dr. m. david merrill’s 5 star instructional design model … a g e | 3 analysis introduction this...

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Dr. M. David Merrill’s 5 Star Instructional Design Model Workshop

Aaron J. Appleby, Catherine T. Jarmon, Vanessa U. Kubota, & Andria J. Wiseman

Purdue University

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Table of Contents

Analysis 3

Introduction 3

Front-End Analysis and

Instructional Goal #

Goal/Task Analysis #

Subordinate and Entry Skills #

Learner and Context Analyses #

Design #

Performance Objectives #

Assessment Instruments #

Design Evaluation Chart #

Instructional Strategy Plan #

Development #

Workshop Agenda #

Workshop Materials #

Implementation,

Evaluation, and Revision #

Implementation Report #

Assessment Report: Learner

Performance #

Formative Evaluation and Revision

Report: Instruction/Workshop

Components #

References #

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Analysis

Introduction

This workshop will explore Merrill’s 5-Star Model as a way of evaluating instructional design. This is a

simple 5 star rating system that can be used to rate instruction, instructional materials, mediums, and lesson.

This model consists of 5 stars one for each of the following topics problem, activation, demonstration,

application, and integration. The rating is based on the answer to three sub-questions in each section; the

answers to which will result in either a bronze, silver, or gold star awarded for each of the five stars.

Merrill’s five stars are identified as follows:

Learners are engaged in solving real-world problems.

Existing knowledge is activated as a foundation for new knowledge.

New knowledge is demonstrated to the learner.

New knowledge is applied by the learner.

New knowledge is integrated in the learner’s world. (Merrill, 2002, pp. 44-45)

This workshop is designed for the novice instructional designer. This will introduce them to this model as

well as provide instruction on how to implement and use the model for evaluative purposes. A one-hour

workshop should provide the adequate amount of time top present this model and allow the participants to apply

the principles through practical experience.

Front End Analysis and Instructional Goal

In response to dwindling enrollment, the leaders at Hilltop Academy began a performance analysis to

explore what was lacking. It was determined that the school was lacking something to set them apart from the

other area schools. This school is located in the center of the city which makes it landlocked so expansion and

improvement of its older and aesthetically unappealing facilities in very difficult and not cost effective at this

point. The school needs to set itself apart while utilizing resources that it already has. Through the use of parent

meetings and surveys it became apparent that the parents love the teachers and want more technology integrated

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into their child’s school day. It was determined that with minimal upgrades, the school’s technology

department could be used as a means of attracting potential students. After an evaluation of what was offered

at the other area schools, it was discovered that blended learning was an underutilized model in the area.

Therefore, it was decided that a blended learning model would be introduced for the 2013-2014 school year.

This model would combine face to face instruction with online self-paced instruction. A committee of teachers

and administrators were assembled as a taskforce to implement this program. As many of these individuals are

novices in the field of instructional design, the need for guidance on how to evaluate the blended lessons for

effectiveness became apparent. Merrill’s 5-Star model was chosen as the topic for a one-hour workshop due to

its simplicity and ease of use. The use of a face to face workshop is most appropriate in this situation as it will

allow for hands on guided learning.

The skills developed through this workshop will be used by the participants as a means of evaluating

blended learning lessons. These lessons will combine the use of technology and face to face instruction The 5

stars will serve as goals that should be met by any lesson that is used.

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Goal/Task Analysis

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Subordinate and Entry Skills

Subordinate skills have been highlighted in green and entry skills have been highlighted in purple in the

above Goal/Task Analysis mapping.

Learner and Context Analyses

This workshop is designed for the blended learning task force of Hilltop Academy. This task force

consists of both teachers and administrators with limited instructional design experience who will be

responsible for evaluating and assessing how to best implement a blended learning model while maintaining the

effectiveness of instruction. The participants are all novice instructional designers and all have a bachelor’s

degree or higher. There are 6 participants 2 are between the ages of 50-65 and 4 are between the ages of 30-45.

All work with technology on a daily basis however, most are new to blended learning and online instructional

materials. The goal of this workshop is to provide them with an easy to learn method for evaluating lesson plans

and instructional materials. Merrill’s 5-Star Model has been chosen due to its simple nature and general ease of

use.

The ease of use of this model and concise nature makes it possible to both explain and apply it within a

one-hour workshop. Utilizing a face to face workshop will allow for greater clarity among the learners. This

model will serve the immediate need of this group by giving them a tool for evaluating and comparing possible

lesson options. This workshop will take place a Hilltop Academy in their computer lab. The lab is adequately

equipped with necessary technology. Conducting the workshop at the school will provide a relaxed and

comfortable environment for the participants due to the familiar surroundings.

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Design

Performance Objectives

Main Instructional Goal Terminal Objective

Upon completion of this workshop, novice

instructional designers will be able to implement

Merrill’s 5 Star ID Model as a way of evaluating

instructional lesson.

Given a sample online lesson package participants

will be able to evaluate and rate said lesson

utilizing Merrill’s 5-Star Model.

