We develop a case study on compliance auditing for use in undergraduate or graduate accounting courses, particularly external or internal auditing. Compliance testing is an integral component of the work performed in the evaluation of internal controls, as well as in the tests of federal and state grant programs, yet the topic of compliance auditing is often underrepresented in most accounting curricula. This case, which involves a hypothetical university's adherence to NCAA rules and regulations, is comprised of two sections that can be used jointly or independently: (1) learning about various resources to develop an understanding of an entity and the environment in which it operates, and (2) interpreting different scenarios that may or may not indicate compliance violations. Adherence to NCAA rules and regulations is of interest to many students, and the case provides students with an opportunity to see the importance of compliance auditing and the need for auditors to exercise professional judgment when situations are imprecise.
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