IDEAS home Printed from https://ideas.repec.org/a/bla/acctfi/v62y2022is1p1307-1338.html
   My bibliography  Save this article

The use of case studies in developing students’ understanding of the concept ‘material misstatement’

Author

Listed:
  • Prerana Agrawal
  • Jacqueline Birt
  • Lyndie Bayne
  • Nikki Schonfeldt

Abstract

We investigate the use of an audit case study in developing students’ understanding of the key concept ‘material misstatement’. Using semantic differentials, we explore changes in connotative meaning (reflecting emotional reaction) of undergraduate students at an Australian university. Shifts in class perspective indicate students perceive the concept as more useful and less fluid after the case study. We contribute to the audit education literature by focusing on this complex concept and developing teaching methodologies to enhance students’ learning. Results support inclusion of comprehensive case studies embedded with judgement and decision making, in accounting curricula to enhance understanding of complex concepts.

Suggested Citation

  • Prerana Agrawal & Jacqueline Birt & Lyndie Bayne & Nikki Schonfeldt, 2022. "The use of case studies in developing students’ understanding of the concept ‘material misstatement’," Accounting and Finance, Accounting and Finance Association of Australia and New Zealand, vol. 62(S1), pages 1307-1338, April.
    • Handle: RePEc:bla:acctfi:v:62:y:2022:i:s1:p:1307-1338
    DOI: 10.1111/acfi.12824
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/acfi.12824
    Download Restriction: no
    File URL: https://libkey.io/10.1111/acfi.12824?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Hronsky, Jane J. F. & Houghton, Keith A., 2001. "The meaning of a defined accounting concept: regulatory changes and the effect on auditor decision making," Accounting, Organizations and Society, Elsevier, vol. 26(2), pages 123-139, March.
    2. Gordon Boyce & Sarah Williams & Andrea Kelly & Helen Yee, 2001. "Fostering deep and elaborative learning and generic (soft) skill development: the strategic use of case studies in accounting education," Accounting Education, Taylor & Francis Journals, vol. 10(1), pages 37-60.
    3. Dessalegn Getie Mihret & Nadana Abayadeera & Kim Watty & Jade McKay, 2017. "Teaching auditing using cases in an online learning environment: the role of ePortfolio assessment," Accounting Education, Taylor & Francis Journals, vol. 26(4), pages 335-357, July.
    4. Carpenter, Brian W. & Dirsmith, Mark W., 1992. "Early debt extinguishment transactions and auditor materiality judgments: A bounded rationality perspective," Accounting, Organizations and Society, Elsevier, vol. 17(8), pages 709-739, November.
    5. Margaret Healy & Maeve McCutcheon, 2010. "Teaching with Case Studies: An Empirical Investigation of Accounting Lecturers' Experiences," Accounting Education, Taylor & Francis Journals, vol. 19(6), pages 555-567.
    6. Niamh Brennan & Sidney J. Gray, 2005. "The Impact of Materiality: Accounting's Best Kept Secret," Asian Academy of Management Journal of Accounting and Finance (AAMJAF), Penerbit Universiti Sains Malaysia, vol. 1(1), pages 1-30.
    7. Keith A. Houghton & Christine Jubb & Michael Kend, 2011. "Materiality in the context of audit: the real expectations gap," Managerial Auditing Journal, Emerald Group Publishing, vol. 26(6), pages 482-500, June.
    8. Trevor Hassall & Markus Milne, 2004. "Using case studies in accounting education," Accounting Education, Taylor & Francis Journals, vol. 13(2), pages 135-138.
    9. Takiah Mohd Iskandar & Errol R Iselin, 1999. "A review of materiality research," Accounting Forum, Taylor & Francis Journals, vol. 23(3), pages 209-239, September.
    10. Michael Kend & IIias Basioudis, 2018. "Reforms to the Market for Audit and Assurance Services in the Period after the Global Financial Crisis: Evidence from the UK," Australian Accounting Review, CPA Australia, vol. 28(4), pages 589-597, December.
    11. Javed Siddiqui & Taslima Nasreen & Aklema Choudhury-Lema, 2009. "The audit expectations gap and the role of audit education: the case of an emerging economy," Managerial Auditing Journal, Emerald Group Publishing, vol. 24(6), pages 564-583, June.
    12. Jill Webb & Caroline Chaffer, 2016. "The expectation performance gap in accounting education: a review of generic skills development in UK accounting degrees," Accounting Education, Taylor & Francis Journals, vol. 25(4), pages 349-367, July.
