Accounting-Auditing Case Study

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I. Title: Using Visualization Software in the Audit of Revenue Transactions to Identify Anomalies

II. Introduction:

In this project, you will use Tableau, data visualization software, to audit revenue transactions to identify anomalies. The project includes a group component to reflect the collaborative nature of accountants who must work together on audit teams. You will be randomly placed into an online discussion group in LEO. The purpose of the online discussion group is to help one another learn how to use Tableau and make decisions regarding the results of your data analysis. Participation in the online discussion group is mandatory.

After collaboratively discussing the case with your colleagues (classmates) in the online discussion group, you will write and submit an individual report written in your own words to your boss (professor).

Scenario: You are a senior auditor at the CPA firm of Aoife & Josephine, LLC. Your manager (professor) calls you into her office to discuss the use of Tableau, data analytic and visualization software, on an upcoming audit for a client. She highly suggests you learn how to use Tableau to perform data analytics on sales revenue. Further, she suggests you read the following articles to prepare for this audit:

▪ Cao, M., R. Chychyla, and T. Stewart. 2015. Big Data analytics in financial statement audits. Accounting Horizons 29 (2): 423–429. http://ezproxy.umuc.edu/login?url=http://search.ebscohost.com.ezproxy.umuc.edu/lo gin.aspx?direct=true&db=bth&AN=103541034&site=eds-live&scope=site

▪ Raphael, J. 2017. Rethinking the audit. Journal of Accountancy 223 (4): 28–32. http://ezproxy.umuc.edu/login?url=http://search.ebscohost.com.ezproxy.umuc.edu/lo gin.aspx?direct=true&db=heh&AN=122600698&site=eds-live&scope=site

▪ On the ICAEW Website, you may download an excellent report: ICAEW.com. (2016). Data analytics for external auditors. [online] Available at: https://www.icaew.com/-/media/corporate/files/technical/iaa/tecpln14726-iaae-data- analytics---web-version.ashx [Accessed 13 Jul. 2019].

III. Steps to Completion 1. Read the articles recommended by your manager (professor) to gain an understanding about how big data, data analytics, and new technologies are transforming external audits. 2. Read the case: Using Visualization Software in the Audit of Revenue Transactions to Identify Anomalies, which is posted in LEO: Contents>Course Resources>Projects & Rubrics.

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3. Review resources to learn how to use Tableau in Appendix A on the last page of this document. Collaborate with your online discussion group to learn Tableau tips. Watch the Tableau video tutorials help videos as needed, which can be found in Appendix A. 4. Complete the case requirements that start on page 35 of Using Visualization Software in the Audit of Revenue Transactions to Identify Anomalies. 5. Complete the following one additional requirement, which is not included in the case study. Prepare an audio-enhanced presentation using MS PowerPoint with audio. Adding a video of yourself using a Webcam is optional in the lower right corner of your PowerPoint recording is optional. The presentation file should present a summary of your findings. The PowerPoint presentation must include the following:

▪ Graphs, tables, and other data visualization tools to explain and support your findings, and

▪ Speakers notes placed under each slide.

IV. Deliverables

1. Report Prepare an 8-10-page (excluding the cover sheet) report to the boss in MS Word that responds to questions 1 and 2 presented in the case study on page 35 of Using Visualization Software in the Audit of Revenue Transactions to Identify Anomalies.

a. Prepare the report using APA Style. i.Be sure to include a cover sheet, separate reference page, and cite all sources. Failure to adhere to APA will result in a lower grade.

b. Your report will be reviewed through TurnItIn.

2. Memo To respond to question 3 on page 35 of Using Visualization Software in the Audit of Revenue Transactions to Identify Anomalies, prepare a memo using the template in Appendix B to document your analyses and conclusions as to the specific daily sales from certain locations that you recommend selecting for focused substantive testing.

a. Prepare the memo using an audit workpaper format. APA is inappropriate for this memo requirement. Your memo should represent your individual work written in your own words.

b. Your memo will also be reviewed through TurnItIn.

3. Presentation Prepare an audio-enhanced PowerPoint presentation that summarizes your findings for Deliverables 1 and 2. Adding a video of yourself in the lower corner of your PowerPoint slides is optional.

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V. Rubric:

You will find the rubric in LEO under Contents>Course Resources>Projects & Rubrics.

VI. Helpful Hints

1. Read the grading rubric before beginning the project to fully understand the requirements; ask questions about the requirements if needed.

2. Write your deliverables in your own words. 3. All writing assessments submitted in the Assignment folder will be

automatically submitted to TurnItIn (TII). Students are strongly advised to review your TII Similarity Score and edit your submission if necessary. TurnItIn.com offers many resources to help you learn how to interpret the Similarity score. Citing what other authors’ have published is expected in graduate courses. If you are unfamiliar with APA Style requirements for in- text citations, the reference list, etc. please learn how to apply APA to all deliverables.

4. Review. ▪ Developing your graduate level writing skills:

https://owl.english.purdue.edu/owl/section/1/2/ ▪ What Constitutes Graduate Level Writing; source unknown. In LEO,

Content, Week 9. 5. Seek feedback before submitting your final version for a grade.

▪ Ask a classmate, friend, or family member to read your report, watch your presentation, and share constructive feedback to help improve your final version.

▪ Submit your draft MS Word documents to the graduate writing tutors at least 2 weeks before the project due date to ensure you will have time to review their feedback and edit your documents as needed.

▪ Graduate writing tutors are a FREE resource and can be accessed in your LEO classroom under Content.

6. Submit all required files on or before the due date. Late assignment policies apply and can be found in the syllabus. No assignments are accepted after the last day of class.

7. Ask questions as needed in the weekly Ask the Professor forums.

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Reference Christensen, B., R. Elder, and S. Glover. 2015. Behind the numbers: Insights into large

audit firm sampling policies. Accounting Horizons 29 (1): 61–81. https://doi.org/10.2308/acch-50921 Using Visualization Software in the Audit of Revenue Transactions to Identify Anomalies 35 Issues in Accounting Education Volume 33, Number 4, 2018

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Appendix A

Tableau Tutorials Go to the Tableau.com Website and type Free Training Videos into the search field. https://www.tableau.com/learn/training The Tableau Video Library includes over 9 hours of videos:

▪ Getting Started – 3 videos ▪ Connecting to Data – 11 videos ▪ Visual Analytics – 24 videos ▪ Dashboards and Stories – 8 videos ▪ Mapping – 11 videos ▪ Calculations – 16 videos ▪ Why is Tableau Doing That? – 5 videos ▪ How To - 10 videos

Finding the more relevant video resources is an excellent opportunity for your online discussion group to help each other learn Tableau.