Showing papers in "Issues in Accounting Education in 2010"
TL;DR: In this paper, the authors made two novel contributions to ranking accounting research programs constructed from publication counts in top journals (AOS, Auditing, BRIA, CAR, JAE, JAR, JATA, JIS, JMAR, RAST, and TAR).
Abstract: This paper makes two novel contributions to ranking accounting research programs constructed from publication counts in top journals (AOS, Auditing, BRIA, CAR, JAE, JAR, JATA, JIS, JMAR, RAST, and TAR). In contrast to previous studies, we recognize the mobility of intellectual assets tied to the human capital of accounting researchers, and therefore base our rankings on the researchers’ current affiliations rather than their affiliations at the time of publication. Also, we categorize each article written by topical area (auditing, financial, managerial, accounting information systems, tax, and other) and by methodology (analytical, archival, experimental, and other) and provide separate accounting program rankings by topical area and by methodology. These two innovations provide a rich, centralized information resource for decision-makers—both institutional and individual—in choosing how to allocate time, resources, and expertise.
91 citations
TL;DR: The past decade has been a difficult period in the history of the accounting profession in the U.S. as discussed by the authors, and this challenging environment provides an opportunity for the accounting academy, acting as "trustees" for the integrity of the profession, to play a significant role in sustaining and enhancing the profession's status as a profession.
Abstract: The past decade has been a difficult period in the history of the accounting profession in the U.S. This challenging environment provides an opportunity for the accounting academy, acting as “trustees” for the integrity of the profession, to play a significant role in sustaining and enhancing the profession’s status as a profession. Generally, accounting educators play this role in two ways: through our practice-related scholarship and through our teaching. This paper draws on a recent comparative study of peer professions to offer insights to accounting educators as we seek to sustain the accounting profession specifically through our teaching. One key insight is that accounting education, as professional education, must be broadly formative, encompassing three broad spheres of professional preparation: technical knowledge, practice skills, and, of critical importance, normative purpose and professional identity. Other insights relate to the use of “signature images” of professional identity an...
56 citations
TL;DR: The authors discusses the changing function of the auditing profession, analyzes the advancement of auditing technology featuring continuous auditing and monitoring, and identifies three primary attributes (attitudes, technical competences, and behaviors) that will define the real-time economy auditor.
Abstract: The real-time economy (RTE) changes the way accounting information is received, processed, and analyzed. Consequently, it drives demand for auditors who possess enhanced skills and attitudes. Unsurprisingly, the current generation of auditing students expects to be well prepared when entering the profession and facing these new challenges. Auditing educators have the unique opportunity to assume a leading role and empower modern auditors, arming them with the best weapons available to combat error and fraud. This position paper discusses the changing function of the auditing profession, analyzes the advancement of auditing technology featuring continuous auditing and monitoring, and identifies three primary attributes (attitudes, technical competences, and behaviors) that will define the RTE auditor. For each of these attributes, this paper identifies educational media (or instructional tools) that may be incorporated into auditing curricula as a way of introducing and developing these skills.
53 citations
TL;DR: In this paper, the authors examined the relationship between class participation and learning and found that preparation for and frequency of participation in class discussion is positively related to students' comfort participating in class discussions.
Abstract: Class discussion is frequently used in accounting education. Prior research indicates that preparation for and frequency of participation in class discussion is positively related to students’ comfort participating. This study extends this literature by examining the relationship between class participation and learning. In this study, 323 sophomore business students enrolled in accounting courses and completed pre- and post-course surveys concerning their perceptions about class discussion; in addition, instructors provided students’ grades for our use in this study. Path model results indicate that preparation is positively related to frequency of participation, which, in turn, is positively related to students’ comfort participating in class discussion. Furthermore, students’ comfort participating in class discussion is positively related to learning. A practical implication of this finding on the learning-comfort relationship is that instructors’ efforts to foster student comfort with class ...
52 citations
TL;DR: Results indicate that student engagement, as enabled via Second Life™ may lead to greater student performance, however, results also indicate a reduction in performance if students have adverse reactions to the environment.
