Controls, Payables, and Materiality: A Case of Unknown Collusion

In these teaching notes, we provide suggested solutions to our discussion questions that accompany all three parts of the case. Because of the open-ended nature of our questions, no precise correct answer may exist and the suggestions provided will not cover every potential correct response. We also include possible student responses and how to alter their line of thinking, as necessary. Lastly, we suggest particular frameworks to reference as part of the class dialog on these questions whether that be standard course material or existing regulations and guidelines for auditors. For ease of reading within these notes, each question taken directly from the case is shown in italics.