Super Shears: Micro Cases to Develop Expertise and Critical Thinking in Evaluating Audit Evidence for Management Estimates

• In Event: Continental Breakfast and Research & Education Forum
  In Paper Session: Table 13: Instructional Cases

Abstract

Audit cases typically require significant planning and work for both instructors and students, limiting how many practice rounds can be afforded in one semester. This set of micro cases provides authentic practice at auditing management estimates, a critical and difficult audit task. Further, the cases specifically cultivate the ability to find disconfirming evidence, targeting the perennial problem of “confirmation bias.” These two micro cases permit students to practice a difficult auditing task – auditing management estimates. The cases are designed to coach and then assess students’ ability to identify supporting and disconfirming evidence. In addition to correctly identifying evidence, students must use judgment to decide if, on balance, the financial statement amounts are fairly stated. These realistic tasks give students respect for the difficulty of determining client estimates and then auditing them, without creating a case that is overly difficult for novices. Further, by asking students to evaluate evidence and reach conclusions, we offer practice at core areas of critical thinking and audit judgment, abilities called for by the profession for decades and specifically required by the auditing profession.

Authors

• Carol Springer Sargent, Middle Georgia State College

• Carol C. Bishop, Georgia Southwestern State University