Abstract: Immersive virtual worlds such as Second Life™ promise the possibility of an engaging platform for learning. This paper examines the success of Second Life™ in enabling an engaging learning environment within a first-year financial accounting course, specifically the relationship between student engagement and performance. The paper details the use of two 3-D objects built to support the course, an interactive accounting equation, and t-account model. Results indicate that student engagement, as enabled via Second Life™ may lead to greater student performance. However, results also indicate a reduction in performance if students have adverse (dizziness, nausea) reactions to the environment.
49 citations
TL;DR: This article examined student experiences as expressed in their own words in written journals and found subtle group formation effects not apparent in prior studies, and enriches findings derived from quantitative questionnaire responses.
Abstract: This paper addresses an issue that most accounting instructors face when assigning group work: does the method of forming groups affect the group experience and, if so, how? Our study provides a student characterization of group formation effects, by examining student experiences as expressed in their own words in written journals This view from inside the groups reveals subtle group formation effects not apparent in prior studies, and enriches findings derived from quantitative questionnaire responses The findings from this study are used to create guidance for researchers, instructors, and students
45 citations
TL;DR: This position paper argues that the eXtensible Business Reporting Language (XBRL) be integrated across the accounting curriculum, in a manner relevant to the temporal stage and content of particular courses within the curriculum.
Abstract: This position paper argues that the eXtensible Business Reporting Language (XBRL) be integrated across the accounting curriculum, in a manner relevant to the temporal stage and content of particular courses within the curriculum. XBRL is a metadata representation language for the Internet, based on the World Wide Web consortium’s eXtensible Markup Language (XML). XBRL provides an important foundation for the automated transfer of accounting information and associated metadata. The design of XBRL is fine-tuned to meet the particular needs of accounting and related disclosures. Several countries have adopted XBRL in a variety of information value chains, notably in the USA context the Securities and Exchange Commission’s interactive data program. XBRL has implications for the totality of the accounting curriculum and pedagogy. A program for the integration of XBRL across a typical accounting curriculum is developed. The proposed XBRL assignments, as part of this program, are aligned with Bloom’s T...
43 citations
TL;DR: In this article, the authors provide suggestions for developing debates for use in the accounting classroom and two examples of debates used by the authors, one requiring students to argue for or against the extension of tax provisions currently being deliberated by Congress, and the other requiring them to examine the provisions of Sarbanes-Oxley and propose amendments to the bill.
Abstract: While critical thinking is necessary for accountants in today’s business world, cultivating students’ critical thinking skills in an accounting classroom can be a challenge. The extant literature suggests that debate is a well-established pedagogical tool for enhancing student critical thinking skills, yet debate is not often used effectively in accounting classrooms. We provide suggestions for developing debates for use in the accounting classroom and two examples of debates used by the authors. The first requires students to argue for or against the extension of tax provisions currently being deliberated by Congress. The second requires students to examine the provisions of Sarbanes-Oxley and propose amendments to the bill.
43 citations
TL;DR: In this paper, the impact of a lenient grading scale versus a strict grading scale on students' achievement was analyzed in an upper-level undergraduate accounting course, where the level of "average" mastery in the latter category, the grade of C, is coincident with the minimum passing requirement of the professional accounting examinations.
Abstract: The strategy of evaluating students' achievement using a marking system is a common practice in higher education institutions. The result of a student's effort is usually communicated in the form of a letter grade or percentage correct on an exam or on the course as a whole. Although a vast majority of instructors use various grading policies and the impact of different grading policies on learning is a basis of consider- able debate among academics, the empirical work regarding the impact of different grading policies on students' performance does not include applications to accounting, a discipline for which student learning is directly tied to success in passing professional examinations. Theoretically, one of the functions of a grading system is to motivate students to work harder and perform better. This study provides insight into the impact of a lenient grading scale versus a strict grading scale on students' achievement, where the level of "average" mastery in the latter category the grade of C, is coincident with the minimum passing requirement of the professional accounting examinations. The results of this study support the notion that an attainable strict grading policy can be used as an important pedagogical technique to motivate students to study and may provide insight into grade scale decisions faced by accounting faculty seeking to pre- pare their students for the rigor of professional exams. Contrary to prior results in the literature, we find that when used in an upper-level undergraduate accounting course the stricter standard has a more profound effect on achievement for students at the lower end of the grade distribution.
