AU-M case studies
AU-M · Put your knowledge to work in context.
AU-M is an internal audit certification-style exam built around eight practice domains: auditing fundamentals, planning and risk assessment, internal control and control testing, evidence and procedures, sampling and data analysis, reporting and communication, professional ethics and independence, and information technology in audit. The weighting is deliberate. The AU-M case studies are 5 cases and about 2,648 words.
1The Inventory Count Timing Conflict
You are the engagement manager for the audit of Kestrel Manufacturing, a private company with a 31 December year-end and a 48 million loan covenant requiring inventory turnover above 4.0. The client insists on counting inventory on 27 December because its warehouse staff take leave from 28 December.
597 words, about 3 min2The Revenue Analytics Anomaly
You are auditing Delta Digital, a software company with 62 million revenue. You run a data analytics test comparing monthly revenue by product line to the prior 24 months.
487 words, about 2 min3The IT Access Control Gap
You are auditing Northwind Retail, a listed company with a 30 June year-end. During IT general controls testing you find that 14 of 60 terminated employees still had active access to the general ledger system, some for up to seven months after termination.
512 words, about 3 min4The Independence Threat at the Audit Firm
You are a partner at a mid-tier firm. The audit client, Halcyon Logistics, has asked the firm to provide a valuation of its defined benefit pension obligation, which is material at 18 million against total assets of 210 million.
581 words, about 3 min5The Sampling Shortfall
You are testing the occurrence of 4,800 sales invoices for the year ended 31 March. You plan a statistical sample of 60 invoices using a 5% risk of over-reliance and a tolerable deviation rate of 5%, expecting zero deviations.
471 words, about 2 min