    13. Akhilesh Chandra & Thomas G. Calderon, 2009. "Information intensity, control deficiency risk, and materiality," Managerial Auditing Journal, Emerald Group Publishing, vol. 24(3), pages 220-232, March.
    14. Jean Ingersoll Abbott & Barry R. Palatnik, 2018. "Students’ perceptions of their first accounting class: implications for instructors," Accounting Education, Taylor & Francis Journals, vol. 27(1), pages 72-93, January.
    15. Jenna Chaffey & Karen Van Peursem & Mary Low, 2011. "Audit Education for Future Professionals: Perceptions of New Zealand Auditors," Accounting Education, Taylor & Francis Journals, vol. 20(2), pages 153-185.
    16. Julie Drake, 2011. "Adding Value to Audit Education through 'Living' Cases," Accounting Education, Taylor & Francis Journals, vol. 20(2), pages 203-222.
    17. Peggy Coady & Seán Byrne & John Casey, 2018. "Positioning of emotional intelligence skills within the overall skillset of practice-based accountants: employer and graduate requirements," Accounting Education, Taylor & Francis Journals, vol. 27(1), pages 94-120, January.
    18. Flamholtz, Eric & Cook, Ellen, 1978. "Connotative meaning and its role in accounting change: A field study," Accounting, Organizations and Society, Elsevier, vol. 3(2), pages 115-139, June.
    19. Agrawal, Prerana & Hancock, Phil, 2012. "Deimante Ltd.: Case study for introductory auditing course," Journal of Accounting Education, Elsevier, vol. 30(3), pages 355-379.
    20. Spires, Eric E. & Ward, C.J., 2015. "A classroom example of the deleterious effects of auditor predictability," Journal of Accounting Education, Elsevier, vol. 33(1), pages 36-49.
    21. Margaret Healy & John Doran & Maeve McCutcheon, 2018. "Cooperative learning outcomes from cumulative experiences of group work: differences in student perceptions," Accounting Education, Taylor & Francis Journals, vol. 27(3), pages 286-308, May.
    22. Ian Dennis, 2003. "OK in practice - and theory," Accounting Education, Taylor & Francis Journals, vol. 12(4), pages 415-426.
    23. Cipriano, Michael & Hamilton, Erin L. & Vandervelde, Scott D., 2016. "Newport Soup Inc.: An interactive inherent risk assessment case," Journal of Accounting Education, Elsevier, vol. 37(C), pages 13-23.
    24. Diaz, Michelle Chandler, 2016. "Assembling the opinion: An active learning exercise for audit students," Journal of Accounting Education, Elsevier, vol. 34(C), pages 30-40.
    25. Klaus Ruhnke & Martin Schmidt, 2014. "The audit expectation gap: existence, causes, and the impact of changes," Accounting and Business Research, Taylor & Francis Journals, vol. 44(5), pages 572-601, October.
    26. Houghton, Keith A., 1988. "The measurement of meaning in accounting: A critical analysis of the principal evidence," Accounting, Organizations and Society, Elsevier, vol. 13(3), pages 263-280, April.
    27. Apostolou, Barbara & Dorminey, Jack W. & Hassell, John M. & Rebele, James E., 2017. "Accounting education literature review (2016)," Journal of Accounting Education, Elsevier, vol. 39(C), pages 1-31.
    28. Graeme Wines, 2011. "Auditor independence: Shared meaning between the demand and supply sides of the audit services market?," Managerial Auditing Journal, Emerald Group Publishing, vol. 27(1), pages 5-40, November.
    29. Christensen, Brant E. & Eilifsen, Aasmund & Glover, Steven M. & Messier, William F., 2020. "The effect of audit materiality disclosures on investors’ decision making," Accounting, Organizations and Society, Elsevier, vol. 87(C).
    30. Josephine Maltby, 2001. "Second thoughts about ' Cases in Auditing '," Accounting Education, Taylor & Francis Journals, vol. 10(4), pages 421-428.
    31. Sidney Weil & Peter Oyelere & Joanna Yeoh & Colin Firer, 2001. "A study of students' perceptions of the usefulness of case studies for the development of finance and accounting-related skills and knowledge," Accounting Education, Taylor & Francis Journals, vol. 10(2), pages 123-146.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Chiang, Christina & Wells, Paul K. & Xu, Gina, 2021. "How does experiential learning encourage active learning in auditing education?," Journal of Accounting Education, Elsevier, vol. 54(C).
