Due Diligence on Fast-Fashion Inventory through Data Querying

In this simulation of a merger and acquisition due diligence engagement for a fast‐fashion retailer's inventory account, learners develop IT audit skills by (1) preparing a business process representation, (2) identifying audit objectives for testing management assertions about inventory, (3) designing audit procedures to implement audit objectives, (4) querying data files to execute audit procedures, and (5) communicating results. The simulation develops skills for analyzing data to verify the internal consistency of accounting records and to detect conditions warranting further investigation. The simulation, workable with a database query tool or audit software, is appropriate for students with querying proficiency and audit procedure design capability. The simulation helps bridge the understanding gap between IT auditors and general auditors by enabling novice auditors to experience an auditing situation in which they apply IT audit tools to verify internal consistency of data and detect unusual condit...

[1]  Ed O'Donnell,et al.  The Influence of Business‐Process‐Focused Audit Support Software on Analytical Procedures Judgments , 2003 .

[2]  W. Kintsch,et al.  Strategies of discourse comprehension , 1986 .

[3]  S. T. Buckland,et al.  An Introduction to the Bootstrap. , 1994 .

[4]  S. Duffy,et al.  The effect of encoding task on memory for sentence pairs varying in causal relatedness , 1990 .

[5]  B. Winograd,et al.  Audit Practices of PricewaterhouseCoopers , 2000 .

[6]  김상진,et al.  The Impact of Organizational Context on the Performance of ERP Systems , 2003 .

[7]  R. Elliott,et al.  Twenty-First Century Assurance , 2002 .

[8]  Ralph E. Viator,et al.  Computer Auditor Reliance on Automated and Non-Automated Controls As a Function of Training and Experience , 1998 .

[9]  Morton Ann Gernsbacher,et al.  Two Decades of Structure Building. , 1997, Discourse processes.

[10]  Jean C. Bedard,et al.  The Role of Problem Representation Shifts in Auditor Decision Processes in Analytical Procedures , 1999 .

[11]  Joseph T. Wells.  Ghost Goods: How to Spot Phantom Inventory , 2001 .

[12]  M. Schrage.  Shared Minds: The New Technologies of Collaboration , 1990 .

[13]  Peter C Panus.  The devil's in the details. , 2003, Physical therapy.

[14]  A. Faye Borthick,et al.  Auditing System Development: Constructing the Meaning of "Systematic and Rational" in the Context of Legacy Code Migration for Vendor Incentives , 2008, J. Inf. Syst..

[15]  S. Duffy,et al.  Degree of causal relatedness and memory , 1987 .

[16]  Rebecca J. Whitener.  The integrated auditor , 1992 .

[17]  A. Kozulin.  Psychological Tools: A Sociocultural Approach to Education , 1998 .

[18]  Russell A. Jackson.  Today's internal auditor , 2007 .

[19]  James T. Perry,et al.  Building Accounting Systems Using Access '97 , 1998 .

[20]  Barry L. Lewis,et al.  Determinants of Auditor Expertise , 1990 .

[21]  J. McGrath.  Groups: Interaction and Performance , 1984 .

[22]  Rolf A. Zwaan,et al.  Situation models in language comprehension and memory. , 1998, Psychological bulletin.

[23]  Stanley F. Biggs,et al.  Priming/Reaction-Time Evidence of the Structure of Auditors’ Knowledge of Financial Statement Errors , 2010 .

[24]  Nancy A. Bagranoff,et al.  THE EVOLVING ROLE OF IS AUDIT: A FIELD STUDY COMPARING THE PERCEPTIONS OF IS AND FINANCIAL AUDITORS , 2003 .

[25]  Activité ad‐hoc Types de tâches.  Introduction to BPMN , 2004 .

[26]  Jay C. Thibodeau,et al.  Norwood Office Supplies, Inc.: A Teaching Case to Integrate Computer‐Assisted uditing Techniques into the Auditing Course , 2001 .

[27]  C. Lévi-Strauss.  The Savage Mind , 1967 .

[28]  Mark F. Zimbelman,et al.  Using Game Theory and Strategic Reasoning Concepts to Prevent and Detect Fraud , 2004 .