Main Step in Instructional Goal Performance Objective

1. Explore Lesson Given a sample lesson package participants

should look through the lesson and become

familiar with its main components.


2. Ask each of the 3 questions of the lesson for

each section.

Given a rubric that uses the 5-star model

participants should ask each question of the lesson

and answer either “yes” or “no” for that question.

Subordinate Skills Subordinate Objectives

2.1 Describe the meaning of “problem”

through explanation of each of the 3 questions

that comprise its section.

Given the 3 questions of this section the

participants should be able to explain the meaning

of each question. Explanations should include

how problems are presented to learners, learner

engagement, and progression of content.

2.2 Describe the meaning of “activation”






how learning is activated in learners.

2.3 Describe the meaning of “demonstration”






references to demonstrations, guidance, and media

within the lesson.

2.4 Describe the meaning of “application”






practice and testing, activities, and access to help

within the lesson.

2.5 Describe the meaning of “integration”






how the lesson is integrated into the lives of the

students.

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3. Award one point for each affirmative answer. When utilizing the provided rubric participants

should give one point to each section when the

answer is yes for that lesson.


4. Rate each section as bronze, silver, or gold

based on receiving 1, 2, or 3 points respectively.

Given the answers to each question and the points

awarded, participants will rate each section.


5. Determine the overall rating Given the rating of each section, participants will

average the stars to determine an overall star

rating.

Assessment Instruments

Assessment Plan

Entry Skills Assessment

As this is a workshop designed for novice instructional designers the only entry skill necessary is

the ability to use a personal computer. All of the individuals on this task-force have these skills

as they are required in their day to day job duties. Due to the nature of the work of these

individuals, an entry skills assessment is not necessary.

Practice Tests

Participants will be asked to describe the meaning of each of the 5 sections of Merrill’s Model.

They will then be given a sample online lesson to explore and rate based on the answer to each

of the questions within the 5-star model. They will be given a rubric to use for evaluative

purposes.

Post-Tests

The post-test will require participants to describe and define the meaning of each of the questions

within the 5-Star Model. This test will include small examples to be evaluated and rated for

specific sections. This will demonstrate an understanding and ability to apply the model.

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Design Evaluation Chart

Main Instructional Goal Terminal Objective Test Item

Upon completion of this

workshop, novice instructional

designers will be able to

implement Merrill’s 5-Star ID

Model as a way of evaluating

instructional lesson.

Given a sample online lesson

package participants will be

able to evaluate and rate said

lesson utilizing Merrill’s 5-Star

Model.

Explore the following

lesson, and using a

provided rubric evaluate

the lesson for

effectiveness according to

Merrill’s 5- Star Model.

Rate the model as bronze,

silver, or gold.

Main Step in Instructional

Goal

Performance Objective Test Item

1. Explore Lesson Given a sample lesson package

participants should look

through the lesson and become

familiar with its main

components.

Name the main

components of the

following lesson.


Goal


2. For the lesson, ask the 3

questions of Merrill’s Model for

each of the 5 sections.

Given a rubric that uses the 5-

star model participants should

ask each question of the lesson

and answer either “yes” or “no”

for that question.

Describe the meaning of

each of the 5 sections in

Merrill’s model.

Subordinate Skills Subordinate Objectives Test Item

2.1 Describe the meaning of

“problem” through

explanation of each of the 3

questions that comprise its

section.

Given the 3 questions of this

section the participants should

be able to explain the meaning

of each question. Explanations

should include how problems

are presented to learners,

learner engagement, and

progression of content.

After looking at the lesson

above decide whether it

meets the criteria of each

question in the “problem”

section.


“activation” through



section.





should include how learning is

activated in learners.




question in the

“activation” section.

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“demonstration” through



section.





should include references to

demonstrations, guidance, and

media within the lesson.




question in the

“demonstration” section.


“application” through



section.





should include practice and

testing, activities, and access to

help within the lesson.




question in the

“application” section.


“integration” through



section.





should include how the lesson

is integrated into the lives of

the students.




question in the

“integration” section.


Goal


3. Award one point for each

affirmative answer.

For the lesson, utilizing the

provided rubric, participants

should give one point to each

section when the answer to a

question is “yes.”

Taking each of the above

questions award the

appropriate number of

points for each of the 5

sections.


Goal


4. Rate each section as bronze,

silver, or gold based on

receiving 1, 2, or 3 points

respectively.

Given the answers to each

question and the points

awarded, participants will rate

each section.

Taking the tally from the

previous question rate

each section according to

the total number of points.


Goal


5. Determine the overall rating Given the rating of each

section, participants will

average the stars to determine

an overall star rating.

Taking the rating of each

section, what is the overall

rating of this lesson?

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Instructional Strategy Plan

Objective Sequence and Clusters

Content Presentation and Learner Participation

Cluster 1

Objectives:

2. Given a rubric that uses Merrill’s 5-star model, participants should ask each question of the

lesson and answer either “yes” or “no” for that question.

