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

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  • Hansen, James C.

Abstract

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.

Suggested Citation

  • Hansen, James C., 2010. "Where were the auditors? Using AAERs in introductory or advanced auditing courses," Journal of Accounting Education, Elsevier, vol. 28(2), pages 114-127.
    • Handle: RePEc:eee:joaced:v:28:y:2010:i:2:p:114-127
    DOI: 10.1016/j.jaccedu.2011.03.005
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    References listed on IDEAS

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    1. Haywood, M. Elizabeth & Wygal, Donald E., 2009. "Ethics and professionalism: Bringing the topic to life in the classroom," Journal of Accounting Education, Elsevier, vol. 27(2), pages 71-84.
    2. Brucker, William G. & Rebele, James E., 2010. "Fraud at a public authority," Journal of Accounting Education, Elsevier, vol. 28(1), pages 26-37.
    3. Patricia M. Dechow & Richard G. Sloan & Amy P. Sweeney, 1996. "Causes and Consequences of Earnings Manipulation: An Analysis of Firms Subject to Enforcement Actions by the SEC," Contemporary Accounting Research, John Wiley & Sons, vol. 13(1), pages 1-36, March.
    4. Feroz, Eh & Park, K & Pastena, Vs, 1991. "The Financial And Market Effects Of The Secs Accounting And Auditing Enforcement Releases," Journal of Accounting Research, John Wiley & Sons, Ltd., vol. 29, pages 107-142.
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    1. 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.
    2. Gilbertson, David & Herron, Terri, 2014. "Including audit regulation in the accounting curriculum," Research in Accounting Regulation, Elsevier, vol. 26(1), pages 118-131.

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