demonstration of the audit simulation - susan whittaker and glenn duckworth
TRANSCRIPT
Demonstration of the Audit Simulation
Overview and introduction to audit planning stage of the audit
Glenn Duckworth, Learning Technologist, 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
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
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