2.1 Given the 3 questions of this section the participants should be able to explain the meaning of

each question. Explanations should include how problems are presented to learners, learner

engagement, and progression of content.


each question. Explanations should include how learning is activated in learners.


each question. Explanations should include references to demonstrations, guidance, and media

within the lesson.


each question. Explanations should include practice and testing, activities, and access to help

within the lesson.


each question. Explanations should include how the lesson is integrated into the lives of the

students.

Content Presentation

Content: Each of the 5 sections will be presented and broken down into their 3 questions. The meaning

of each will be discussed.

Examples: Examples of lesson components or instructional materials that answer “yes” to the questions

will be shown via projector.

Student Grouping and Media Selection: Students will be in a whole group setting during the

presentation.

1 2

2 1

2.1 3

2.3 4

2.4 5

2.5

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Student Participation

Practice Items and Activities: In pairs, participants will come up with examples and definitions, in their

own words, for each of the sections.

Feedback: Discuss definitions and examples as a whole group and settle on simple definitions for each

of the sections.

Student Grouping and Media Selection: Students will work in pairs.

Cluster 2

Objectives:

1. Given a sample lesson package participants will look through the lesson and become familiar

with its main components.

3. When utilizing the provided rubric participants will give one point to each section when the

answer is “yes” for that lesson.

4. Given the answer to each question and points awarded, participants will rate each section.

5. Given the rating of each section, participants will average the stars to determine an overall star

rating.

Content Presentation

Content: Introduce the sample lesson and go over key aspects to explore within the material. Rubrics

will be distributed and participants will begin the lesson evaluation process.

Examples: We will provide a sheet of example components that would fit the model for each section.

Student Grouping and Media Selection: For the presentation students will be in a whole group.

Student Participation

Practice Items and Activities: Participants will now work individually to examine sample lesson online.

They will answer the questions on a provided rubric as “yes” or “no.” Once finished, they will rejoin

their groups and discuss their findings. They will be required to justify their responses to their group

members.

Feedback: The groups will subsequently come up with a final evaluation. As a whole group, we will go

over the group evaluations and how to award points and rate each section. We will ultimately award an

overall rating to the lesson as a group.

Student Grouping and Media Selection: This part will start out individually but, will transition to small

groups and eventually a whole group setting.

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Development

Workshop Agenda

1:00- 1:15 Introduction to Merrill’s Model

Describe each of the five stars

In pairs students will write their own definitions for each star

1:15-1:30 Discuss the rating system

Show/discuss examples of gold stars

Distribute/explain rubrics

Distribute sample lesson plan

1:30- 1:50 Learners evaluate/rate lesson plans using rubric individually

Learners will discuss their ratings with their partner and reevaluate

1:50-2:00 Whole group will discuss findings

Workshop Materials

The following documents are attached to this report. To maintain the blended idea of the new model that

will be used all materials will be distributed to the participants during the workshop electronically.

PowerPoint Slideshow

The Slideshow will be shown on the screen during the introduction to the model and explanation of the stars

and rating system.

Sample Lesson Plan

The lesson plan will be distributed during the training and used as a way for the participants to apply the

rating system. The lesson plan will be distributed electronically.

5-Star Rating Rubric

The rubric will be used to as a tool for the participants to rate the sample lesson plan. The rubric will be

distributed electronically.

Post-Test

The post-test will be distributed immediately following the workshop. This will be taken electronically in

the computer lab.

Post- Test Key

The post-test will be graded immediately. The data will be used to evaluate and revise the workshop.

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Implementation, Evaluation, and Revision

Implementation Report

After many considerations, compromises, and revisions, it was decided that a test workshop would be

held with a group of 6 people within our focus group. One group member was chosen to hold the workshop.

The age range and qualifications of the learners were within the range of the focus group previously discussed. The

5 Star Workshop was held in Austin, Texas. Statistical information for the learners is broken down in the chart

below.

Position Age Years’ in

Education

Pre-k 25 2

Pre-k 41 18

7th

grade 63 10

Physical Education 34 3

Principal 51 15

3rd

Grade 60 35

This workshop took place in the computer lab of the school. The workshop began about 30 minutes past

the time that was scheduled, due to technical difficulties. Once the workshop started and everyone was settled

we were able to begin. We utilized PowerPoint for presentation purposes. Based on feedback during and after

the workshop, the PowerPoint was useful and presented the information in a clear and concise way that the

learners were able to follow. After going through the PowerPoint and answering questions we were running

about 5 minutes behind schedule. It was initially planned that the documents for the workshop would be

distributed electronically. However, due to the technical difficulties previously mentioned hard copies of all

documents had to be distributed. Learners found the rubric to be very easy to follow and that portion of the

workshop actually took less time than anticipated which helped make up for the time that was lost during the

PowerPoint portion of the workshop. Once we came together to discuss the findings there was some need for

further clarification however, most learners came up with the same findings.

