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Demonstration of the Audit Simulation Overview and introduction to audit planning stage of the audit Glenn Duckworth, Learning Technologist, UWE

Demonstration of the audit simulation - Susan Whittaker and Glenn Duckworth

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Demonstration of the Audit Simulation

Overview and introduction to audit planning stage of the audit

Glenn Duckworth, Learning Technologist, UWE

The UWE Audit Simulation

Developed by

Dr Susan Whittaker &

Glenn Duckworth, UWE

Creating the simulation - tools

+

Sheridan AV’s main building

Avatars – Sheridan AV staff

+ MS Excel & MS Word & PowerPoint

- company accounts - Sheridan documents,

e.g. delivery notes, invoices

- Visual representation of company procedures

A ‘virtual desk’: - Storage of: - e-documents

(virtual filing cabinet)

- Audio/video resources (media storage system)

& web pages

The auditing company and virtual desk • Alex Gold Financial Services:

Graeme Moore – the virtual audit team leader:

• The virtual desk:

Sheridan AV Staff

• 20 characters developed

• Each character represented by an avatar in Second Life

• Each character has a specific role in the Sheridan company...

Sheridan AV Staff

• David has been running the business for the last sixteen years, having taken over from his father, John who retired due to ill health. He graduated with a first class degree in Business Studies at the age of 22.

• At the age of 29 he enrolled on a part time MBA degree but did not complete the course due to work pressures when taking over the business. Since then he has developed an interest in the arts and appreciates classical music and modern art.

• He also likes Formula 1 racing and often goes to races with his good friend James Clark.

• He is the majority shareholder with 75% of the share capital. He is extremely good at generating new business and believes that entertaining business contacts is an extremely important aspect of his role.

David Sheridan – Managing Director

Sheridan AV Staff

• Rob left school at 16 and has had a number of jobs since then. He joined Sheridan AV two years ago. He failed most of his exams at school but has decided that he would like to do a degree at University at some point, and is attending night school to get the appropriate qualifications.

• Although Peter Fillion is in charge of warehousing, Rob does most of the day to day running of the department. He generally has to do most of the warehouse/stockroom inventory. Peter is in charge of deliveries, but in practice, Rob generally does the paperwork and arranges the delivery. He is also generally the person who receives goods coming in.

• Rob feels that his manager is asking him to do too much for too little money and is considering leaving the company. He has discussed this with Peter, but Peter says that there is no point asking for more money.

Rob Cole – Warehouse Assistant

Sheridan AV Staff

• At the age of 23 Rosie graduated with a degree in Finance and Accounting and became a chartered certified accountant three years later. She has been working at Sheridan AV for ten years. She is very process driven, works hard and is always busy.

• David Sheridan, the MD, sees her as role in the company as pivotal. He delegates a large part of his work to her and relies on her when he is away on business trips.

• She is line manager to all of the administrative and finance staff. Most of her staff believe she is a good and knowledgeable manager and get along well with her. However a few believe that her work practices are out of date and that some Continuing Professional Development (CPD) courses would be useful.

• Rosie enjoyed her time at university and believes her degree prepared her well for her job. She is reluctant to attend further training courses. She is very committed to the company and has an ambition to become a director one day.

Rosie Hendricks – Accounts/Admin Manager

Senior Management

David Sheridan MD

Emily Winters Sales Director

James Clark Finance Director

Leanne Sheridan Company Secretary

Sheridan AV Staff

Accounts & Administration

Rosie Hendricks Accounts Manager

Mark Avon Cashbook

Margaret Blake Sales Ledger

Jay Alexander Payroll

Jenna Jackson Purchase Ledger

Olivia Reynolds Secretary

Kara Hampton Admin Assistant

Zoe Patton Office Junior

Sheridan AV Staff

Sales, Production & Warehousing

Harry Washburn Sales Manager

Daisy Sinclair Sales Assistant

Dan Sheppard Sales Assistant

Jane Darrow Production Manager

Martin Sheridan Production Assistant

Peter Fillion Warehouse

Manager

Rob Cole Warehouse

Assistant

Sheridan AV Staff

Sheridan AV premises

Outside the main building

Sheridan AV premises

Outside the main building

Sheridan AV premises

The retail shop

Sheridan AV premises

The warehouse

Sheridan AV premises

The workshop area

Sheridan AV premises

The Accounts Office

Sheridan AV premises

The MD’s office

The Sheridan AV web site

• Information about the company

• Product range

• Contact information

The Sheridan AV web site

The Sheridan AV web site

The Sheridan AV web site

The Sheridan AV web site

Sales and purchasing processes

• Created presentations to help visualise the systems and processes in use at Sheridan...

In the warehouse, Rob identifies the stock items in the order and annotates the order to show whether the goods are in stock or not.

If they are not in stock then the sales department are notified…

Sales Assistant – Daisy Sinclair

Warehousing/Distribution Assistant – Rob Cole

Rob will then instigate the purchase requisition cycle to bring the goods into stock and satisfy the order.

… they make a note on the order and advise the customer..

Requisition cycle

Customer

Pre-numbered

Customer details

Details of goods ordered

Prices with and without tax

Documents in the simulation

• Sales orders

•Goods delivery notes

• Sheridan invoices

• Purchase

requisitions

• Purchase orders

• Goods received

notes

• Supplier invoices

• Minutes of

meetings

• Staff memos

• Bank statements

• Business tax bill

etc.

Sales process –

e.g.

Purchasing

process – e.g.

Supporting

docs – e.g.

Company accounts

Recorded interviews with Sheridan staff

• A set of interviews on video which students analysed – Provided as video and transcripts