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An International Meeting of 2005 Annual MeetingAugust 7–10, 2005
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Effective Learning Strategies Forum
Monday, August 8, 2005
Session 6
Incorporating SOX 404 and Audit Simulation in an Undergraduate Auditing CoursePresenter:
Raymond J. Elson, Valdosta State University, Langdale CollegeDescription:
The learning outcomes of the session are assisting you in:
- Providing your students with hands on audit experience through the use of a practice set.
- Incorporating SOX 404 into your course to help students better understand internal controls and the attestation process.
Auditing as a discipline is best understood through hands-on practical experience. In addition, employers expect our students to be aware of current auditing and business issues: the most immediate one is SOX, especially Section 404. On graduation, students will be involved in SOX either as owners of internal controls (management) or will attest those controls (auditors). Therefore, it is important for our students to understand internal controls, a control framework such as COSO, and the use of such framework to identify, document, and evaluate those controls in a systemic manner.
To achieve these goals, this auditing course (which is taught in only one semester) incorporates an audit simulation or practice set to provide students with practical auditing experience and uses Auditing Alchemy Inc. (a PricewaterhouseCoopers product) to provide students with a better understanding of SOX 404. Students also use the Internet to review the various sections of SOX and Miller GAAS Guide to research auditing standards.
Students working in groups to complete the practice set over the course of the semester. The practice set is divided into modules or mini assignments and students are required to demonstrate their understanding of accounting and auditing techniques. In addition, the class watched the Auditing Alchemy video (within the CD) in which the concepts of COSO, a SOX 404-compliance approach, walkthroughs, and control matrices were discussed. Working in their assigned groups, students watched the remaining portions of the video (away from class) in which the management processes were discussed and controls identified. They demonstrated their understanding of the process by evaluating the effectiveness of the controls identified and documented by management on a control matrix.