Client Acceptance

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C a s es inc lu de d in t his Se ction

1.1 Ocean Manufacturing, Inc.

The New Client Acceptance Decision

Instructor Resource Manual — Do Not Copy or Redistribute

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Instructor Resource Manual — Do Not Copy or Redistribute

Ocean Manufacturing, Inc.

C a s e

1.1

The New Client Acceptance Decision

Mark S. Beasley · Frank A. Buckless · Steven M. Glover · Douglas F. Prawitt
INS TRUCTIONAL O b je c t ive s
[1] To

help students understand the process of considering a new prospective audit client and the factors that auditors commonly consider in making the acceptance decision.
[2] To give students experience
If the case is to be used for an in-class discussion, we recommend having students read the case as an out-of-class reading assignment prior to the in-class discussion. A useful cooperative learning technique to use for the in-class discussion is “Roundtable.” The basic process for the
Roundtable activity is to have students meet in small groups to state aloud and write down on a single sheet of paper ideas for each question. Once all students have had an opportunity to state their ideas and arrive at a group consensus, the instructor can randomly call on individual students to share their group’s answers with the class. The class time allocated to the group discussion can be shortened by assigning groups responsibility for different case questions. Randomly calling on individual students to share their group’s answers with the class helps to ensure that all students take responsibility for learning the material.
If the case is going to be used as an out-of-class writing assignment, we recommend discussing the case requirements with the students prior to having them complete the assignment.
A useful cooperative learning technique to use for the out-of-class writing assignment is “peer editing.” With this approach students first meet in pairs to develop an