Who's in Control of the Ark? A Study of Internal Controls in Operating and Auditing A Small Preschool
Publication Date
May 2019
Document Type
Article
Publication Title
Issues in Accounting Education
Volume
34
Issue
2
DOI
10.2308/iace-52375
First Page
23
Last Page
39
Abstract
This instructional case encourages analytical thinking about internal controls in both the operations and audit of a small, not-for-profit organization. Students examine a control environment characterized by unauthorized expenditures, lack of documentation, and missing documents. Using the COSO (2013) framework, students demonstrate understanding of business processes as they identify internal control risks and deficiencies, and recommend control improvements. Auditing students additionally apply management assertions about financial transactions and assess auditor independence. Students gain practical experience in developing flowcharts of accounting processes and writing a management letter for a familiar organization: a preschool.
Keywords
instructional case, internal control, flowcharts, cash auditing, not-for-profit controls, auditor independence
Recommended Citation
Elizabeth Grace and Ashley Davis. "Who's in Control of the Ark? A Study of Internal Controls in Operating and Auditing A Small Preschool" Issues in Accounting Education (2019): 23-39. https://doi.org/10.2308/iace-52375