[29]  Miklos A. Vasarhelyi,et al.  Feasibility and Economics of Continuous Assurance , 2002 .

[30]  Alvin A. Arens,et al.  Perspectives on Auditing Education after Sarbanes‐Oxley , 2006 .

[31]  D. R. Carmichael,et al.  The PCAOB and the Social Responsibility of the Independent Auditor , 2004 .

[32]  B. Rogoff.  Cognition as a collaborative process. , 1998 .

[33]  Lawrence W. Barsalou,et al.  Language comprehension: Archival memory or preparation for situated action? , 1999 .

[34]  Donald R. Jones,et al.  Analyzing a Potential Warranty Call Center Budget Overrun: Using Database Queries to Solve Business Problems , 2005, J. Inf. Syst..

[35]  Rolf A. Zwaan,et al.  Discourse comprehension. , 1997, Annual review of psychology.

[36]  K. Weick.  Making Sense of the Organization , 2000 .

[37]  Nancy A. Bagranoff,et al.  Core Concepts of Information Technology Auditing , 2003 .

[38]  Robert Libby,et al.  Judgment and decision-making research in accounting and auditing: The role of knowledge and memory in audit judgment , 1995 .

[39]  K. Weick.  FROM SENSEMAKING IN ORGANIZATIONS , 2021, The New Economic Sociology.

[40]  Arnold M. Wright,et al.  The Effectiveness of Alternative Risk Assessment and Program Planning Tools in a Fraud Setting , 2004 .

[41]  Ralph E. Viator,et al.  An Investigation of Multidimensional Knowledge Structure and Computer Auditor Performance , 2000 .

[42]  Donald R. Jones,et al.  Designing Learning Experiences within Learners' Zones of Proximal Development (ZPDs): Enabling Collaborative Learning On-Site and Online , 2003, J. Inf. Syst..

[43]  A. Sfard.  On Two Metaphors for Learning and the Dangers of Choosing Just One , 1998 .

[44]  Patricia Milne,et al.  A Model for Work-Based Learning , 2005 .

[45]  John Todd,et al.  Computational Models as a Knowledge Management Tool: A Process Model of the Critical Judgments Made during Audit Planning , 2004, J. Inf. Syst..

[46]  Rolf A. Zwaan,et al.  The Construction of Situation Models in Narrative Comprehension: An Event-Indexing Model , 1995 .

[47]  Stephen A. White,et al.  Business Process Modeling Notation (BPMN), Version 1.0 , 2004 .

[48]  Kenneth A. Bruffee,et al.  Collaborative Learning: Higher Education, Interdependence, and the Authority of Knowledge , 1999 .

[49]  Marc Prensky,et al.  Digital game-based learning , 2000, CIE.

[50]  Donald R. Jones,et al.  Developing Database Query Proficiency: Assuring Compliance for Responses to Web Site Referrals , 2001, J. Inf. Syst..

[51]  P. Johnson-Laird,et al.  Mental Models: Towards a Cognitive Science of Language, Inference, and Consciousness , 1985 .

[52]  A. C. Kruger.  Peer collaboration: conflict, cooperation, or both? , 1993 .

[53]  Ed O'Donnell,et al.  An Analysis of the Group Dynamics Surrounding Internal Control Assessment in Information Systems Audit and Assurance Domains , 2000, J. Inf. Syst..

[54]  Robert Libby,et al.  Determinants of judgment performance in accounting settings: Ability, knowledge, motivation , 1993 .

[55]  Rick Elam,et al.  Continuous Auditing: Building Automated Auditing Capability , 2002 .

[56]  K. Bruffee.  Collaborative Learning: Higher Education, Interdependence, and the Authority of Knowledge , 1995 .

[57]  Ira Solomon,et al.  Judgment and decision-making research in accounting and auditing: Judgment and decision-making research in auditing , 1995 .

[58]  K. Kitchener,et al.  Developing Reflective Judgment: Understanding and Promoting Intellectual Growth and Critical Thinking in Adolescents and Adults. Jossey-Bass Higher and Adult Education Series and Jossey-Bass Social and Behavioral Science Series. , 2009 .