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Assessment Report

Learners came into this workshop with no knowledge of this model. After completing the workshop we saw

that the learners were able to implement the model along with the help of the rubric easily. They did not have

many questions during this portion and they were successfully able to rate the lesson plan with little assistance

on intervention.

The Learners took the post-test immediately following the workshop and turned them in. Upon review of the

post-, one issue became obvious; the post test was very long. While they were easily able to articulate the answers

to the first 5 questions and describe the meaning of each of the stars, they struggled with completing the rubric.

After discussing the amount of time that it took for them to complete the post-test they cited the length of the

sample lesson given as the reason they were unable to complete the test quickly. Although it took them quite a

bit of time, they did complete the rubric and all were able to score the lesson accurately. This particular model

does leave some room for interpretation as it is in some ways opinion based so there was a bit of wiggle room

with the ratings but the ratings were reasonably consistent with our answer key expectations.

Formative Evaluation and Revision Report

It seems that the biggest areas in need of improvement for this workshop lie in adjusting the schedule to

accommodate more time for the presentation. While we did have enough time to complete the whole workshop in

the hour, extending the workshop would provide for a more relaxed environment and time for further practical

application of the model. The technical difficulties, while unavoidable, did effect our planned implementation.

However, the overall effect was minimal. In the future we would still recommend that we distribute the documents

electronically as it is in staying true to the blended learning direction. The post- test should be revised to include a

shorter sample lesson for evaluation as the learners found the sample lesson to be overwhelmingly long. The most

successful aspect of this workshop was the rubric. It made it very easy for the learners to grasp the concepts and

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apply them. It will be very exciting to apply this workshop on a larger scale and have larger groups analyzing

lesson plans for effectiveness. Since this model does provide some room for debate we think we could see some

great debates about the different aspects of the model once the full workshop is implemented. Thank you so much

for this opportunity and we cannot wait to fully implement this amazing workshop!

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References

Merrill, D (2001, April 7). 5 Star Instructional Design Rating. http://id2.usu.edu/5Star/FiveStarRating.PDF

Merrill, D. (2002). First principles of instruction. Educational Technology, Research and Development, 50(3),

43-59.

Merrill, D., Barclay, M., & Schaak, A. (2008). Prescriptive Principles for Instructional Design. In AECT

Handbook (pp. 173-184).

http://id2.usu.edu/5Star/FiveStarRating.PDF

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Appendix

POWERPOINT

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SAMPLE LESSON PLAN

Title: The Cell Cycle!

Objectives

To have students successfully work in groups to

complete a presentation on the cell cycle and

mitosis.

To have students effectively make their

presentation and appropriately respond to all

questions from other students.

To have students successfully prepared to

succeed on their home quiz following the in

class presentations.

Big Understandings

Students identify the different stages

of the cell cycle

Students know the characteristics of

the different stages of the cell cycle

Students know the order of the stages

of the cell cycle

Students can visually identify the

different stages of the cell cycle

Students know what part(s) of the cell

cycle occur during mitosis

Opening Hook

Question: Ever wonder how we can grow from 1 cell into trillions? How do you think it

happens?

Answer: Cells must divide and multiply in number in order to create all of our tissues, organs,

organ systems, etc. From the time an egg is fertilized (i.e. one cell), it must create billions of

cells which create the final working organism. There are many different processes occurring

during this development but the most important one is cell division, as it allows one cell to

become many cells!

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Instructional Strategies/Student Activities

DAY 1

1. Discuss questions from “opening hook” with students and determine their initial

understanding

2. Students will be provided with a photocopied version of slides to accompany

a powerpoint presentation focusing on: the cell cycle, parts of the cycle leading to

mitosis, and mitosis itself.

3. Students will be presented with a set of visual aids which depict the various stages of

mitosis (these will include pictures and set up microscope stations). Students will,

working in groups, have the option to create a video, generated movie in Flash, or

wikipage. Students will work in their groups to determine/assign roles and then work in

preparation for presenting their projects the next day.

4. Students will access and go through an online ‘tutorial’ for their group’s chosen project

medium which will be accessed via the class website.

5. Students will be able to access various pictures and videos of the cell cycle process

taking place for use in their projects, via the class website.

6. Students will work on and complete their group projects, with group communication

available through the virtual classroom on the class website.

DAY 2

7. Groups will show their presentations to the rest of the class and explain how they were

able to enhance their presentation by utilizing the available technology.

8. Students will ask questions of the other group’s presentations, with each student being

required to ask 2 questions and each group member being required to answer 1

question.

9. Students will be required to a complete a home quiz that evening, accessible via the

classroom website.

Materials

Computer connected to overhead projector for powerpoint presentation and student

presentations

Photocopied worksheet of powerpoint slides for student’s notes

Mitosis pictures

Microscope stations with slides

Grouping Patterns

Students will be in groups of 3-4 students

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Assessment Evidence

Students will be assessed by the quality of their presentation, as well as through an interactive

home quiz the evening following the presentations. This home quiz will be taken through the

class website and will consist of identifying which stage of mitosis is occurring in various

video clips presented.

