Rosie’s East End Restaurant: An experiential introduction to auditing

This short interactive case introduces several auditing concepts in the context of a familiar activity: verifying the accuracy of a restaurant bill. You will work in student teams to first determine whether the bill is accurate, and then to decide whether you are willing to pay it. During the exercise, you will keep track of the various steps and procedures you used in making your decisions. After you complete the exercise, your instructor will relate the activity to various auditing topics in the auditing process such as audit evidence, internal control, materiality, professional responsibilities and the concept of “fairly stated.” Hundreds of students have completed this exercise and report that it has helped them grasp many essential features of the auditing process, while providing a useful frame of reference for more complex aspects of the audit process.

► The process of verifying a restaurant bill is used to demonstrate audit concepts.
► The case covers concepts of evidence, sampling, materiality, and internal control.
► The case introduces the important role of professionalism in the auditing process.
► The case serves as an experiential reference point throughout the course.