Where were the auditors? Using AAERs in introductory or advanced auditing courses

Abstract

► Instructions for use of a SEC Accounting and Auditing Enforcement Release assignment by instructors in Introductory or Advanced Audit Courses. ► Students have an opportunity to use knowledge they have gained from their auditing and other accounting courses. ► Students analyze what was done to cause the SEC to issue an AAER and what the external auditors could have done to prevent the AAER from happening. ► Students are able to practice their presentation skills. ► The assignment can lead to class discussion on ethics. I provide instructions for use of a Securities and Exchange Commission (SEC) Accounting and Auditing Enforcement Release (AAER) assignment by instructors in Introductory or Advanced Audit Courses. The assignment gives students an opportunity to use the knowledge they have gained from their auditing and other accounting courses. Students analyze what was done by individuals in a company to cause the SEC to issue an AAER and what the external auditors could have done to prevent the AAER from happening. A secondary feature of the assignment is that students are able to practice their presentation skills by presenting their analysis to their class members and instructor. The assignment can also lead to class discussion on ethics and what ethical dilemmas practicing auditors are faced with.