（2008）Due Diligence on Fast-Fashion Inventory through Data Querying.pdfVIP

JOURNAL OF INFORMATION SYSTEMS Vol. 22, No. 1 Spring 2008 pp. 77–93 Due Diligence on Fast-Fashion Inventory through Data Querying A. Faye Borthick Georgia State University Mary B. Curtis University of North Texas ABSTRACT: In this simulation of a merger and acquisition due diligence engagement for a fast-fashion retailer’s inventory account, learners develop IT audit skills by (1) preparing a business process representation, (2) identifying audit objectives for testing management assertions about inventory, (3) designing audit procedures to implement audit objectives, (4) querying data files to execute audit procedures, and (5) commu- nicating results. The simulation develops skills for analyzing data to verify the internal consistency of accounting records and to detect conditions warranting further inves- tigation. The simulation, workable with a database query tool or audit software, is ap- propriate for students with querying proficiency and audit procedure design capability. The simulation helps bridge the understanding gap between IT auditors and general auditors by enabling novice auditors to experience an auditing situation in which they apply IT audit tools to verify internal consistency of data and detect unusual conditions in an audit of financial statement assertions. Keywords: audit program design; audit simulation; audit software; business process modeling; business process diagram; database querying; due diligence; fast fashion; integration of financial and IT auditing; query strategy; queries. I. LEARNING OBJECTIVES AND IMPLEMENTATION GUIDANCE Learning Objectives The learning objectiv