Part II: Take action and look to the future

You have been provided with one image of all of BAA’s sheep taken by a drone flown by a certified drone pilot (see the file Innovation_mindset_case_studies_Bryans_Amazing_Animals.jpg). Therefore, you do not need to learn how to fly a drone in order to complete this case. However, you do need to learn how to use automation software.

CountThings is an app that can be used on a computer or mobile device to automatically count “things” in photos using a variety of available templates. These things can range from houses to cars to wood to livestock and more. Templates are continuing to expand as more things are being counted and as the counting algorithms are being refined. This app also allows you to keep documentation of your counts based on photos as well.

Required

►    Click the image to watch a demonstration video about how to use CountThings. 

►    Download the CountThings app using the directions provided in the appendix to this case and information provided by your instructor.

►    Using CountThings:

–         Load the image provided into the CountThings app and save the file. 

–         Count the number of sheep in the image. Review the initial count produced by CountThings and adjust the tagging appropriately until you believe you have an accurate count.

►    Note that while CountThings is an effective tool, variation in the colors of sheep, sagebrush and other objects can often be flagged as sheep, or not flagged. You need to make sure you carefully review the entire image so your count is as accurate as possible. Carefully evaluate the picture looking for sheep that are different colors or tightly packed together. 

Based on your count, please answer the following questions. Submit a Word document to Canvas with your answers.

1.     How many sheep did you count using the drone image?

2. Would you require BAA to make an audit adjustment based on your count? Why or why not? 

3. How long did it take you to perform your count? Do not include the time it took to download and learn how to use the automated software. Only include the time it took you from the moment you opened the sheep file to the time you were comfortable with your final count.

 4. How would you compare the effectiveness and efficiency of the traditional method of counting the sheep to using drones and the automated counting software to perform the inventory count? Present a brief cost-benefit analysis of the manual sheep counting and technology-assisted sheep counting. 

5. How do you believe each of the following stakeholders would perceive the drone and software-assisted counting methodology relative to the traditional counting method?

a.     Audit firms

b.    Management of an audited firm (e.g., the ranching company)

c.     Audit standard setters

d.    A “reasonable” investor 

6. For which other types of inventory could auditors use drones or automated counting software to improve the effectiveness and efficiency of the audit? Briefly explain your answers.