This 2003 PowerPoint presentation provides an excellent concise overview of a portion of the AICPA's SAS 99, Consideration of Fraud in a Financial Statement Audit. Topics covered include: professional skepticism, causes of misstatements, the fraud triangle, and 8 steps involved in considering the risk of fraud, to name a few. Eight summative review questions are included.
The purpose of this module is to provide a general outline of the process in which the auditor gathers information, assesses risks, and responds to results related to fraud investigation.
Target Student Population:
Accounting students enrolled in an AIS or auditing class.
Prerequisite Knowledge or Skills:
A very basic understanding of accounting and audit procedures including risk and evidence is necessary.
Type of Material:
The presentation has specifically been designed for use in higher education and instruction as a lecture/presentation. It could be used either in the class by the instructor or outside of the classroom by students as an introduction or review of the content. A disclaimer indicates the presentation is not intended for use in professional practice.
PowerPoint or a current browser with PowerPoint "viewer" capabilities.
Evaluation and Observation
This module is a very straightforward and understandable outline of the required procedures and documentation section of SAS 99. It is short and to the point, providing an excellent summary of the 29 page original pronoucement's major elements. Content both clear, accruate and adequate to cover basic concepts. It is informed by scholarship and both current and relevant.
Potential Effectiveness as a Teaching Tool
The presentation is very effective as a teaching and learning too, providing a clear understanding in a few minutes. Review questions are included at the end of the presentation as a form of summative assessment via discussion to reinforce learning. Instructors could easily develop an assignment to have students explore and locate examples of fraudulent financial reporting or missappropriation of asset schemes and implement the eight step process outlined.
Prerequisite knowledge is not identified nor objectives specifically identified. Both could easily be included as teaching notes to the title slide. Instructor context may be needed to define some terms and provide illustrations, e.g. elaborating on situations considered missappropriation of assets and fraudlent financial reporting.
Ease of Use for Both Students and Faculty
The presentation makes use of PowerPoint 2003's Blends design template. It is very easy to use for both instructors and students. It can be viewed online, saved to a hard drive and printed in various formats (slides or handouts).
Slides are basically text on a white background. The disclaimer is dedicated to a separate slide and would be better placed on the title page. Some text is positioned very close to the bottom of the slide and may need to be moved upward depending on classroom projection equipment placement. Interactivity is limited to the 8 review questions at the end of the presentation.
Other Issues and Comments:
This slide set covers the key components related to required procedures and documentation. It does not touch on the rationale for a new standard, the changed impact on the auditor, managements responsibilities, or criticisms. Since the focus of the presentation is providing an overview of SAS 99, no real-world examples have been included. It is an outline that should be supplemented by the instructor with examples and further explanations.