5-STAR RATING RUBRIC

Merrill’s 5-Star model consists of 5 sections (stars). The five sections (stars) are problem,

activation, demonstration, application, and integration. Each section (star) is rated as bronze,

silver, and gold based on receiving 1, 2, or 3 points respectively. One point is awarded in each

section (star) for each affirmative answer to the questions included in that section.

Section (Star) Yes No

Task (Problem)

Is the lesson plan presented in the context of real world problems?

Does the lesson plan show learners the task they will be able to do or the

problem they will be able to solve as a result of completing a module or course?

Are students engaged at the problem or task level not just the operation or

action levels?

Does the lesson plan involve a progression of problems rather than a single

problem?

Activation

Does the lesson plan attempt to activate relevant prior knowledge or

experience?

Does the lesson plan direct learners to recall, relate, describe, or apply

knowledge from relevant past experience that can be used as a foundation for

new knowledge?

Does the lesson plan provide relevant experience that can be used as a

foundation for the new knowledge?

If learners already know some of the content are they given an opportunity to

demonstrate their previously acquired knowledge or skill?

Demonstration

Does the lesson plan demonstrate (show examples) of what is to be learned

rather than merely tell information about what is to be learned?

Are the demonstrations (examples) consistent with the content being taught?

Examples and non-examples for concepts?

Demonstrations for procedures?

Visualizations for processes?

Modeling for behavior?

Are at least some of the following learner guidance techniques employed?

Learners are directed to relevant information?

Multiple representations are used for the demonstrations?

Multiple demonstrations are explicitly compared?

Is media relevant to the content and used to enhance learning?

Section (Star) Yes No

Application

Do learners have an opportunity to practice and apply their newly

acquired knowledge or skill?

Are the application (practice) and the posttest consistent with the stated or

implied objectives?

Information about practice requires learners to recall or recognize

information.

Parts of practice requires the learners to locate, name, and/or describe

each part.

Kinds of practice requires learners to identify new examples of each

kind.

How to practice requires learners to do the procedure.

What happens practice requires learners to predict a consequence of a

process given conditions, or to find faulted conditions given an

unexpected consequence?

Does the lesson plan require learners to use new knowledge or skill to solve a

varied sequence of problems and do learners receive corrective feedback on

their performance?

In most applications or practice activities, are learners able to access context

sensitive help or guidance when having difficulty with the instructional

materials? Is this coaching gradually diminished as the instruction progresses?

Integration

Does the lesson plan provide techniques that encourage learners to

integrate (transfer) the new knowledge or skill into their everyday life?

Does the lesson plan provide an opportunity for learners to publicly

demonstrate their new knowledge or skill?

Does the lesson plan provide an opportunity for learners to reflect on, discuss,

and defend their new knowledge or skill?

Does the lesson plan provide an opportunity for learners to create, invent, or

explore new and personal ways to use their new knowledge or skill?

POST-TEST

Answer each question.

1. Describe, in your own words, the meaning of “problem” by explaining the 3 questions

that comprise the section.

2. Describe, in your own words, the meaning of “activation” by explaining the 3 questions


3. Describe, in your own words, the meaning of “demonstration” by explaining the 3

questions that comprise the section.

4. Describe, in your own words, the meaning of “application” by explaining the 3 questions


5. Describe, in your own words, the meaning of “integration” by explaining the 3 questions


6. Review the provided lesson plan and rate the instruction utilizing Merrill’s 5-Star model.

A copy of the rubric is provided.

Conceptual Overview, or, Why Do We Audit?

Section 1 Design a Company

90 minutes

Note: This lesson plan includes 4 sections. Each section has different objectives.

Objective Learners will identify the typical flow of money through

an average business: transition, journal entry, sub-ledger,

general ledger, trial balance, and financial statements.

Big Understandings

In this section, learners will create a hypothetical

company. Creating their own company rather than

analyzing a canned example achieves a few important

objectives:

Creates a sense of ownership among learners

Engages learners’ creative sides, raising the

energy level

Requires learners to actively engage their

prior knowledge, which lead to greater

learning of new material

The company created should realistically portray the

basic business process flow: business transaction,

journal entry, sub-ledger, general ledger, trial balance,

and financial statements.

Opening Hook

Some learners may feel that they have already covered this information in their college auditing courses.

Point out that a liability of many auditors, especially ones that are relatively new, is that they don’t understand or

think about the underlying concepts behind what they are doing. They follow procedures but don’t stop to think

about what they are trying to accomplish.

The first part of this course is designed to help learners consider these core concepts when they follow audit

procedures. If they can continually think about these core concepts, they will become much better auditors much

faster.

Instructional Strategies/Student Activities Model what you want learners to complete in activity 2.1.1 by creating a hypothetical company that only includes

one of the steps of the basic business process flow.

Describe how you recently sold some items on eBay.

