The case begins with matters pertaining to the acceptance of a new client. This conforms with concern in the profession about quality control in this decision. The importance of procedures that precedes the beginning of field work is the subject of the second unit. The student is provided with an opportunity to plan the engagement and perform analytic review. The review of the client’s internal control environment is the subject of the third unit. The appendix to that unit is devoted to matters pertaining to the client’s computer processing policies.
Together, these materials allow students to apply their knowledge of business systems and to make recommendations for their improvement. The next two units involve substantive testing. The first requires that a student devise and implement a statistical sampling activity. In the second unit, the student is provided with an opportunity t test accounts receivables. In an appendix to Unit 5, an appreciation for the look and feel of the audit program and working papers is provided. The case concludes with a unit devoted to the conclusion of the audit and the resolution of its findings. Throughout, students are required to perform the critical communications that are involved in an audit of a business. Proficiency in this regard is absolutely essential for success in accounting.
Unit 1 New Client Acceptance
Unit 2 Engagement Planning
Unit 3 Internal Control Documentation
Unit 4 Tests of Controls
Unit 5 Year-End Substantive Procedures Accounts
Receivable
Unit 6 Completing the Audit-Procedures and Report