Teaching Students to Identify, Document, and Assess Internal Controls

Abstract

Abstract Accounting graduates today need to think critically and evaluate information effectively (Freeman, 2018, citing AICPA, 2016). In particular, accountants need to identify and document business processes and evaluate the associated internal controls. Reflecting these trends, the AICPA (2020) has significantly increased CPA exam coverage of business processes, risk identification, and internal control mapping. This semester-long case, in which students identify and flowchart a business process, uses experiential learning in three areas: internal controls, business-process analysis, and system documentation/flowcharting (Garnsey et al., 2019). It addresses the four key components of experiential learning: Do, Think, Reflect, and Apply; and includes practice in written and oral communication skills (Butler et al., 2019). Unlike many case studies that provide written process narratives, this case requires students to interact with an actual process owner. This interaction helps students develop interpersonal communication skills. Instructors can use this case at the undergraduate or graduate level in either an accounting information systems (AIS) or audit course.