Product details

The following is an accounting case designed to integrate financial accounting and internal control principles with a practical business environment so that the relationships can be analyzed by accounting students. The case is designed for junior and senior level accounting students. The minimum level of accounting knowledge should be the completion of Financial Principles and the first semester/quarter of Intermediate Accounting so that students have been exposed to financial accounting and internal control rules. The case was created to fill a need of a large number of students who, even at the senior level, had not worked with scenarios sufficient to provide experience with 'big picture' accounting and business issues. Small businesses, especially as they begin operations, may employ relatively few employees and may experience difficulty with internal controls, including segregation of duties among employees, providing an environment contributing to employee fraud. The case provides insights at both fundamental and deeper levels on how financial information can contain indicators, ie danger signs, of which accountants and other users of financial information should be aware. Students must be able to analyze financial data based on relationships contained in the financial data and comparisons with other financial and business data to ascertain the accuracy of the financial statements and their component parts. The suggestion for the time required for solution by students is two hours for requirement one and another two hours for requirements two and three together for a total of four hours total for the three requirements. The three parts of the case can easily take another four hours for the instructor to discuss in class. Because of the time required to complete each part it is recommended the parts be assigned separately. It is also recommended part one be covered first as it is the most time consuming and requires the most comprehensive analysis of the three parts.