Using real-world cases to illustrate the power of analytical procedures

Abstract

Accounting instructors often introduce analytical procedures (APs) to students as a series of techniques that help to reduce audit time and cost. However, they do not generally provide students with sufficient real-world cases that encourage students to use data from multiple sources, exercise judgment, and evaluate risks. This paper uses MiniScribe Corporation to illustrate how a real-world case might be incorporated into an auditing class to achieve some of the recommendations of the Accounting Education Change Commission and, at the same time, highlight the efficiency and effectiveness of APs. The case also reinforces the joint importance of qualitative and quantitative factors in detecting management fraud