Auditing Lovitts

Auditing Lovitts is a case study that focuses on audit judgements, rather then the mechanics, of auditing. It does this by providing simulations of the main judgement stages in audits, using two separate years in the life of a company - when it is a small family business with few employees, and when it is a large national listed company with a management hierarchy and sufficient staff to allow optimal segregation of functions, except perhaps in the computer department. It includes the auditing of the company?s computerised information systems (CIS), but in such a way as to recognise that accounting students are not likely previously to have taken more than one unit introducing information systems and one covering accounting information systems. It is limited to financial report auditing ? that is, it does not go into other assurance services other than to show where there is scope for them.