Urgent Medical Device

Please read and analyze the case study (Urgent Medical Device, Inc.: A Teaching Case Designed to Integrate Data and Analytics inthe Financial Statement Auditing Classroom) and complete Question 1 and 3 below.


1) According to the professional auditing standards, an audit team should ordinarily presume
that revenue recognition is a fraud risk. Complete the following steps.
a. Based on your understanding of fraud risk assessment and the case information,
identify at least three specific fraud risk factors related to Urgent. Classify these
risks in terms of What Can Go Wrong (WCGW) with each of the significant
accounts and relevant assertions identified for Urgent’s revenue and accounts
receivable cycle.
b. What do you believe is the most significant risk related to the revenue account for
c. What special audit considerations would you propose in response to the significant
risk you identified above? In your response, consider how you would change your
approach to the nature, timing and extent of evidence in response to the identified

3) Data visualization tools such as Tableau can be used to help audit teams identify items or
specific areas of higher risk within an entire population. Your data and analytics center
has provided you with a set of Tableau visualizations to consider during your substantive
testing procedures:

i. 3-way match of SalesOrderID, InvoiceID, and ShipID based solely on
SalesOrders database
ii. Sales by territory
iii. Sales by distributor
iv. Sales by quarter
v. Sales by territory by quarter
vi. Product sales by Territory
vii. 4th Quarter Sales by Territory
viii. Sales vs. Sales Goals for 4th quarter by Territory
ix. Sales by quarter by Territory vs 4th Q Sales Goals

a. Using the data visualizations provided in Tableau, compose a memo to be included
in the audit documentation file that identifies any patterns in the data that you
believe may be indicative of specific audit risks. In your memo, be sure to link the
identified risks to the appropriate significant account and relevant assertions.

Learning Objectives of Case

To understand the fraud risks associated with revenue recognition and its impact
on the testing of the revenue and accounts receivable cycle (demonstrated when
students complete requirement 1 of the case).

To learn how to interpret commonly used data visualizations and reach audit
conclusions based on the issues, objectives and alternatives that surface given the
observed facts and circumstances (demonstrated when students complete
requirement 3 of the case).

To understand how to utilize commonly used data and analytics software tools (i.e.,
IDEA and Tableau) within a realistic audit context (demonstrated when students
complete requirements 3, 4 and 5 of the case).

To develop critical thinking skills around the identification of exceptions and risk
factors in client provided data (demonstrated when students complete
requirements 3, 4 and 5 of the case).