Formulation Advances, Inc.

• In Event: Continental Breakfast & Research and Education Forum
  In Paper Session: Table 11: Instructional Cases

Abstract

In this case, Joe Verifier, an auditor working for a public accounting firm, is asked by his supervisor to research some audit and financial reporting issues for a new audit client. Issues include revenue recognition in multiple stage contracts, accounting for joint ventures, accounting for stock warrants, discontinued operations, and going concern issues. This case illustrates that, in completing a financial statement audit, auditors often need to research the proper treatment of complex transactions, formulate professional judgments, and document the results of their research and analysis for the audit files. By completing this case, students are exposed to this process in a way that fosters the development of critical thinking, research and professional writing skills.

Authors

• Jane Elizabeth Baird, Minnesota State University - Mankato

• Steven J Johnson, Minnesota State University, Mankato