AICPA Helps Educators Teach New Fraud Audit Standard
Materials have been developed by the AICPA to assist educators in teaching the newly issued Statement on Auditing Standards (SAS) No. 82, Consideration of Fraud in a Financial Statement Audit. This new Standard provides expanded operational guidance on the auditors consideration of material fraud in conducting a financial statement audit. It clarifies, but does not increase, the auditors responsibility to detect fraud. Auditors of financial statements should plan and perform the audit to obtain reasonable assurance that the statements are free of material misstatements, whether caused by error or fraud. The new standard, which supersedes SAS No. 53, The Auditors Responsibility to Detect and Report Errors and Irregularities, is effective for audits of financial statements for periods ending on or after December 15, 1997.
The materials developed by the Institute are appropriate for undergraduate or graduate level auditing courses and can be effectively implemented in either a 50- or a 75-minute class period. In addition to hard copies of the student and instructor materials, a disk with these files formatted in WordPerfect 6.1 is provided.
The student materials contain learning objectives, background discussion on the auditors responsibility for fraud, an outline of SAS No. 82, a short quiz and copies of instructor transparencies to reduce students need for note taking. The instructors manual features transparencies (which are also provided on diskette in PowerPoint), a copy of SAS No. 82, solutions to three fraud cases, answers to a short quiz and other background and resource materials.
The AICPA is mailing complete packages of educational materials to all auditing professors this month. Notifications of the availability of these materials will also be mailed to accounting program administrators.
View the student materials.
Special Committee on Assurance Services Publishes Report on AICPA Web site
The Special Committees "final" report on new and emerging CPA services for businesses and individuals is now up and running on AICPA Online (assurance). The Special Committee chose the electronic medium to underscore that its recommendations are intended to be a "living document" and because it would be the most efficient vehicle to update the profession at large on forward-looking trends and evolving market demands. Educators are encouraged to browse the site on a regular basis to stay informed on progress in the area of assurance services. The "web pages" of the report are organized under the Assurance Services section of AICPA Online. The index page of the report provides users with a detailed sitemap to the contents of the entire document, along with hyperlinks for direct access to any section for in-depth information on six assurance services.
To continue the work begun by the Special Committee, chaired by Robert K. Elliott, a new standing committee, the Assurance Services Committee (ASC), has been formed under the Institutes immediate past chair, Ron Cohen. This Committee will provide implementation guidance and serve as the launching platform for ongoing development and roll-out of additional assurance services. ASC will work via specialized, limited-life task forces. It will not issue authoritative standards and has no standard-setting authority. It does plan, however, to recommend development of additional "how-to" guidance in certain auditing areas.
ASC will also function as the focal point for the profession to exchange ideas and information on these services. The Assurance Services section on AICPA Online features a moderated discussion forum, "CPAs Discuss Assurance Services," led by K. Casey Bennett, AICPA Director of Assurance Services, who is responsible for developing and implementing these new service ideas. In addition, users will be able to e-mail questions and suggestions to him at kbennett@aicpa.org.
Academic Task Force Formed
To ensure that curriculum and research implications of assurance services are understood by and disseminated to academe, a task force of the Curriculum and Instruction in Accounting Education Subcommittee has also been formed. This task force is working in cooperation with a task force of the Auditing section of the American Accounting Association which is similarly addressing implications for auditing education. Preliminary plans of these task forces include publication of articles in Issues in Accounting Education and Auditing: A Journal of Practice and Theory. Sessions on assurance services are also planned for the AAA Annual Meeting this August in Dallas, Tex., and the AICPA Annual Accounting Educators Conference on November 7, 1997, in Chicago, Ill.
Members of the AICPA Assurance Services Task Force of the Curriculum and Instruction in Accounting Education Subcommittee are: Jack Wilkerson, Chair (Wake Forest University), Rick Tabor (Auburn University) and Dennis Hanno (University of Massachusetts at Amherst).
Conferences
The program for the 1997 AICPA Accounting Educators Conference to be held at the Wyndham Hotel in Northwest Chicago on November 7-8 is nearly finalized. The theme of the Conference is "changing expectations" for the profession and the classroom. The following sessions are planned: a keynote from a leading industry consultant on managing change; a panel of three big-six firms discussing new interviewing techniques used to hire staff based on desired competencies and performance-based evaluations; guidance on how to teach the new audit standard on fraud; educational implications of new assurance services; presentation of the 1997 winner of the Joint AICPA/AAA Collaboration Award; learning styles and working in group settings, real-world based cases jointly presented by academics and practitioners as well as some innovative examples of teaching techniques. In late August, educators will be mailed a brochure which further details the program and provides a registration form. A registration form will also be available in the next issue of the Education Supplement to be published in September. More information will also be posted on the "Just for Students and Educators" section of AICPA Online.
Activities of the AICPA Academic and Career Development Executive Committee
A past issue of this newsletter described the strategic plan of the Academic and Career Development Executive Committee which is focused on influencing change in business and accounting education to ensure that future CPAs are properly educated to meet the changing demands of the profession. Areas of this committees focus include technology, developing the concept of the CPA as a business advisor and strengthening alliances with other organizations to leverage products and services and avoid duplication of efforts.
Significant progress has been made in formalizing the Institutes relations and dialogue with the American Accounting Association. Efforts are focused on ensuring collaboration on common interests and activities.