On the flip chart, draw the business process flow through your mini-business, similar to the flow shown

below.

o Be sure to label the transactions in your flow diagram.

vintage camera

equipment in

old box in

garage

me

collector

eBay

cameras

$$$

$

service

transaction

transaction

Point out that this example is very simple. Obviously, most businesses are much more complex in terms

of business process flow.

Have learners turn to activity 2.1.1 (see below for the activity) in their participant guides and follow the

instructions in their small groups.

As learners complete the activity, walk around the room to ensure each group includes all the business

processes. You can hint to each group what is missing or ask probing questions to make them think about

what is missing.

o For example, how is your company financed (lenders or owners)?

o Do you have any employees (human resource process)?

o How are all the transactions entering into the accounting system (financial reporting process)?

Activity 2.1.1 - Business Process Flow

In your group, appoint one person to be the scribe. Then follow these steps:

1. Brainstorm a type of business (e.g. high end fashion retailer, manufacturer of novelty gag gifts,

restaurant). Choose a name for the new business.

2. On flip chart paper, draw a flowchart that shows the basic business process flow or transaction cycles of

your business. In other words, show how a transaction is originated to its ultimate place in accounting

journals, ledger, and financial statements.

Hint: The five basic business processes are 1) the revenue process, 2) the purchasing process, 3) the human

resource process, 4) the inventory management process, if applicable, and 5) the financial reporting process.

Also consider operating, financing, and investing activities.

Have each group share their process flow with the class.

Ask the groups to provide feedback on the process flows. Prompting questions include:

What’s common to all the process flows?

What are some differences?

Who are the parties involved in the process?

Debrief by drawing the abstract basic business process flow for the class (see diagram below).

Provide examples of who the readers/users of the financial statements might be. Explain the importance of

knowing the user of the financial statements.

Examples of readers/users

o Lenders

o Management and owners

o Investors, including potential investors

Understanding the users of the financial statements is vital to all audits. Auditors need to understand who

the users are to determine what might be material in the financial statements to them when making

financial decisions (to invest in the company, agree to loan money, agree to finance, etc.).

Basic Business Process Flow:

customers

suppliers

journal entry

$ A/P

$ A/R

sub-ledger

general

ledger

trial balance

financial

statement

readers

goods/

services

goods/

services

lenders

owners

debt paymnts

interest paymntsfinancing

debtcapital

contributions

return on

capital

human

resources

services

compensation

Materials

1. Computer connected to overhead projector for PowerPoint presentation.

2. Flip chart paper

3. Participant guide which includes activities, print out of PowerPoint slides, and notes to supplement the

presentation.

Grouping Patterns Learners will be in groups of 4 – 5 (table groups).

Assessment Evidence

Learners will be assessed by the quality of the completion of the activity and their presentation of their company.

A “check your understanding” activity (Activity 2.4) will be provided later in the course to assess whether learners

can identify how the basic business process flow impacts an audit.

P a g e | 30


Section 2 Spotting Errors

45 minutes


Objective

Learners will be able to describe likely sources

of errors within a typical business process flow.

Given a possible error within a typical business

process flow, learners will be able to describe

sources of evidence that would reveal the

presence of that error.

Big Understandings

In this section, learners will:

Identify errors in a typical business process

flow

Identify the sources of evidence that reveal

the presence of an error

Determine how those errors identified can

lead to a misstatement in the financial

statements.

Opening Hook

An auditor is responsible for identifying material misstatements in a set of financial statements whether the

misstatement is caused by error or fraud. To be able to identify potential misstatements, an auditor needs to

understand how the misstatement can occur and what sources of evidence can reveal the misstatement. This

section will focus on misstatements caused by errors. The next section will focus on misstatements caused by

fraud.

Instructional Strategies/Student Activities Model how to identify potential errors in a hypothetical company.

Point out a possible source of error in the eBay example from the previous section.

o For example, eBay could charge you the wrong amount for fees.

You could step through a potential error in one of the flows presented by a group.

o For example, (HR process) an employee could be paid the wrong pay rate due to a glitch in the

payroll system.

o Another example, (Purchasing process) a vendor charged the company for 100 widgets when the

company received only 50 widgets.

Invite learners to suggest other possible errors.

Refer learners to activity 2.2.1. Have learners brainstorm possible sources of errors in their process flows that

could impact the financial statements.

Activity 2.2.1

In your group, brainstorm as many errors as you can that could impact the financial statements of your

hypothetical company.

Have learners also complete activity 2.2.2, where they identify evidence that would indicate the presence of each

error identified.

Activity 2.2.2

Next to each error identified in activity 2.2.1, write down at least one piece of evidence that would indicate the

presence of the error.

To debrief the activities, ask groups to share potential errors with the whole group. Keep a running list on the flip

chart.

For each suggested error, highlight how that error can impact the financial statements.

o Ask: “How would that error impact the financial statements?” or “How would that error lead to a

misstatement in the financial statements?”

