Auditing Cases For undergraduate and graduate Auditing, Professional Research Case or capstone courses. Auditing Cases 3/e, through an active learning approach, provides a comprehensive case book focusing on various auditing activities.

Table of Contents:
Section 1: Client Acceptance Case 1.1 — Ocean Manufacturing, Inc.: The New Client Acceptance Decision Section 2: Understanding the Client’s Business and Assessing Risk Case 2.1 — Your1040Return.com: Evaluating eBusiness Revenue Recognition, Information Privacy, and Electronic Evidence Issues Case 2.2 — Dell Computer Corporation: Evaluation of Client Business Risk Case 2.3 — Flash Technologies, Inc.: Risk Analysis and Resolution of Client Issues    Section 3: Professional and Ethical Issues Case 3.1 — A Day in the Life of Brent Dorsey: Staff Auditor Professional Pressures   Case 3.2 — Nathan Johnson’s Rental Car Reimbursement: Solving Ethical Dilemmas–Should He Pocket the Cash? Case 3.3 — The Anonymous Caller: Recognizing It’s a Fraud and Evaluating What to Do         Case 3.4 — WorldCom:  The Story of a Whistleblower Section 4: Accounting Fraud and Auditor Legal Liability Case 4.1 — Enron Corporation and Andersen, LLP: Analyzing the Fall of Two Giants  Case 4.2 — Comptronix Corporation: Identifying Inherent Risk and Control Risk Factors          Case 4.3 — Cendant Corporation: Assessing the Control Environment and Evaluating Risk of Financial Statement Fraud Case 4.4 — Waste Management, Inc.: Manipulating Accounting Estimates Case 4.5 — Xerox Corporation: Evaluating Risk of Financial Statement Fraud Case 4.6 — Phar-Mor, Inc.: Accounting Fraud, Litigation, and Auditor Liability Section 5: Internal Control over Financial Reporting Case 5.1 — Simply Steam, Co.: Evaluation of Internal Control Environment Case 5.2 — Easy Clean, Co.: Evaluation of Internal Control Environment Case 5.3 — Red Bluff Inn & Café: Establishing Effective Internal Control in a Small Business  Case 5.4 — St. James Clothiers: Evaluation of Manual and IT-Based Sales Accounting System Risks   Case 5.5 — Collins Harp Enterprises: Recommending IT Systems Development Controls    Case 5.6 — Sarbox Scooter, Inc.: Scoping and Evaluation Judgments in the Audit of Internal Control over Financial Reporting Section 6: The Impact of Information Technology Case 6.1 — Harley Davidson, Inc.: Identifying eBusiness Risks and Related Assurance Services for the eBusiness Marketplace Case 6.2 — Jacksonville Jaguars: Evaluating IT Benefits and Risks and Identifying Trust Services Opportunities Also see the following cases: Case 2.1 - Your1040Return.com: Evaluating eBusiness Revenue Recognition, Information Privacy, and Electronic Evidence Issues Case 5.4 — St. James Clothiers: Evaluation of Manual and IT-Based Sales Accounting System Risks Case 5.5 — Collins Harp Enterprises: Recommending IT Systems Development Controls Case 9.2 — Henrico Retail, Inc.: Understanding the IT Accounting System and Identifying Audit Evidence for Retail Sales Section 7: Planning Materiality Case 7.1 — Anne Aylor, Inc.: Determination of Planning Materiality and Tolerable Misstatement     Also see the following cases: Case 5.6 — Sarbox Scooter, Inc.: Scoping and Evaluation Judgments in the Audit of Internal Control over Financial Reporting Case 8.2 — Northwest Bank: Developing Expectations for Analytical Procedures Case 8.3 — Burlingham Bees: Using Analytical Procedures as Substantive Tests Case 12.1 — EyeMax Corporation: Evaluation of Audit Differences Case 12.2 — Auto Parts, Inc.: Considering Materiality When Evaluating Accounting Policies and Footnote Disclosures Section 8: Analytical Procedures Case 8.1 — Laramie Wire Manufacturing: Using Analytical Procedures in Audit Planning        Case 8.2 — Northwest Bank: Developing Expectations for Analytical Procedures Case 8.3 — Burlingham Bees: Using Analytical Procedures as Substantive Tests Also see the following cases: Case 1.1 — Ocean Manufacturing, Inc.: The New Client Acceptance Decision Case 2.3 — Flash Technologies, Inc.: Risk Analysis and Resolution of Client Issues Section 9: Auditing Cash and Revenues Case 9.1 — Wally’s Billboard & Sign Supply: The Audit of Cash Case 9.2 — Henrico Retail, Inc.: Understanding the IT Accounting System and Identifying Audit Evidence for Retail Sales Case 9.3 — Longeta Corporation:  Auditing Revenue Contracts Section 10: Planning and Performing Audit Procedures in the Revenue and Expenditure Cycles–An Audit Simulation Case 10.1 — Southeast Shoe Distributor, Inc.: Identification of Tests of Controls for the Revenue Cycle (Sales and Cash Receipts Case 10.2 — Southeast Shoe Distributor, Inc.: Identification of Substantive Tests for the Revenue Cycle (Sales and Cash Receipts) Case 10.3 — Southeast Shoe Distributor, Inc.: Selection of Audit Tests and Risk Assessment for the Revenue Cycle (Sales and Cash Receipts) Case 10.4 — Southeast Shoe Distributor, Inc.: Performance of Tests of Transactions for the Expenditure Cycle (Acquisitions and Cash Disbursements) Case 10.5 — Southeast Shoe Distributor, Inc.: Performance of Tests of Balances for the Expenditure Cycle (Acquisitions and Cash Disbursements) Section 11: Developing and Evaluating Audit Documentation Case 11.1 — The Runners Shop: Litigation Support Review of Audit Documentation for Notes Payable            Also see the cases included in Sections 9 and 10 Section 12: Completing the Audit, Reporting to Management, and External Reporting Case 12.1 — EyeMax Corporation: Evaluation of Audit Differences Case 12.2 — Auto Parts, Inc.: Considering Materiality When Evaluating Accounting Policies and Footnote Disclosures Case 12.3 — K&K Inc.: Leveraging Audit Findings to Provide Value-Added Insights   Case 12.4 — Surfer Dude Duds, Inc.: Considering the Going-Concern Assumption Case 12.5 — Murchison Technologies, Inc.: Evaluating an Attorney’s Response and Identifying the Proper Audit Report