Students’ perceptions of the usefulness of an audit simulation Len Steenkamp

Background Objectives The simulation Constraints to the simulation Previous studies Toyrama results Conclusion

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

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?

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

Constraints to the simulation Simulated Time One element audited Information Systems

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

Findings from previous studies Valuable Better understanding Better performance “Hit the ground running” Criticism –Time

Results from Toyrama questionnaire

Respondent profile Response rate: 81.5%

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%

Potential benefits Number of students Percentage Auditing is made more practical % Enhances the practical implementation and use of Excel % Applying theory in practical scenario6720.9% Integrating different subjects5818.1% Learned about working papers4514.0% Manipulation of large volumes of data, especially in Excel % Problem solving skills4313.4% Prepares better for working environment257.8% Reduces the time spend studying for Auditing123.7% Other7322.7%

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

Constraints Number of students Percentage The simulation takes a large amount of time % Other (see next slide) % Unclear objective or insufficient background information % No set way of doing things, no memorandum provided or too little notes 206.2% Not realistic enough185.6% Working papers unknown to student175.3%

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

Conclusion Goals of simulation met Valuable teaching tool Benefit students

Questions?