    2. Richard Slack & Jan Loughran & Kirsty Abrahams, 2014. "Corporate Associate Partnerships: Practitioners' Involvement in the Delivery of an Auditing Course Based on a Case-Study: A Teaching Resource," Accounting Education, Taylor & Francis Journals, vol. 23(3), pages 262-276, June.
    3. Christina Chiang & Paul K. Wells & Peter Fieger & Divesh S. Sharma, 2021. "An investigation into student satisfaction, approaches to learning and the learning context in Auditing," Accounting and Finance, Accounting and Finance Association of Australia and New Zealand, vol. 61(1), pages 913-936, March.
    4. Apostolou, Barbara & Dorminey, Jack W. & Hassell, John M. & Hickey, Anna, 2019. "Accounting education literature review (2018)," Journal of Accounting Education, Elsevier, vol. 47(C), pages 1-27.
    5. Tony Mortensen & Richard Fisher, 2011. "The meaning of cash in the context of alternative accounting standards," Accounting Research Journal, Emerald Group Publishing Limited, vol. 24(1), pages 23-49, July.
    6. Edgley, Carla, 2014. "A genealogy of accounting materiality," CRITICAL PERSPECTIVES ON ACCOUNTING, Elsevier, vol. 25(3), pages 255-271.
    7. Apostolou, Barbara & Dorminey, Jack W. & Hassell, John M. & Watson, Stephanie F., 2013. "Accounting education literature review (2010–2012)," Journal of Accounting Education, Elsevier, vol. 31(2), pages 107-161.
    8. Sami El Omari & Mohamed Taieb Hamadi & Wafa Khlif, 2016. "La diversité des sources d'interprétation et d'application des normes comptables internationales ; un frein à la convergence de la pratique," Post-Print hal-01900554, HAL.
    9. Edgley, Carla & Jones, Michael J. & Atkins, Jill, 2015. "The adoption of the materiality concept in social and environmental reporting assurance: A field study approach," The British Accounting Review, Elsevier, vol. 47(1), pages 1-18.
    10. George Silviu CORDOŞ & Melinda Timea FÜLÖP, 2020. "Debates In The Literature Regarding Audit Reporting," Annales Universitatis Apulensis Series Oeconomica, Faculty of Sciences, "1 Decembrie 1918" University, Alba Iulia, vol. 1(22), pages 1-4.
    11. Barbara Weißenberger & Gero Holthoff, 2013. "Cognitive style and connotative meaning in management accounting communication," Metrika: International Journal for Theoretical and Applied Statistics, Springer, vol. 24(1), pages 1-25, May.
    12. Taslima Akther & Xu Fengju & Md Ziaul Haque, 2019. "An Investigation ofAudit Expectation Gap in Bangladesh," Journal of Business, LAR Center Press, vol. 4(2), pages 1-11, February.
    13. Gary Spraakman & Beverley Jackling, 2014. "A Conceptual Framework for Learning Management Accounting," Accounting Perspectives, John Wiley & Sons, vol. 13(1), pages 61-81, March.
    14. Raul David & Indra Abeysekera, 2021. "Auditor Judgements after Withdrawal of the Materiality Accounting Standard in Australia," JRFM, MDPI, vol. 14(6), pages 1-20, June.
    15. Jose Luis Arquero Montano & Sergio Manuel Jimenez Cardoso & John Joyce, 2004. "Skills development, motivation and learning in financial statement analysis: an evaluation of alternative types of case studies," Accounting Education, Taylor & Francis Journals, vol. 13(2), pages 191-212.
    16. Tian, Yan & Zhou, Hui, 2015. "From bottom line to consumers’ mind: The framing effects of accounting information," Accounting, Organizations and Society, Elsevier, vol. 43(C), pages 56-66.
    17. Xiao, Xinning & Shailer, Greg, 2022. "Stakeholders’ perceptions of factors affecting the credibility of sustainability reports," The British Accounting Review, Elsevier, vol. 54(1).
    18. Ralph Adler & Rosalind Whiting & Kate Wynn-Williams, 2004. "Student-led and teacher-led case presentations: empirical evidence about learning styles in an accounting course," Accounting Education, Taylor & Francis Journals, vol. 13(2), pages 213-229.
    19. Ozlanski, Michael E. & Seymoure, Suzanne, 2021. "Conducting a physical inventory of McIntyre Organics: Bringing real-life experiences to the classroom," Journal of Accounting Education, Elsevier, vol. 56(C).
    20. Jordan Famularo, 2023. "Corporate social responsibility communication in the ICT sector: digital issues, greenwashing, and materiality," International Journal of Corporate Social Responsibility, Springer, vol. 8(1), pages 1-25, December.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:acctfi:v:62:y:2022:i:s1:p:1307-1338. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: https://edirc.repec.org/data/aaanzea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.