“Back to Basics”: Exercises to Teach Auditing Fundamentals

This learning strategy is a compilation of six “Back to Basics” exercises presented during the 2024 Excellence in Auditing Education Workshop. These exercises are resources that use analogies and experiential learning to teach basic audit concepts. The exercises cover the following: (1) explaining the demand for audits, (2) introducing the concept of materiality, (3) introducing the Committee of Sponsoring Organizations of the Treadway Commission framework for internal control over financial reporting, (4) explaining management assertions through an audit of petty cash, (5) performing sampling and an inventory count, and (6) explaining audit reports. These exercises can be used in either undergraduate or graduate audit courses, and are flexible to allow instructors to modify, adapt, and expand on them to fit their classroom environment. The Teaching Notes accompanying this learning strategy provide additional guidance on implementation and supplemental files for instructors and students.