Southern industries: A realistic simulation of substantive testing for accounts receivable

Academic Article


  • This case helps prepare students for internships and careers in the audit profession by providing them with a realistic simulation of year-end substantive testing of Accounts Receivable. Students are given an audit program for testing management’s assertions for the Accounts Receivable balance, and they are provided realistic supporting documentation with which to conduct their tests. Throughout the simulation, students will perform the following procedures: (1) identifying the correct supporting documents for each test and how to perform the required test work, (2) learning how to properly document their findings, (3) identifying any audit issues that arise during the performance of their test work, (4) rendering judgment for common issues that arise during the audit of the revenue cycle, (5) tying the supporting work papers to the trial balance and financial statements, and (6) understanding how an auditor can provide reasonable assurance about an account balance through substantive test work.
  • Authors

    Published In

    Digital Object Identifier (doi)

    Author List

  • Blix LH; Blix W; Edmonds M; Keenan ES
  • Start Page

  • 1
  • End Page

  • 13
  • Volume

  • 34
  • Issue

  • 4