Finding the Fraudster: A Problem-Based Learning Activity for the Auditing Classroom

Abstract

Problem-based learning activities prepare students for their future careers by requiring them to work together to solve a realistic problem using the knowledge and skills they have learned from a textbook.  These activities provide valuable experience applying information to a problem, instead of just memorizing an answer.  Created as a role-play situation, a type of problem-based learning, students playing the auditor interview students playing the client about their internal controls and the risk of fraud at the company.  Once the interview is complete, students work together to identify weaknesses and design improvements to internal controls, discuss fraud risk factors, and discuss limitations of traditional audit tests.  The activity has two major objectives: to provide students with a realistic setting for them to (1) assess internal controls and fraud risk and (2) improve their non-technical skills.  I find that the exercise improves students’ abilities in professional and accounting competencies.  Students overall enjoyed the experience and perceived the activity to be worthwhile, effective, and relevant.