Waste Is Our Business,Inc.: The importance of non-financial information in the audit planning process |
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Authors: | Jeffrey Cohen Ganesh Krishnamoorthy Arnie Wright |
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Institution: | 1. Boston College, Carroll School of Management, Chestnut Hill, MA 02167, United States;2. Northeastern University, College of Business Administration Boston, MA 02155, United States |
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Abstract: | The objectives of this case are: (a) to alert students to the importance of non-financial information in the audit process; (b) to develop students’ ability to search for relevant financial and non-financial information in the audit planning process; and (c) to emphasize the importance of resisting the natural tendency to over-rely on financial information when conducting the financial statement audit. Students are asked to consider both financial and non-financial information when evaluating a client’s account balances. The client is in the waste business where there are a number of market, regulatory, and political factors that may affect the valuation of different accounts. Students are also directed to consider the importance of non-financial information in the integrated audit mandated by PCAOB Standard 5 and in fraud detection. The case can help students learn to explicitly consider non-financial information and understand the significance of integrating such information with financial data. The case is suitable for use in undergraduate or graduate auditing and assurance courses. |
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Keywords: | Risk assessment Audit planning Non-financial information |
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