Resumen de Introducing Students to the Integrated Audit with "Auditing Alchemy, Inc.".

Ulric J. (Joe) Gelinas Jr., David L. Schwarzkopf, Jay C. Thibodeau

• "Auditing Alchemy, Inc." is a comprehensive case developed by PricewaterhouseCoopers. "Alchemy" can help students understand the importance of Accounting Information Systems (AIS) concepts in an integrated audit of financial statements and internal controls. Through filmed interviews, a machine simulation, and documentation, Alchemy gives students a view of how general and process (application) controls are directed to achieving an organization's objectives, while also showing how auditors must use their AIS knowledge to gather evidence needed for the integrated audit. The Sarbanes-Oxley Act of 2002 (U.S. House of Representatives 2002) and actions of the Public Companies Accounting Oversight Board (PCAOB) emphasize the need for auditors to have a thorough grounding in the details of general and process (application) controls. This paper provides instructors with a structured way to address this need by presenting four coordinated assignments--three in AIS and one in auditing--using the Alchemy materials. The assignments take students in stages from a description of the process and controls at Alchemy to recommendations for improving the effectiveness of the design of the controls to finding evidence for evaluating the controls' operating effectiveness. Other aspects of the assignments focus on evaluating the likelihood of fraud at the company and ways of discussing controls with the audit committee.