Understanding, Evaluating, and Monitoring Internal Control Systems: A Case and Spreadsheet Based Pedagogical Approach

Abstract

ABSTRACT This paper describes a case approach for teaching internal control evaluation (ICE) using an Excel spreadsheet patterned after software from Grant Thornton LLP (Grant) named INFOCUS. Although INFOCUS is not used or supported anymore by Grant, it was used for many years in training and development for ICE theory and application at the firm. Grant allows use of their software and approach for classroom use. From a conceptual pedagogy perspective, this approach is still applicable to current practice standards and guidelines for ICE and provides a systematic application to help students take the role of an auditor to document the accounting system, document the controls, select key controls, and make the preliminary control risk assessment. The case and spreadsheet application can also be applied to the COSO 2013 Framework focusing mostly on Risk Assessment, Control Activities, and Monitoring Activities to internal control systems. The spreadsheet application can accommodate cases that provide diffe...