Bridging the Gap between Spreadsheet Use and Control: An Instructional Case

End user applications (such as spreadsheets) have been cited as a previously ignored yet potentially significant risk to financial reporting in the wake of The Sarbanes‐Oxley Act (PricewaterhouseCoopers [PwC] 2004; Ernst&Young [E&Y] 2004). We developed a realistic spreadsheet model in order to expose students to internal control issues inherent in a spreadsheet environment. By completing the case, students develop skills relating to auditing information systems and evaluating spreadsheet controls, functions, and formulas. Students also have an opportunity to improve written communication skills by conveying their findings to others in a memorandum.