40 citations
TL;DR: In this paper, the authors provide a career guidance for current and potential doctoral students in accounting and, in the process, help them gain a greater awareness of what it means to be an accounting professor.
Abstract: The purpose of this paper is to provide a concise career guide for current and potential doctoral students in accounting and, in the process, help them gain a greater awareness of what it means to be an accounting professor. The guide can also be used by accounting faculty in doctoral programs as a starting point in mentoring their doctoral students. We begin with foundational guidance to help doctoral students better understand the “big picture” surrounding the academic accounting environment. We then provide specific research guidance and publishing guidance to help improve the probability of publication success. Actions are suggested that doctoral students and new faculty can take to help jump-start their academic careers. We finish with guidance regarding some important acronyms of special interest to doctoral students in accounting.
37 citations
TL;DR: In this article, the SEC and other global financial communities have mandated the use of XBRL (eXtensible Business Reporting Language) for certain public filings for financial reporting.
Abstract: As technology provides more efficient and effective methods for financial reporting, students are encouraged to gain experience using these innovations. The SEC and other global financial communities have mandated the use of XBRL (eXtensible Business Reporting Language) for certain public filings. The following interactive exercise exposes students to XBRL and provides hands-on experience in using related tools. In Task 1, students learn about the underlying mechanics of XBRL. In Task 2, students use a programmed learning approach to analyze financial information using the SEC’s free interactive financial viewer. Task 3 includes discussion questions related to XBRL and specific accounting courses (i.e., financial, audit, managerial, and systems).
TL;DR: In 2008, the Education Committee of the American Accounting Association launched an initiative to ignite a nationwide dialog of practitioners, academics, and other prominent stakeholders to assess the quality and level of satisfaction with current Master's of Accountancy programs, the relevance of current coursework, a....
Abstract: Global commerce has undergone massive changes over the last two decades. No less so has the worldwide public accounting profession. We have seen two market crashes in the span of eight years, a host of financial reporting fiascoes, and the demise of Arthur Andersen. Historical cost-based accounting is giving way to fair-value accounting, and International Financial Reporting Standards are replacing national rules and regulations. And, yet, not since the Accounting Education Change Commission 20 years ago has there been a significant nationwide dialog regarding changing societal needs and the adequacy of our collegiate accounting programs to meet those needs. With this void in mind, the Education Committee of the American Accounting Association launched in 2008 an initiative to ignite a nationwide dialog of practitioners, academics, and other prominent stakeholders to assess the quality and level of satisfaction with current Master’s of Accountancy programs, the relevance of current coursework, a...
TL;DR: In this article, the authors describe an assignment designed to take advantage of this finding by requiring students to write six mini-cases in a multiple choice format, each mini-case includes a problem scenario and four plausible alternative solutions.
Abstract: Research on active learning in accounting education suggests that when students develop their own solutions and/or explanations, they take ownership of the knowledge they gain and are more likely to retain it (Springer and Borthick 2007; Hermanson 1994; Cottell and Millis 1993). In this paper, we describe an assignment designed to take advantage of this finding by requiring students to write six mini-cases in a multiple choice format. Each mini-case includes a problem scenario and four plausible alternative solutions. Students select and defend the one best solution and then document a full analysis of all of the alternatives pointing out why they are less preferred. We implemented the assignment in an undergraduate course in taxation. Feedback from students indicates the assignment enhanced their learning of tax technical knowledge, required them to be creative and original, encouraged them to make links between related tax concepts, and motivated them to use research resources more effectively.
