Computerized Auditing Using ACL, 2nd Edition (2008)

Authors

Arens & Elder
ISBN# 978-0-912503-29-5

Computerized audit practice set, including and using an education version that is a fully operational version of ACL. It is the same as the commercially available ACL software except for the file capacity of each company.

The objective of these materials is to help students with an interest in auditing learn how to apply ACL audit software to solve audit problems. The materials are designed to first help students learn how to use ACL and then use the software on increasingly complex problems. Early chapters provide installation, familiarization and practice and are followed by four chapters of assignment and cases that require students to apply ACL. The first three of these later chapters are organized like most auditing texts: planning the audit, tests of transactions and tests of balances. The fourth is about forensic auditing.

Estimated completion time: 20-30 hours, with options for the Instructor to reduce time required.

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	Added Randall Elder as a coauthor. Randy has used ACL in his auditing classes for more than a decade, and stays current with both auditing issues and ACL uses in practice.
	Used version 9.0 of the ACL software.
	Added four application chapters later in the book that focus on areas where auditors most frequently use ACL. These four chapters are:
Using ACL for Audit Planning      Using ACL to Perform Tests of Transactions      Using ACL to Perform Tests of Balances      Using ACL for Forensic Auditing
	Added eight new companies and more than twenty new data sets for faculty to select to use as assignments.
	Changed the order of the chapters and eliminated two chapters with problems that were assimilated into the four new chapters.

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	Used by practitioners to solve audit problems.
	Used by thousands of internal and external auditors to perform a wide variety of data verification and analysis of data files and to create reports on the analysis. Used by:

		More than 215,000 professionals
		Thousands of organizations
		Hundreds of CPA firms
		Approximately 95% of Fortune 100 firms
		Many government and not-for-profit organizations

	The most widely used audit software in the world.
	Easy for students to learn when adequate instructions are provided.
	Students enjoy learning and applying the software when interesting and practical assignments are provided.

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Instructions & Assignments book. Includes instructions to students and assistance to complete each assignment correctly. All pages are tear outs to facilitate handing in and grading assignments, which are included on one-sided pages.

Reference Book. Provides detailed instructions to perform filters, computed fields, and all ACL commands. The Reference Book helps students complete assigned problems and cases efficiently, especially more complex ones.

Laminated Reference Guide. Assists students in deciding the appropriate commands for assignments and helps them find the appropriate page(s) in the Reference Book. It has two sides, one alphabetical and the other by categories of commands.

ACL Version 9 for Windows software on a CD. This is the same software sold by ACL to users throughout the world, but with a limit on the number of records that can be processed. The CD also includes all data files needed to complete the assignments.

Instructor's Guide & Solutions (Available to instructors only)

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	The only ACL audit application supplement published as a separate book.
	Developed to help students learn and feel comfortable using ACL by having them perform a wide variety of auditing tasks ranging from simple to complex.
	Materials go well beyond what is included in auditing texts, with detailed instructions and extensive assignment material.
	Materials include Instructions & Assignments book and a Reference book to help students better use the materials to solve audit problems.
	Divided into two sections: Students first learn the basics of ACL. They then apply their knowledge in chapters that tie into the three phases of the audit: audit planning, tests of controls and substantive tests of transactions, and tests of details of balances
	Includes a separate chapter on forensic auditing.
	Materials include eight different projects (companies) with more than 25 data sets, most of which were developed by the authors.
	Data sets, problems and cases vary from simple to complex.
	Developed for use with any auditing text.
	Suitable for use in a first or advanced auditing course after students understand basic auditing concepts.
	May also be used in a forensic accounting or fraud examination course.
	Can be effectively used without assistance from the instructor.
	Many optional assignments included.
	Materials developed to facilitate easy and effective grading.
	Instructors Guide & Solutions includes recommendations for using the materials.

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	Students learn material they can use on the job.
	Provides students an advantage in job placement with auditing firms.
	Students begin using the computer and ACL software within ten minutes of starting the project.
	Each student receives his or her own materials including written materials, software and data sets.
	Software is completely menu driven.
	Instructions and assignments are easy to follow.
	Extensive guidance is provided in early assignments, with little or none after students learn the ACL commands.
	Reference Book provides guidance to help students solve problems.
	Students learn both ACL and auditing concepts and applications.
	Students enjoy the project and find it interesting and challenging.
	The cost is reasonable for a supplement that includes software.

	Minimum or no class time needed unless the instructor so desires.
	Tear out sheets make grading practical and easy.
	Students enjoy the project and learn both ACL and auditing concepts.
	Detailed instructions are provided for assigning and grading.
	Faculty have flexibility in selecting assignments. Depending on assignments, total student time takes from 20 to 30 hours.

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All chapters include sufficient instructions, practice and reference materials to enable students to use ACL software and complete all assignments. Estimated time is included in parentheses.