Once the class has a reasonably comprehensive list, start at the top of the list and have the class describe

how someone could find evidence of that error.

o Examples of evidence for the HR and purchasing processes utilized previously include:

HR process: Compare the employees approved pay rate to the pay rate in the payroll

system.

Purchasing process: Compare the receiving report that shows the number of widgets

received to the invoice before paying the invoice.

P a g e | 31

Materials


2. Flip chart paper


presentation.


Assessment Evidence

Learners will be assessed by the quality of the class discussions. A “check your understanding” activity (Activity

2.4) will be provided later in the course to assess whether learners can identify errors in the business process flow

and sources of evidence of those errors.

P a g e | 32


Section 3 Spotting Fraud

45 minutes


Objective

Learners will be able to describe likely sources

of individuals defrauding the company or its

investors within a typical business process flow.

Given a scenario where an individual is

suspected of defrauding a company or its

investors, participants will be able to describe

sources of evidence that would reveal the

presence of fraud.

Big Understandings

In this section, learners will:

Identify fraud in a typical business process

flow.

Identify the sources of evidence that reveal

the presence of fraud.

Determine how the fraud identified can lead

to a misstatement in the financial statements.

Opening Hook

An auditor is responsible for identifying material misstatements in a set of financial statements whether the

misstatement is caused by error or fraud. To be able to identify potential misstatements, an auditor needs to

understand how the misstatement can occur and what sources of evidence can reveal the misstatement. This

section will focus on misstatements caused by fraud.

Instructional Strategies/Student Activities Refer learners to activity 2.3.1 in their participant guide.

Activity 2.3.1: Sources of Fraud

Within your group, brainstorm as many examples as you can for fraud that might impact your company.

If you feel it is necessary, before you have participants complete the activity, you can provide an example.

If the class wants an example, you can adapt the running eBay scenario. You need to add an employee

otherwise you are defrauding yourself. Your employee decides that you don’t pay him enough. He

decides to pocket some of your cash by diverting funds in your Pay Pal account to his own.

Or, if you want to give a fraudulent financial statement example: Let’s say you made out so well on

selling the camera equipment that you wanted to sell on eBay full time. In order to do that, you’d need

some equipment: a good digital camera and some software, for example, for more attractive listings. You

might ask a relative to provide some capital in exchange for a cut of your future profits. Your uncle is

willing, but first he wants to know that you will make enough money to make it worth his time. He wants

to know how much profit you made on your first sale.

In order to convince your uncle to invest in your eBay business, you may want to overstate profits to

make the investment look promising. You decide to inform him of the income received from your first

sale but you purposely do not inform him of the fees eBay charged. If you only told him about the income

but not the fees, that would be fraud. You’d be misleading a (potential, in this case) investor.

Or, you could wait to defraud him until you received his initial investment. You could do this in two ways:

by understating income or by overstating expenses. Either would result in a decrease in profits to share

with your uncle.

To debrief the activity, record group responses on a flip chart.

As before, ask groups to identify sources of evidence that would reveal each type of fraud on the flip chart.

eBay fraud example (employee pockets some of your cash by diverting funds into his Pay Pal account)

o Verification of your eBay fraud example might be comparing total sales to increases in the

company’s Pay Pal account. The increase would be less than sales because it was diverted to the

other Pay Pal accounts.

Explain that there are two types of fraud: misappropriation of assets and fraudulent financial reporting.

Provide an example of each type of fraud.

Refer participants to activity 2.3.3.

Activity 2.3.3: Types of Fraud

There are two types of fraud: misappropriation of assets and fraudulent financial reporting. Classify your

examples of fraud for your company (the list you came up with in Activity 2.3.1) into these two groups.

Inform participants that an employee can defraud the company and/or the company can defraud investors or the

P a g e | 33

public.

Ensure participants can differentiate between capital and debt investors.

A capital investor makes an investment in a company to become part-owner. The uncle in the eBay

scenario would be a capital investor.

A debt investor provides financing by loaning the company money. Their return on the investment is

interest.

Ask for a volunteer to pick one fraud scheme from the list the class prepared that defrauds capital investors and one

scheme that defrauds debt investors.

Demonstrate how a fraud scheme to defraud an investor can be accomplished by either understating or overstating

revenue using the eBay scenario.

In the eBay scenario, you’d want to overstate income to attract investors. You might want to understate

income to keep down the amount of money you have to pay out to existing investors.

Identify one scheme on the fraud list that involves overstating income and one scheme that involves understating it.

Point out the difference.

Materials


5. Flip chart paper


presentation.


Assessment Evidence

Learners will be assessed by the quality of the class discussions and completion of activities. A “check your

understanding” activity (Activity 2.4) will be provided later in the course to assess whether learners can identify

fraud in the business process flow and sources of evidence of fraud.

P a g e | 34


Section 4 Check Your Understanding

15 minutes


Objective Ensure participants can identify how the basic business

process impacts an audit.