TL;DR: Peterson and Zikmund as mentioned in this paper presented six short, open-ended internal control cases, addressing the following control issues: hiring practices, weaknesses in credit authorization procedures, benefits and risks of new technology, remote access, disaster recovery/business continuity plans, and procedures for employee reimbursements.
Abstract: The importance of a strong internal control system is a central theme in auditing and accounting information systems courses, taking on even more importance with the enactment of the Sarbanes-Oxley Act of 2002. Effective enterprise governance, the fulfillment of management objectives, and minimizing the opportunity for fraudulent activity are positively associated with the strength of the internal control system of a company (Peterson and Zikmund 2004). Six short, open-ended internal control cases are presented here. One or more of the cases can be utilized in auditing or accounting information systems courses. These cases address the following control issues: (1) hiring practices, (2) weaknesses in credit authorization procedures, (3) benefits and risks of new technology, (4) benefits and risks of remote access, (5) disaster recovery/business continuity plans, and (6) procedures for employee reimbursements. The cases can be used in small group or individual settings in traditional auditing clas...
TL;DR: The US Securities and Exchange Commission (SEC) released Rule 33-9002 for the phase-in of interactive data (SEC 2009a) on January 20, 2009.
Abstract: On January 20, 2009, the US Securities and Exchange Commission (SEC) released Rule 33-9002 for the phase-in of interactive data (SEC 2009a) An important component of this rule is the phase-in of detailed tagging of financial statement note disclosures Tagging is the process of associating a taxonomy element with a financial statement concept for a particular context While some of the filers have participated in the SEC Voluntary Filing Project and prepared instance documents tagged at the line item level most have not prepared detail-tagged notes to accompany the financial statements (SEC 2005; Choi et al 2008) This case discusses the structure of disclosures, as they exist in the 2009 US GAAP Taxonomy, followed by a discussion of dimensional extensions and concludes with an example of block and detailed disclosure tagging using Rivet Software’s Dragon Tag (Rivet 2009) The example uses the capitalized costs disclosure for Anadarko Petroleum, a publicly traded company Following the exa
TL;DR: In this article, the effect of cognitive style and the use or non-use of two versions of a hypertext learning aid and their interaction on student performance in advanced financial accounting was investigated.
Abstract: This study extends previous work by combining the effect of cognitive style and the use or non-use of two versions of a hypertext learning aid and their interaction on student performance in advanced financial accounting. One-third of the students did not use a learning aid at all, one-third used a basic version of the learning aid (where only the solution was provided), and one-third used an extended version of the learning aid (where both the solution and derivation of the solution is provided). An additional extension of the prior literature is that these effects were investigated on two different kinds of examination questions. The results demonstrate that for a familiar exam question, only the learning aid was significant, and for an unfamiliar exam question, the learning aid, cognitive style, and the interaction between learning aid and cognitive style were significant. For both types of questions, performance differed based upon cognitive style. These results suggest that educators should...
TL;DR: This instructional resource guides students through the steps in mapping financial statement line items to the U.S. GAAP XBRL taxonomy, which encapsulates most of the reporting concepts found in financial reporting.
Abstract: XBRL, based on XML, is an Internet language for disclosure of business reporting language. XBRL is the technological foundation for the interactive data mandate by the Securities and Exchange Commission (SEC). The mandate requires corporate filers to disclose data in quarterly and annual reports in XBL. A key building block supporting the mandate is a substantial U.S. GAAP XBRL taxonomy that encapsulates most of the reporting concepts found in financial reporting. Filers must align their existing reports to the taxonomy. The accuracy of mapping financial statement line items to the U.S. GAAP taxonomy is of fundamental importance. Mapping errors may be as simple as mapping to an incorrect taxonomy concept, which should be discovered during review. Ineffective mapping may lead to unnecessary extensions, which hinders comparability. This instructional resource guides students through the steps in mapping financial statement line items to the taxonomy. While the case does not require students to cre...
TL;DR: This tutorial requires you to use ACL, a computer- assisted audit tool (CAAT), to determine a variety of audit sample sizes to gain some familiarity with the ACL tool and increase your knowledge of statistical sampling.
