. Finally, this case helps students understand how auditing standards apply to the procedures performed during an audit of accounts receivable. The case is designed for auditing courses at the undergraduate or graduate level.

Client Data Files and Auditor Skepticism: How Do 'Dirty' Files Influence Auditors’ Skeptical Judgments and Actions?

“…Forty-seven participants consented to participate, but one could not be calibrated due to heavy eye-makeup.6 Small cell sizes are common in eye-tracking studies (Dalla Via et al 2018; Meißner and Oll 2019). Our average cell size is consistent with the minimum recommendations suggested byHolmqvist et al (2011).7 Participants' trait-level skepticism was not significantly different between conditions and not significant when included as a covariate in our hypothesis tests.8 The materials were adapted from a teaching case byAndiola et al (2018).…”

Redesigning an Auditing Course to Develop Technology Competence

“…Before the participants were exposed to the intervention, a test was administered to both groups. The test instrument was adapted from the case study by Andiola et al [32] that focusses on auditing accounts receivable. The case asked students to utilize to complete electronic audit documentation, also known as audit workpapers.…”

“…These initiatives, however, focus on teaching students to learn Excel in Accounting Information Systems and focus less on how Excel can be adopted to facilitate the work of auditors. Some useful examples in the literature [e.g., 29,30,31,32] embrace Excel in the development of auditing instructional cases and indicate that Excel can be integrated within the auditing topic through the use of case-based learning. While case-based learning is a useful method to bring real world auditing to students, it is however only one method within the whole course design.…”

“…We used weekly case studies feedback as a formative assessment. Whereas for the summative assessment we used a prepost test case study adapted from Andiola et al [32]. The alignment between the main components of the system is depicted in Table 1.…”

Assessing the Relevance of Undergraduate Auditing Education: A Scoping Review

“…Case studies are also potential to integrate various competencies at the same time. Case studies auditing from Andiola, Lambert, and Lynch (2018) and Peaden and Stephens (2013) are the examples. The two case studies, if applied, can develop student competencies in auditing, technology, communication, thinking skills (judgment and skepticism) and teamwork.…”