Waste Is Our Business, Inc.: The importance of non-financial information in the audit planning process

Jeffrey Cohen, Ganesh Krishnamoorthy and Arnie Wright

Journal of Accounting Education, 2008, vol. 26, issue 3, 166-178

Abstract: The objectives of this case are: (a) to alert students to the importance of non-financial information in the audit process; (b) to develop students’ ability to search for relevant financial and non-financial information in the audit planning process; and (c) to emphasize the importance of resisting the natural tendency to over-rely on financial information when conducting the financial statement audit. Students are asked to consider both financial and non-financial information when evaluating a client’s account balances. The client is in the waste business where there are a number of market, regulatory, and political factors that may affect the valuation of different accounts. Students are also directed to consider the importance of non-financial information in the integrated audit mandated by PCAOB Standard 5 and in fraud detection. The case can help students learn to explicitly consider non-financial information and understand the significance of integrating such information with financial data. The case is suitable for use in undergraduate or graduate auditing and assurance courses.

Keywords: Risk assessment; Audit planning; Non-financial information (search for similar items in EconPapers)
Date: 2008
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Citations: View citations in EconPapers (3)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:joaced:v:26:y:2008:i:3:p:166-178

DOI: 10.1016/j.jaccedu.2008.08.004

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