Abstract: The following instructional resource requires you to use ACL, a computer- assisted audit tool (CAAT), to determine a variety of audit sample sizes. In this tutorial, you will not only gain some familiarity with the ACL tool, but you will also have an opportunity to increase your knowledge of statistical sampling.
TL;DR: The Blazer Communications procurement audit case as discussed by the authors is aimed at providing students with a realistic setting to conduct audit procedures expected of interns and entry-level auditors, using a book wholesaler as a context.
Abstract: This case presents an introduction to conducting audit procedures and drafting audit observations as part of a business process audit. Using a book wholesaler as a context, the Blazer Communications procurement audit case is aimed at providing students with a realistic setting to conduct audit procedures expected of interns and entry-level auditors. Students execute a test plan as part of a procurement process audit, evaluate audit evidence, propose audit observations based on exceptions, and utilize subscription-based online internal audit/risk management services to participate in risk assessment planning activities and to suggest supplemental audit procedures. Audit evidence (interview recordings, policies and procedures manuals, process maps and narratives, transactional data) is provided in a variety of formats to increase assignment realism and allow flexibility in assignment completion. The case is appropriate for students with basic generalized audit software and database querying profic...
TL;DR: In this paper, the authors compare the emerging practice of business process modeling with the more traditional practice of system flowcharting, and present a case to help students develop advanced skills in documenting business processes and assess their ability to represent business processes.
Abstract: In this case, students (1) listen to (or read a transcript of) conversations among managers of a convenience store company about current and contemplated supply chain processes, (2) prepare a system flowchart and a business process diagram (BPD) to represent the processes, and (3) use these graphical representations to make inferences about system effectiveness. The case contrasts the emerging practice of business process modeling with the more traditional practice of system flowcharting. Instructors can use the case to help students develop advanced skills in documenting business processes and to assess their ability to represent business processes and make inferences about process effectiveness. The case is appropriate for accounting information systems and business courses in which business process modeling skills are developed or applied. Students should have a general knowledge of sales, order entry, and purchasing processes and be able to prepare simple flowcharts and BPDs.
TL;DR: In this paper, the authors present a case where they evaluate internal controls and the possibility of fraud in a very small not-for-profit child care center, a setting that is easy to understand.
Abstract: Management and auditors face increased responsibilities to evaluate internal control and assess the risk of fraud. This case provides the opportunity to evaluate internal controls and the possibility of fraud in a very small not-for-profit child care center, a setting that is easy to understand. The first goal of the case is to identify internal control weaknesses by applying the COSO internal control framework in an environment that lacks many aspects of internal control. Interactions among the five components of the COSO framework provide the basis for analyzing internal control. The case requires students to consider possible misappropriation of funds using the fraud triangle. A secondary goal of the case is to introduce financial reporting for a not-for-profit organization as a means of accountability.
TL;DR: In this paper, the authors studied the impact of the Partner Teacher Program (PTP) on accounting education and concluded that properly selected partners, matched with the demands of a particular course and properly prepared, supported, and integrated into the curriculum, can make significant positive contributions to accounting education.
Abstract: The supply of research-based, tenure-track accounting faculty is not commensurate with the demand. To address this challenge, colleges and universities, including those who typically rely upon adjuncts and clinical faculty, may wish to consider entering into a formal collaboration with a public accounting firm whereby a partner with support from the firm commits to teach an accounting course or a designated module in a course. One pilot program—the Partner Teaches Program (PTP), recently inaugurated by a public accounting firm—provided the opportunity to study the impact of such a program and generate recommendations. The findings support the conclusion that properly selected partners, matched with the demands of a particular course and properly prepared, supported, and integrated into the curriculum, can make significant positive contributions to accounting education. Based on these data, we have made recommendations to encourage firms and schools to consider initiating similar arrangements.
TL;DR: The Adrian Project as discussed by the authors ) is an applied learning exercise that enables accounting majors to apply their classroom learning by solving hypothetical financial tax fraud crimes, where students are organized into small working teams with oversight and teaching points provided by an assigned "coach" who is an IRS CI special agent.
