In this two-part case, students are asked to assume the role of a consultant for Bryan’s Amazing Animals (BAA), a sheep farm that owns approximately 3,000 sheep. In completing this case, students will learn more about the inventory process in general. They will also learn how drones and automated counting software, emerging technologies with a variety of business uses, can be effectively used to make inventory counting and auditing more efficient and effective. Prior to completing the case, it is recommended that you discuss with students about the importance of an innovation mindset. Students should have also have an understanding of the inventory process. See the user guide for course applicability and other considerations.

• Part 1 provides students background about BAA and about the traditional inventory process. Students are asked to watch a few brief videos about BAA and how drones are being assessed for the digital audit work at EY. Students are also required to research traditional inventory procedures and auditing standards (e.g., AU Section 331 and AS 2510) and comment about their applicability in relation to new drone and automated counting software technology.
• Part 2 asks students to learn how to utilize CountThings software to perform inventory counts. This case will not require students to fly drones. The drone flight and image capture already have been completed for them. The students will receive one drone image taken above the sheep at BAA. Students will be required to upload the image to CountThings to perform the inventory count. Although the software automatically will tag the sheep, it is unlikely that the initial count will be completely accurate. Therefore, it is necessary for students to go through the image manually to verify the count and tag (or remove the tag from) any sheep that were missed (or incorrectly identified). Students will determine whether an audit adjustment is required based on their final count. Students then will write a memo of up to two pages that will require them to assess the effectiveness and efficiency of this process and then consider the implications that these new emerging technologies might have for the future of accounting and business inventory processes and stakeholders.

Suitable courses: AIS, Audit, Data Analytics

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