The groundwork has also been laid to address technology and the business advisor concept with the formation of several task forces. The task force on "Integration of Technology into the Learning Experience," has been formed to identify opportunities for the Institute to provide support to faculty which will facilitate integration of information technology. For the purposes of this task force, technology is broadly defined as a teaching tool to enhance the effectiveness of the educational experience and, as a learning tool, through application by the students, that emphasizes the inherent link between technology and the ability to perform as a valued information professional. This task force is chaired by William W. Holder (University of Southern California) and its members are: Charles E. Davis (Baylor University), Dennis Fennessey (Deloitte & Touche), Jeffrey Porter (Porter & Associates), Marshall Romney (Brigham Young University), and Paul J. Steinbart (St. Louis University).
The task force, "Integrating A Business Advisor Focus into Accounting Education" has also been formed to identify and suggest activities and programs that the AICPA should consider to focus accounting academic preparation on the role of the accountant as a business advisor. Here, the business advisor role is defined as assisting managers in managing risk, opportunities and information needs. Chairing this task force is Kevin Stocks (Brigham Young University). Members of the task force are: Hubert D. Glover (Enterprise Advisory Services, Inc.), Donald W. Hunt (Anderson, Hunt & Company, P.C.), Joseph G. San Miguel (Amos Tuck School of Business), Laura L. Rice (Texas Instruments), and Paula B. Thomas (Middle Tennessee State University).
For more information, call Bea Sanders at 212/596-6218.
Innovations
The University of Virginias McIntire School of Commerce has completely revised its two-semester undergraduate intermediate financial accounting course to incorporate many of the recommendations of the Accounting Education Change Commission. Intermediate accounting is now taught using a business activity model (BAM) through which accounting issues are presented. The BAM describes the activities of a company during the first seven years of its life. The business begins as a service entity and later develops into a manufacturing and construction enterprise. The presentation of accounting topics parallels the financial accounting and reporting needs of the company from start-up to maturity. Business activities are documented in an electronic spreadsheet format that is released to students sequentially through personal computers. Working in groups, students are required to perform analytical reviews, correcting journal entries and prepare financial statements. They also must individually complete six take-Home projects to develop technical research skills. For more information, contact Anthony H. Catanack Jr., Ph.D., CPA, CMA, Assistant Professor McIntire School of Commerce, University of Virginia, ahc4n@virginia.edu
Wealth of Information for Accounting Students on AICPA Web site
The AICPA has enabled accounting students to get information directly on the Uniform CPA Examination as well as accounting careers through AICPA Online. In fact, the "Just for Students and Educators" section of the site (www.aicpa.org/edu/index.htm) is quite popular. With nearly 4,000 visitors in the month of March 1997 alone, this page is consistently in the top 10 list as far as "hits" to the Institute site.
Educators are urged to encourage their accounting students to surf the AICPA Web site to find answers to their frequently asked questions (FAQs) and also learn more about the Institute and professional developments. Perhaps student assignments which require browsing the site can be utilized to familiarize students with this resource. Often, the accounting student has a limited understanding of who the Institute is and what it does. By visiting the site, the student can obtain invaluable career guidance and information to better prepare themselves for their professional lives. The following is a sampling of the types of information students can find on AICPA Online and is organized by specific location on the site so that pages can be bookmarked for future reference.
Find on AICPA Online Home Page
About the AICPA
AICPA Values and Vision Statement
Summary of AICPA Operations
AICPA Mission Statement
AICPA Code of Professional Conduct and Bylaws
Whats Newexamples of recent topics include:
Assurance services
Center for Excellence For Financial Management
Top 10 Technologies for 1997
SAS No. 82 on Fraud
CPA Links (Gateway to other profession-related sites on the Internet)
Accounting and other associations
Federal Reserve Bank
U.S. Government
Securities Exchanges
State Boards of Accountancy
N.Y. Times
Washington Post
Wall Street Journal
Find Under "Just for Students and Educators" Section
About the CPA Exam
Uniform CPA Examination Candidate BrochureMay 1997
Information on CPA Exam Nondisclosure
Selected Questions and Unofficial Answers to the CPA Exam
Frequently Asked Questions (FAQs)
What is the Uniform CPA Exam?
What is the CPA and what are the requirements to become one?
What is the 150-hour education program and what states have the 150-hour education requirement?
What are the recommended areas of study to become a CPA?
What schools offer programs in accounting?
What scholarships are available for accounting study?
What accounting internships are available?
What collegiate societies are targeted to accounting?
What skills are needed to become a successful CPA?
What are some tips for writing a rsum and preparing for an interview?
What are the different career paths in accounting?
What are the job opportunities for accountants/CPAs?
How much do CPAs earn?
What student programs does the AICPA make available?
What student programs do the state CPA societies make available?
What are some of the professional organizations other than the AICPA and state societies?
What accounting/CPA career awareness materials are available from the AICPA?
Obtaining Other Supplements
To obtain other May supplements, or the supplements published in April, via fax dial 201/938-3787 from a fax machine and key in these numbers at the prompt (documents remain on faxback for two months after publication):
| May issue | | Apr. issue |
|---|
| Large Firms: 1550 | | Large Firms: 1558 |
| Medium Firms: 1551 | | Medium Firms: 1559 |
| Small Firms: 1552 | | Small Firms: 1560 |
| Business and Industry: 1553 | | Business and Industry: 1561 |
| Finance and Accounting: 1554 | | Finance and Accounting: 1562 |
| Internal Audit: 1555 | | Internal Audit: 1563 |
| Government: 1556 | | Government: 1564 |
| Education: 1557 | | Education: 1565 |
| Practice Alert: 1566 |
Note: A new Practice Alert was issued and covers deficiencies noted by the AICPA self-regulatory teams and by the US Department of Labor in employee benefits audits. It describes how to find guidance to avoid such deficiencies and how to obtain information on best practices in ERISA audits.
