Students

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Students perceptions of the usefulness of an
audit simulationLen Steenkamp
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• Background
• Objectives
• The simulation
• Constraints to the simulation
• Previous studies
• Toyrama results
• Conclusion

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Background

• International calls for change
• Students lack experience
• Learn by doing
• South African Institute of Chartered Accountants
  (SAICA) syllabus

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Objectives

• Was the audit simulation valuable in developing
  certain competencies?
• Did the audit simulation contribute to students
  studies in different ways?
• What were the most important benefits derived
  from the simulation?
• What were the major constraints to the simulation?

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The simulation

• Audit of stock only Toyrama
• Focus on Information Technology techniques
• Large Microsoft Excel files
• Working papers
• Assessments

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Constraints to the simulation

• Simulated
• Time
• One element audited
• Information Systems

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Previous studies

• Arens, May Dominiak 1970
• Hoyle 1975
• Siegel, Omer Agrawal 1997
• Gelinas, Levy Thibodeau 2001
• Limited literature on students perceptions

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Findings from previous studies

• Valuable
• Better understanding
• Better performance
• Hit the ground running
• Criticism
• Time

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• Results from Toyrama questionnaire

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Respondent profile

• Response rate 81.5

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Usefulness for teaching competencies

• Insight into the practical operations of an audit
  84
• Interpret large volumes of data (defined as the
• ability to understand and decipher data) 83
• Relating theory in Auditing to real-life
  situations 81
• Ability to summarise data 74
• Integrating understanding of the different
  components of Auditing courses 73
• Encouraging students to apply their theoretical
  knowledge to new and unique situations 71

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Potential benefits
Number of students Percentage
Auditing is made more practical 205 63.9
Enhances the practical implementation and use of Excel 169 52.6
Applying theory in practical scenario 67 20.9
Integrating different subjects 58 18.1
Learned about working papers 45 14.0
Manipulation of large volumes of data, especially in Excel 46 14.3
Problem solving skills 43 13.4
Prepares better for working environment 25 7.8
Reduces the time spend studying for Auditing 12 3.7
Other 73 22.7
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Potential benefits (continued)

• Summary
• Practical exposure to realistic audit situations
  and the practical application of theory
• Enhanced utilisation of Information Technology
  tools
• Integration of different subjects

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Constraints
Number of students Percentage
The simulation takes a large amount of time 120 37.4
Other (see next slide) 156 48.6
Unclear objective or insufficient background information 63 19.6
No set way of doing things, no memorandum provided or too little notes 20 6.2
Not realistic enough 18 5.6
Working papers unknown to student 17 5.3
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Constraints (continued)

• Other
• Repetition of work previously covered
• Too much Auditing knowledge required
• Class attendance important to know how to
  approach project
• Waste of time / boring / not difficult enough
• All the information is given in class - too
  little chance to take initiative
• Lack of practical experience
• Each situation in practice is different and
  unique
• Database too large and impractical
• Lack of Excel skills

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Conclusion

• Goals of simulation met
• Valuable teaching tool
• Benefit students

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lsteenkamp_at_sun.ac.zaQuestions?
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