Suchergebnisse

Brodnax is a comprehensive auditing case involving litigation between external auditors and shareholders who lost billions of dollars as a result of a massive fraud. Students are required to discuss several important topics covered in most external auditing courses: the objectives and limitations of an audit, issues involving client acceptance and risk to the auditing firm, the rendering of appropriate audit opinions, and the auditors' responsibilities for the detection of fraud. The objective of the case is to provide students with an opportunity to see the importance for practicing auditors to consider the legal ramifications of performing their jobs in light of the litigious environment in which auditors work.

ABSTRACTResearch suggests that audit team members, especially staff, may lack the necessary training to be able to identify fraud risks and to develop appropriate responses to identified fraud risks (e.g., Pearson and Singleton 2008; Knapp and Knapp 2001; Braun 2000; Zimbelman 1997). This lack of training may be particularly acute with respect to the perpetration of fraud in automated environments (Filipek 2007). The case studies are designed to improve undergraduate auditing, accounting information systems, and forensic accounting students' abilities to recognize and respond to indicators of fraud and general information technology (IT) control weaknesses.

We present a case that focuses on the allocation of costs between men's and women's sports. At issue is whether large portions of indirect costs can or should be allocated to women's sports to keep a university in compliance with Title IX, the federal law promoting gender equity in collegiate athletics. Students are instructed to use an ethical decision-making model when addressing the cost allocation issue and deciding whether it is ethical for accountants to "play" with numbers to achieve certain objectives. The cost allocation alternatives generated by students are appropriate for managerial accounting courses at both the undergraduate and graduate levels. The case also helps students to develop a systematic approach when solving ethical dilemmas. Students are required to identify potential stakeholders of the decision to reallocate costs and to assess the interests of the different stakeholders. After developing potential alternatives and determining how each decision could affect the stakeholders, students must make a cost allocation decision that is consistent with the fundamental qualities of the accounting profession—honesty, competence, objectivity, and integrity. In addition to gaining exposure to cost allocation methods and ethical decision making, students are exposed to several core educational competencies identified in the AICPA Core Competency Framework (AICPA 1999).

A large part of an auditor's work includes evaluation of an organization's compliance with laws and regulatory requirements, internal policies and procedures, and other rules that an entity must follow. The objective of this case is to assist you in understanding both the importance of compliance auditing, and the need for auditors to exercise professional judgment when interpretation of rules is required. The case involves a hypothetical university's adherence to NCAA rules and regulations. The first part of the case provides exposure to various resources needed to develop an understanding of both intercollegiate athletics and compliance with rules established by its governing body, the NCAA. The second part requires you to use judgment in interpreting different scenarios that may or may not indicate compliance violations.

In this case, you will examine corporate governance in an international context and gain a thorough understanding of the ramifications of the Sarbanes-Oxley Act of 2002 (SOX), as you observe very different reactions to the provisions of SOX by two Mexican companies, both of whom were trading on the NYSE at the time SOX was enacted. One company, TV Azteca, withdrew from the exchange on the grounds that U.S. regulations ignore Mexico's legal framework and corporate culture. You are required to contrast TV Azteca's response with the actions of another Mexican company, Cemex, which embraces the concepts of SOX. Cemex views compliance with SOX as an integral component of its corporate governance and sees it as necessary for continued access to international capital markets.