Part I-Learning to Use ACL

Chapter 1-Introduction and Software Installation. Introduces ACL and provides an explanation and practice loading the software on student's computer. (1/2 hour)

Chapter 2-Familiarization. Students learn to use the software, including how to access ACL tables and become familiar with ways to interpret and change the appearance of information in tables. (1.5 to 2.5 hours)

Chapters 3 through 5-Practice Using Filters, Computed Fields and Commands. Students learn the key elements of ACL through a series of practice exercises applying filters, computed fields and all commands to a variety of audit situations, including relating files, investigative commands and sampling commands. (6-8 hours)

Chapter 6–Creating a New ACL Project and Creating ACL Tables to Access Clint Data Files. Teaches creating a new project for an audit and accessing client data files using ACL. ACL is capable of accessing a wide variety of data files. Excel, dbase-compatible, and one other less common file is included in the chapter. (1-2 hours)

Part II–Learning to Apply ACL to Different Parts of the Audit

Chapter 7–Using ACL for Audit Planning. Five assignments, each with a different project and data sets are available to select from to teach students how to use ACL to more effectively plan the audit. One assignment is in three parts and integrates planning with tests of controls, substantive tests of transactions and tests of details of balances. (2 to 3 hours)

Chapter 8–Using ACL to Perform Tests of Transactions. Four assignments, each with a different project and data sets are available to select from to teach students how to use ACL to do tests of controls and substantive tests of transactions. The assignments include tests of sales, cash receipts, acquisitions and payroll. (3 to 4 hours)

Chapter 9–Using ACL to Perform Tests of Balances. Four assignments, each with a different project and data sets are available to select from to teach students how to use ACL to more effectively perform tests of details of balances. The assignments include tests of inventory, accounts receivable and accounts payable. (2 to 4 hours)

Chapter 10–Using ACL for Forensic Auditing. Four assignments, each with a different project and data sets are available to select from to teach students how to use ACL to detect fraud by using ACL. The assignments include tests for both misappropriation of assets and fraudulent financial reporting. (3 to 5 hours)

Chapter 11–Reports. Deals with preparing customized reports including graphs. It includes four projects to help the students learn the material. (1 hour)

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Which course to use Computerized Auditing Using ACL

The materials are suitable for either a first undergraduate or graduate auditing course or an advanced undergraduate or graduate auditing course. The materials were written to be suitable for a first undergraduate auditing course, but they are also suitable for an advanced course.

Focus of the materials

ACL is suitable for financial auditing by CPA firms, internal auditors, or government auditors, or for operational auditing by internal or other auditors. Both types of uses are extensive in practice. These materials focus heavily on using ACL for financial auditing. The materials are intended to teach ACL, but also to teach and reinforce financial auditing concepts. Case three in Chapter 9 and a few other questions in the materials include operational auditing issues, but these materials are not suitable for use in an operational auditing course without significant supplements from other sources.

When to use the materials in a first undergraduate or graduated auditing course.

Students need to understand basic auditing concepts before starting Computerized Auditing Using ACL. These materials emphasize auditing applications and analysis starting in Chapter 2 and continuing throughout all chapters. It is most likely to be successful if the materials are assigned after students understand the following:

	Auditor responsibilities, including detection of errors and fraud
	Objectives of the audit
	Audit evidence, including analytical procedures
	Internal control and control risk
	Tests of controls and substantive tests
	Purposes and uses of audit programs

When to use the materials in a second undergraduate or graduate auditing course

It is appropriate to assign the materials any time after students have an understanding of basic financial auditing concepts included above. Instructor Involvement in the Project

The materials are intended to be self-explanatory with minimal involvement if that is what you choose. You can choose to spend time in class discussing the results and/or providing feedback by grading the assignments.

It is helpful at a minimum to convince students that it is worthwhile to learn the material and complete the project at a high quality. Following are some selling points that you can consider as you first discuss the project with students.

Individual or Group Assignments

Computerized Auditing Using ACL is most relevant and helpful to student learning when each student is required to do each part individually. Each student learns differently and at a different pace. It is essential that students learn how to use and apply ACL with minimal interference by other students who have varying skill levels, motivations, and group cooperation tendencies. The only assignments where group assignments are likely to be beneficial to student learning are the forensic auditing assignments in Chapter 10. Use of Tear Out Pages in the Instructions & Assignments Book

There are tear out pages for all assignments within each chapter after Chapter 1, except Chapter 11, which only has print requirements. The tear out pages are to be used by students to provide answers for the results of the commands and other activities they do and to answer questions related to auditing issues. The tear out pages makes it easy for students to organize their answers and for you to grade their results.
The solutions in the Instructor's Guide & Solutions book are organized exactly like the students' tear out sheets to make for easy grading. Individual Computer versus Laboratory Computer Use

Unless you inform them otherwise, students have two options in doing the project. It works well to permit each student to choose the option he or she prefers.

Option 1. A student uses his or her own computer. The instructions to students for this option are on pages 1-4 through 1-7 of Chapter 1 in the Instructions & Assignments book.

Option 2. A student uses a computer laboratory. Based on our experience it works best if the instructor deals with the computer laboratory at his or her college or university. In most cases there should be no problems if there are sufficient computers available for students' use.

Use on a Network

These materials are not designed for use on a network. Although this is not the preferred method for assigning the project, some instructors may be able to successfully install the software to their school's network. Armond Dalton Publishers and the authors are not able to help you with the use of ACL or these materials on a network.

Assignments

There are a variety of ways to assign the project, depending on whether you want students to do the project fairly quickly or spread it out over several weeks. Three different assignment schedules are included in the Instructor's Guide & Solutions book. The Instructor's Guide & Solutions also provides detailed discussion about each case to help you decide which assignments and cases to assign.

Grading. It is easy to grade the assignments if students turn in the tear out sheets for each chapter. The solutions in the Instructor's Guide & Solutions book match the tear out sheets, and also include suggested solutions. The only chapter for which there is nothing to grade is Chapter 1.

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