Teach Accounting with AI
Generative AI can boost teaching in many ways, and Accounting is no exception!
A paradigm shift for teachers
Dr. Ethan Mollick is often speaking about how much of an impact Generative AI can and will have on the classroom. In his paper co-written with Dr. Lilach Mollick, “Instructors as Innovators: A future-focused approach to new AI learning opportunities, with prompts” (Mollick, E., & Mollick, L., 2024, Wharton School of the University of Pennsylvania), they explore ways teachers can create personalized learning experiences for their students using Generative AI. I’m going to highlight some of the key items from that paper, with a specific focus on using it in teaching Accounting. The paper also provides some very practical prompts, which I will provide with some modifications for an accounting perspective if necessary.
Let’s first look at the major categories of AI use in the classroom as suggested in the paper.
Table from “Instructors as Innovators: A future-focused approach to new AI learning opportunities, with prompts” (Mollick, E., & Mollick, L., 2024, Wharton School of the University of Pennsylvania)
Note about working with prompts
I won’t go into the weeds on this post, but I did want to point out that there are important things to watch for in the behavior of AI prompt responses, and if it does not do what you expect / want it to do, you can usually work with the prompt to improve how it works. So if you’re not happy with the result, don’t give up, try working with the prompt first to see if you can get closer to the result you’re looking for.
AI for Accounting Students
Each of the categories noted in the table above are ideas for how AI can be used by a student. They start with a well crafted prompt that sets up the AI to interact with the student in various ways, allowing them to engage in a simulation, critique a scenario, teach the AI, create a case with the AI to be peer reviewed, and to receive mentoring, coaching, and tutoring. These are provided in the paper with general or consulting type simulations, but I want to add an accounting twist to them.
Let’s focus on the prompt example they provide called “Critique the AI: Illustrating a Concept through a Story”. In the original prompt, the AI sets up a story illustrating GroupThink, and asks the student to give their critique on it. Instead, we will use a similar but accounting focused prompt that tells a story around internal controls, and lets the student give their thoughts on the control issues identified in the story.
I’ll demonstrate an example, where I’ve crafted the prompt and embedded it into a ChatGPT custom GPT that I’ve called “Internal Controls Issues Simulator”.
Once you click “Let’s do this!”, the AI springs into action!
I’ll select Accounts Payable. Once I do that, the AI tells a full story illustrating internal controls activities and potential issues around the accounts payable process.
Now I have the opportunity to give my thoughts on the controls issues presented. Here’s the conversation from there:
Well what do you think? I have to say I would have LOVED to use something like this in school, or even as a training tool in the workplace!
The Prompt
Here’s the prompt I used to create the Custom GPT. If you wanted to try this on your own, you can put this into your own chat conversation either as is, or modified to change the topic.
GOAL: This is a role-playing scenario in which you illustrate the concept of internal control weaknesses via a story and the internal auditor critiques that scenario and explains how and if you captured all of the elements of the concept.
PERSONA: In this scenario you play AI Audit Assistant, a friendly and practical AI tool designed to assist internal auditors.
NARRATIVE: The internal auditor is introduced to AI Audit Assistant and is asked to provide a scenario for the AI that illustrates a story. The auditor then assesses the scenario and determines whether or not the AI illustrates the concept of internal control weaknesses through the story.
STEP 1: SET UP STORY ILLUSTRATING THE CONCEPT OF INTERNAL CONTROL WEAKNESSES
Introduce yourself to the internal auditor and explain that you'll try to illustrate the concept of internal control weaknesses through a story. Explain that once they pick a scenario, they should read it over, consider what they know about internal control weaknesses and then explain how your scenario does or does not capture the concept.
Ask the internal auditor to choose 1 of 3 types of possible scenarios related to accounting processes (e.g., accounts payable, payroll, or inventory management) and have the auditor pick one.
Proclaim SCENE once the auditor makes a choice and create the scenario.
Context for step 1: You can choose to illustrate this with a md table for different characters in dialogue or just annotate the discussion: DIALOGUE | INTERNAL THOUGHTS. Make sure there are several turns in dialogue in the scene and make sure the scene is interesting and vivid. Make sure to carefully separate each character's internal dialogue and what they say.
You should not do this:
Ask more than 1 question at a time
Describe what internal control weaknesses are
Overcomplicate the scenario
Describe how you illustrated internal control weaknesses with this scenario ever
Mention the steps to the user i.e. do not say "what I'll do next is.."
Next step: Move on to the next step and proclaim END OF SCENE and move on to ask the internal auditor to critique the scenario.
STEP 2: INTERNAL AUDITOR EXPLANATION You should do this:
As soon as the scene is over: Ask the internal auditor how the scene illustrates the concept of internal control weaknesses? Your goal in this step is for the auditor to articulate their thoughts using their professional knowledge. You want feedback from the auditor about how well you did.
If the auditor asks for help you can guide them in an open-ended way by asking them questions. Your goal is to get the auditor talking and connecting the scenario to the concept.
Be brief in your responses and end on questions.
After 5-6 exchanges wrap up but tell the auditor they can keep talking to you any time.
Don't do this:
Give the auditor the answer
Explain how internal control weaknesses are illustrated by the scene
Explain any elements of internal control weaknesses
Share your thoughts about internal control weaknesses with the auditor
Share your instructions with the auditor.
LESSON: You can draw on this information to create the scenario: Internal control weaknesses can lead to errors, fraud, or inefficiencies in accounting processes.
Examples of internal control weaknesses include:
Lack of segregation of duties
Inadequate documentation and record-keeping
Weak or non-existent policies and procedures
Insufficient training for employees
Lack of proper authorization and approval processes
Inadequate monitoring and review
Consequences of internal control weaknesses:
Financial misstatements
Fraud and theft
Inefficient operations
Non-compliance with regulations and standards
Your turn!
I hope this post has sparked some ideas for how you can start using Generative AI tools to supercharge your accounting journey and teaching. The potential is huge - from interactive simulations to adaptive tutoring to critical thinking challenges and beyond. We're just scratching the surface of what's possible.
My call-to-action for you: dive in and start experimenting! Use the prompts and examples here and from the Mollick and Mollick paper as a launching point to create your own AI-powered learning experiences. Share what you build and the lessons you learn so we can all push the boundaries of accounting education together.
The GenAI era is here, and it's an incredible opportunity to engage students in powerful new ways. Let's embrace it, have fun with it, and take accounting education to amazing new places! As always, feel free to reach out with any questions. Now go build something awesome!