Abstract: This paper describes the Internal Revenue Service Criminal Investigation’s (IRS CI’s) “Adrian Project.” Through a partnership with a college or university and IRS CI, the Adrian Project provides an applied-learning exercise that enables accounting majors to apply their classroom learning by solving hypothetical financial tax fraud crimes. This interactive exercise organizes students into small working teams with oversight and teaching points provided by an assigned “coach,” who is an IRS CI special agent. Using pre- and post- questionnaires, we find that students report significant improvement in the development of fraud detection skills and abilities related to: (1) gathering, organizing, and evaluating evidence; (2) employing various investigative tools to identify evidence of fraud; (3) conducting interviews for evidence-gathering purposes; and (4) communication. These skills and abilities are not only essential in fraud detection, but many of them are also invaluable to all accounting studen...
TL;DR: In this article, the authors explore the tax environment and propose a tax planning framework based on the tax environment, tax policy issues, and tax compliance process, and the individual tax formula.
Abstract: Part I: EXPLORING THE TAX ENVIRONMENT. 1. Types of Taxes and the Jurisdictions That Use Them. 2. Tax Policy Issues: Standards for a Good Tax. Part II: FUNDAMENTALS OF TAX PLANNING. 3. Taxes as Transaction Costs. 4. Maxims of Income Tax Planning. 5. Tax Research. Part III: THE MEASUREMENT OF TAXABLE INCOME. 6. Taxable Income From Business Operations. 7. Property Acquisitions and Cost Recovery Deductions. Appendix 7-A Midquarter Convention Tables. 8. Property Dispositions. 9. Nontaxable Exchanges. Part IV: THE TAXATION OF BUSINESS INCOME. 10. Sole Proprietorships, Partnerships, LLCs, and S Corporations. 11. The Corporate Taxpayer. Appendix 11-A Schedule M-3 for Reconciling Book and Taxable Income. 12. The Choice of Business Entity. 13. Jurisdictional Issues in Business Taxation. Part V: THE INDIVIDUAL TAXPAYER. 14. The Individual Tax Formula. Appendix 14-A Itemized Deduction Worksheet. Appendix 14-B Federal Transfer Tax Rates (2009). 15. Compensation and Retirement Planning . 16. Investment and Personal Financial Planning. Appendix 16-A Comprehensive Schedule D Problem. Appendix 16-B Federal Transfer Tax Rates (2009). 17. Tax Consequences of Personal Activities. Appendix 17-A Social Security Worksheet. Part VI: THE TAX COMPLIANCE PROCESS. 18. The Tax Compliance Process.
TL;DR: A forensic investigation of the Tallahassee BeanCounters (TBC), a privately owned minor league baseball team in Florida, is described in this paper, where the authors investigate the possible ways in which a fraud could be perpetrated and concealed within the organization.
Abstract: Your firm has been engaged to conduct a forensic investigation of the Tallahassee BeanCounters (TBC), a privately owned minor league baseball team in Tallahassee, Florida. Team owner Franklin Kennedy has told employees that the audit is related to the mortgage TBC obtained for the recently constructed training facility. However, Mr. Kennedy tells you privately that the investigation is not due to loan requirements; rather, it is due to his concerns arising from an anonymous tip he received in the mail. The assignment requires you and your investigative team to (1) analyze the financial and background data provided; (2) brainstorm the possible ways in which a fraud could be perpetrated and concealed within the organization; (3) determine the additional information you need to confirm or disprove your suspicions; and (4) request this information from the appropriate party at TBC. When your investigation is complete, you will present your written results to the owner, including (1) who committed th...
TL;DR: A survey of the current state of education conducted by KPMG and the Education Committee of the American Accounting Association is presented in this paper. But this survey focuses on the state of the education system.
Abstract: This is a survey of the current state of education conducted by KPMG and the Education Committee of the American Accounting Association.
TL;DR: This case will develop your technical querying skills and foster teamwork as you work in small groups acting as an outsourced internal audit team taking on Agile Machinery Group, Inc. (AMG) as a first-year client.
