Zapped by an Electrical Services Company? A Vendor Audit Case Study

ABSTRACT The case study provides students with hands-on experience performing and using data analytics as a risk assessment procedure. Students play the role of a newly hired accounting graduate who is presented with a large file of vendor invoice data and requested to use data analytics to assess the fraud risk associated with the vendor. This case study requires significant critical-thinking skills as students engage in a complex task involving ambiguity, and it simulates a real-world scenario in which students must determine which analyses are most helpful and can be performed based on the available data. The case learning objectives are (1) identify and recommend internal controls over the purchases and cash disbursement processes, (2) use data analysis software to identify anomalies in vendor data and transactions, and (3) demonstrate effective written communication skills.