Wealthy Watches Inc.: The Substantive Testing of Accounts Receivable in the Evolving Audit Environment

Andiola, Lindsay M.; Downey, Denise; Earley, Christine E.; Jefferson, Devon

doi:10.2308/issues-2020-037

Cited by 3 publications

(2 citation statements)

References 16 publications

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“…One way in which they have fused theoretical and practical concepts is by exploring major events in the profession as a lens for scrutinizing auditor performance (McKenna et al 2023;Pope 2023;Wald 2023). Another method is to utilize technological tools in classroom activities (Cunningham and Stein 2018;Andiola et al 2022). Finally, educators have incorporated examples of professional auditing activities into classroom learning exercises (Hanes et al 2014;Andiola et al 2018).…”

Section: Introductionmentioning

confidence: 99%

“…By identifying outliers in a client's daily revenue reports, students can improve upon traditional sampling analysis by identifying specific observations for testing. Wealthy Watches (Andiola et al 2022) leverages multiple technology tools as part of its audit testing procedures. First, students use the Interactive Data Extraction and Analysis (IDEA) data analysis tool to prepare a sample for accounts receivable testing.…”

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confidence: 99%

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Sparked Intuition Power: An Audit Risk Activity

Barnes,

Enget,

Heberer

2024

JRFM

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This case explores the subjective nature of professional judgment related to audit risk through the lens of a fictitious company, Sparked Intuition Power (SIP). SIP has just been accepted as a new audit client by an international accounting firm. Students play the role of associates on the audit engagement team. As part of their work on the audit, the students identify potential risks present at SIP as part of the initial risk assessment process. Once these risks have been identified, the students decide how to assess the potential severity of each risk and determine the resulting effect on the overall auditor workload. Through interaction and discussion with their instructors, the students should be better able to navigate the decision-making process related to risk evaluation in an audit engagement.

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Section: Introductionmentioning

confidence: 99%

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confidence: 99%

Sparked Intuition Power: An Audit Risk Activity

Barnes,

Enget,

Heberer

2024

JRFM

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Framework for Integrating Generative AI in Developing Competencies for Accounting and Audit Professionals

Anica-Popa,

Vrîncianu,

Anica-Popa

et al. 2024

Electronics

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The study aims to identify the knowledge, skills and competencies required by accounting and auditing (AA) professionals in the context of integrating disruptive Generative Artificial Intelligence (GenAI) technologies and to develop a framework for integrating GenAI capabilities into organisational systems, harnessing its potential to revolutionise lifelong learning and skills development and to assist day-to-day operations and decision-making. Through a systematic literature review, 103 papers were analysed, to outline, in the current business ecosystem, the competencies’ demand generated by AI adoption and, in particular, GenAI and its associated risks, thus contributing to the body of knowledge in underexplored research areas. Positioned at the confluence of accounting, auditing and GenAI, the paper introduces a meaningful overview of knowledge in the areas of effective data analysis, interpretation of findings, risk awareness and risk management. It emphasizes and reshapes the role of required skills for accounting and auditing professionals in discovering the true potential of GenAI and adopting it accordingly. The study introduces a new LLM-based system model that can enhance its GenAI capabilities through collaboration with similar systems and provides an explanatory scenario to illustrate its applicability in the accounting and audit area.

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Improvement of accounting and tax accounting of receivables

Stender¹

2023

Scientific Bulletin of Mukachevo State University Series “Economics”

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The relevance of this study is determined by the fact that the importance of effective management of receivables for ensuring financial stability is considered. Reducing the risk of insolvency, improving liquidity, increasing current assets, strengthening trust and reputation, as well as macroeconomic impact are the key mechanisms through which effective management of receivables contributes to the financial stability of enterprises and the country as a whole. The purpose of this study was to find ways to improve work with receivables of enterprises operating in the Khmelnytskyi region of Ukraine. As a work methodology, such research tools as analysis, synthesis, and PESTEL analysis were chosen. The results of the study demonstrated that it is critically important for any enterprise to be able to efficiently record its receivables to avoid the risk of receiving tax fines and interest charges. By implementing new mechanisms for improving accounts receivable accounting, enterprises can obtain more accurate financial reporting, improve cash flow management, ensure timely payment of services and goods from customers, improve compliance with Ukrainian tax legislation, which leads to an increase in their economic efficiency. Accounting for receivables also considers the accounting of customers’ credit ratings, which gives companies an idea of the areas of development and serves as the basis for work on managing funds. Moreover, a well-established business process, from the standpoint of avoiding the appearance of debts due to the improvement of tax and accounting, can also help the government of Khmelnytskyi region to collect taxes more effectively (timely and in full) and promote the development of public infrastructure and the provision of services in the region. The significance of the obtained results lies in the potential contribution to the construction of a stronger and more stable financial system of the Khmelnytskyi region

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Wealthy Watches Inc.: The Substantive Testing of Accounts Receivable in the Evolving Audit Environment

Cited by 3 publications

References 16 publications

Sparked Intuition Power: An Audit Risk Activity

Sparked Intuition Power: An Audit Risk Activity

Framework for Integrating Generative AI in Developing Competencies for Accounting and Audit Professionals

Improvement of accounting and tax accounting of receivables

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