Inventory analytics: A teaching case using excel and Alteryx

Jenny Parlier and Lorraine Lee

Journal of Accounting Education, 2023, vol. 63, issue C

Abstract: The emergence of big data and analytics has motivated the audit profession to incorporate additional business analytical procedures into existing auditing processes. In response, educators must find ways to integrate data analytics into existing audit curriculum to prepare students for the audit profession. One possible way to integrate analytics into the audit curriculum is to supplement the teaching of traditional audit topics with data analytics case studies. The purpose of this paper is to describe a teaching case that integrates the auditing topics of inventory and fraud with basic data analytics. We develop a teaching case motivated by practice that describes an Excel-based fraud related to the audit of inventory. As Excel remains a common tool for accounting analytics, as well as a common format for data exchange between the auditor and client, the case begins with data analysis using Excel. After completing the initial Excel analysis, you perform a similar analysis using a more advanced analytics tool (Alteryx), which provides you an opportunity to use a new tool to detect the spreadsheet irregularities. The case concludes with you assessing the advantages and disadvantages of Alteryx versus Excel. As the context of this case is the audit of inventory, the case is especially suited for use in an audit class when covering the financial statement area of inventory. Alternatively, this case can be used in an accounting analytics class to introduce advanced analytics tools using a real-world audit setting.

Keywords: Inventory testing; Inventory fraud; Audit analytics. (search for similar items in EconPapers)
Date: 2023
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Citations: View citations in EconPapers (4)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:joaced:v:63:y:2023:i:c:s0748575123000209

DOI: 10.1016/j.jaccedu.2023.100848

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