Abstract: The WorldCom fraud was detected by an internal auditor running Access queries, highlighting just one reason for gaining advanced querying skills. This case will develop your technical querying skills and, in addition, will foster teamwork as you work in small groups acting as an outsourced internal audit team taking on Agile Machinery Group, Inc. (AMG) as a first-year client. You are tasked with analyzing the nearly one million records that make up the journal entries of an actual privately held company that employs an array of processing modules and ledgers as well as a manually managed general journal. Using your institutional accounting knowledge, you must consider what the journal entries from each processing module should be, and then compare these expected entries to the actual entries made by company personnel and inquire as to any differences. Further, using critical thinking skills and advanced querying techniques, you must isolate other journal entries that should be studied more in-de...
TL;DR: In this paper, the authors provide students with the actual telephone records of a firm with a policy prohibiting employees from using company phones for personal long distance calls, which exposes students to (1) using generalized audit software, (2) validating data (for potential anomalies) before performing analysis, (3) analyzing nonfinancial information, (4) converting non-financial information into financial impact, and (5) writing a business letter outlining the findings of the compliance audit and recommendations.
Abstract: This case provides an active-learning opportunity for students to assume the role of an internal auditor conducting a compliance audit. Specifically, we provide students with the actual telephone records of a firm with a policy prohibiting employees from using company phones for personal long distance calls. The case exposes students to (1) using generalized audit software, (2) validating data (for potential anomalies) before performing analysis, (3) analyzing nonfinancial information, (4) converting nonfinancial information into financial impact (i.e., the cost of the nonbusiness long distance phone calls), and (5) writing a business letter outlining the findings of the compliance audit and recommendations. Students must understand the data, analyze it, interpret the results, and develop recommendations. Given that most shareholder value is lost due to strategic, operational, and business risks, rather than financial risks, audit committees and senior management are now putting pressure on inte...
TL;DR: In this paper, the authors introduce the alternatives that companies must consider when deciding how to comply with the SEC's (U.S. Security and Exchange Commission) 2009 mandate to include financial statements in XBRL format when submitting quarterly and annual reports.
Abstract: This case introduces the alternatives that companies must consider when deciding how to comply with the SEC’s (U.S. Security and Exchange Commission) 2009 mandate to include financial statements in XBRL format when submitting quarterly and annual reports. Jim’s Sporting Goods, an SEC-accelerated filer, is facing compliance with this mandate in about a year and they are investigating their alternatives. Working with Jim’s Sporting Goods’ income statement for 2010, students become actively engaged in each of three alternatives. Students first take on the role of an external tagging agent who must map Jim’s Sporting Goods’ income statement line items to elements in the U.S. GAAP XBRL taxonomy. Students make decisions between competing potential XBRL elements, document their decisions in a spreadsheet, and identify issues to be resolved by Jim’s Sporting Goods’ CFO. Second, students take on the role of an internal accountant who must learn to use an Excel-based software package, Rivet Dragon Tag, to...
TL;DR: In this paper, a case is designed to impart practical skills in data analysis techniques aimed at fraud examination, where students are required to identify potentially fraudulent travel expense reimbursements using data analysis tools such as ACL, IDEA, Microsoft Access and Picalo.
Abstract: This case is designed to impart practical skills in data analysis techniques aimed at fraud examination. Instructors could employ any one of widely available tools such as ACL, IDEA, Microsoft Access, or Picalo, which is an open-source data analysis tool. Couched in the context of a manufacturer of electronic components in the southeastern United States, the case involves the identification of potentially fraudulent travel expense reimbursements. In the case scenario, traveling salespersons submit expense reimbursement claims, which are subject to a number of business rules. Using data analysis techniques, students are required to identify potentially fraudulent travel expense reimbursements. The data analysis techniques covered in the case include basic features such as identifying duplicates and gaps to more advanced features like joining tables, finding unmatched records, filtering data based on various criteria, and classifying and summarizing data. The degree of structure provided to studen...