Valley Publishing Company A Comprehensive Audit Case

A simulated audit of a small town newspaper publishing company designed to illustrate the principles of audit field work and basic workpaper preparation. The focus is on documentation for the achievement of audit objectives and on communication of findings. New to the 13th Edition: Improved grading templates and clarity throughout. Updates to student modules and instructor resources for the most recent accounting and auditing standards. Revised templates assist students in difficult areas. Use of the Case: The Case can be used to supplement textbook materials in an introductory auditing course. It also provides for a rigorous fast-paced experience in an advanced course where basic audit techniques are reinforced. The Case has been proven effective as the centerpiece of an advanced auditing course. Case modules help students to better understand how audit procedures are employed in an effective and efficient manner. Assignment modules can be done individually or in total to include preparation of the audit opinion and financial statements. Instructor materials provide detail guidance with suggestions about options for using the Case and a grading template. Completing the Case in a team setting provides the most realistic experience. Important Characteristics of the Case: The Case includes an initial assignment to help students gain an understanding of the “client” business and to identify important transactions. The assignment includes a review of minutes of board of director meetings and an assessment of internal controls, with optional steps to document procedures and controls with flowcharts. Widespread use of analytical review procedures throughout the case, which helps students learn audit efficiency, along with effectiveness techniques. Interesting and challenging optional assignments are included to identify fraud and support a fire loss claim to an insurance company. Assignments cover all major financial statement areas. Assignments include “work–done” memos to enhance communication skills. Includes an optional final assignment to prepare the audit opinion and financial statements, including footnote disclosures and a statement of cash flows. Prior year workpapers are included as a guide, but are not to be followed blindly. Students are encouraged to develop recommendations for a management letter. Student Materials Students receive a book (loose–leaf format) that includes the following: Section 1—A case narrative with instructions for each of 11 assignment modules. Section 2—The auditor′s Permanent File to include system narratives, flowcharts and minutes of the board of directors meetings. Section 3—A completed set of workpapers for the prior year, including financial statements. These are used as reference material to guide the current year audit, but the current year has some unusual transactions not encountered before. Section 4—Paper documents for use in the current year, such as confirmations and correspondence. Excel files of the prepared by client (PBC) workpapers, templates for the more difficult areas, client records and documents: Instructor Manual The instructor manual largely resembles a completed set of audit workpapers, including financial statements. The manual also includes guidance on administering the case and very detail grading templates for each assignment module. Suggestions are included for those wishing to skip some of the assignment modules.