Simply Soups Inc.: A Teaching Case Designed to Integrate the Electronic Confirmation Process into the Financial Statement Auditing Curriculum

• In Event: Breakfast and Research Forum
  In Roundtable Session: Table 12: Teaching Cases

Abstract

The purpose of this teaching case is to provide an approach for educators to impart critical knowledge about the use of electronic confirmations by auditors into the financial statement auditing curriculum. From the time that Bank of America advised public accounting firms in 2008 that it would accept and respond only to electronic confirmation requests for domestic depository and commercial loan accounts, the importance to educate future auditors regarding the use of electronic confirmations has become imperative (Boomer 2010). Indeed, many public accounting firms frequently use electronic audit confirmations when testing the cash balance. Importantly, after completing the Simply Soups Inc. case assignment, a total of 141 students at two separate universities provided feedback about the materials. The results of the student questionnaire were overwhelmingly positive and provide evidence that validates the use of this case assignment in the financial statement auditing class. We therefore urge instructors at other institutions to give strong consideration to adopting this case in their own financial statement auditing class.

Authors

• Denise Ryan Hanes, Bentley University

• Barbara Marie Porco, Fordham University

• Jay C. Thibodeau, Bentley University