Big Understandings

This section includes an activity that assesses whether

learners understand the concepts covered in the

previous 3 sections. It allows learners to apply the

knowledge obtained.

Opening Hook

Let’s check our understanding of the concepts learned in the previous 3 sections. We will put that knowledge into

action.

Instructional Strategies/Student Activities Refer learners to Activity 2.4. Have groups answer the questions in the activity.

Activity 2.4: Check Your Understanding

1. An unscrupulous small business owner decides he wants to keep more of the profits of his business

for himself—at the expense of his business partner who gets 50% of the net profits. To decrease the

amount of money his partner is making, what might this small business owner do?

a. Understate expenses

b. Understate revenue *

c. Understate both expenses and revenues

2. What else could he do to line his own pockets at the expense of his partner?

a. Overstate expenses *

b. Overstate sales income

c. Overstate both expenses and income

3. How can revenue be erroneously overstated?

a. Record revenue prematurely in the wrong period*

b. Defer recording inventory received

c. Defer recording expenses incurred (Leader note – This overstates net income not revenue.

The question asks “How can revenue be erroneously overstated?”)

4. If the business owner in the first question decides to go through with his plan, who would he be

defrauding?

a. The company (Leader note – The business owner owns 50% of the business. Therefore, he

would be defrauding himself and/or his partner. It is likely that he would not defraud

himself. Therefore, we would assume he would be defrauding his partner who is also

considered a capital investor.)

b. A capital investor *

c. A debt investor (Leader note – In this example, there is no mention of a debt investor. In

addition, if the business owner was to defraud a debt investor, he would overstate the

performance of the company versus understating the performance similar to the scenario

describe in question 1.)

5. The business owner decides to defraud his partner by understating revenue. If his business partner

suspects that revenues are being understated, how can he find evidence?

a. Review the financial statements for inconsistencies

b. Compare the invoices from their suppliers to the disbursements recorded in the general

ledger

c. Reconcile sales invoices to revenue recorded on the financial statements *

6. To understate revenue, the owner decides to override the figures recorded in the general ledger by

posting an entry. Which two documents will no longer reconcile?

a. The sub-ledger and the trial balance *

b. The general ledger and the trial balance

c. The trial balance and the financial statements

7. A financial software package at a medium-sized company was inadvertently mis-configured by a

P a g e | 35

contractor. It has incorrectly recorded a few large December expenses in the following year. This

artificially increased this year’s profits, which resulted in the business being able to secure a larger

loan than they otherwise could have. Is this a case of a misstatement due to error or fraud?

a. Error *

b. Fraud against capital investors (Leader note – Some participants may select fraud. The

difference between fraud and error is intent. Since the contractor inadvertently mis-

configured the software, it would appear there was not intent. Therefore, the misstatement

was caused by error.)

c. Fraud against debt investors - (Leader note – Some participants may select fraud. The

difference between fraud and error is intent. Since the contractor inadvertently mis-

configured the software, it would appear there was not intent. Therefore, the misstatement

was caused by error.)

8. A process glitch has resulted in a company recording some expenses multiple times on the general

ledger. How might an auditor catch this problem?

a. Comparing expenses per the sub-ledger to the general ledger *

b. Adding up expenses in the general ledger and comparing them to the trial balance

c. Adding up expenses in the journal entries and comparing them to the sub-ledgers

9. Fill in the blanks in this basic business process flow:

customers

suppliers

journal entry

$ A/P

$ A/R

sub-ledger

general

ledger

trial balance

financial

statement

readers

goods/

services

goods/

services

lenders

owners

debt paymnts

interest paymntsfinancing

debtcapital

contributions

return on

capital

human

resources

services

compensation

P a g e | 36

Materials


presentation.


Assessment Evidence

Learners will be assessed by the completion of Activity 2.4.

P a g e | 37

Merrill’s 5-Star model consists of 5 sections (stars). The five sections (stars) are problem,

activation, demonstration, application, and integration. Each section (star) is rated as bronze,

silver, and gold based on receiving 1, 2, or 3 points respectively. One point is awarded in each

section (star) for each affirmative answer to the questions included in that section.

Section (Star) Yes No Task (Problem)

Is the lesson plan presented in the context of real world problems?

Does the lesson plan show learners the task they will be able to do or the problem they will be

able to solve as a result of completing a module or course?

Are student engaged at the problem or task level not just the operation or action levels?

Does the lesson plan involve a progression of problems rather than a single problem?

Activation

Does the lesson plan attempt to activate relevant prior knowledge or experience?

Does the lesson plan direct learners to recall, relate, describe, or apply knowledge from relevant

past experience that can be used as a foundation for new knowledge?

Does the lesson plan provide relevant experience that can be used as a foundation for the new

knowledge?

If learners already know some of the content are they given an opportunity to demonstrate their

previously acquired knowledge or skill?

Demonstration

Does the lesson plan demonstrate (show examples) of what is to be learned rather than

merely tell information about what is to be learned?

Are the demonstrations (examples) consistent with the content being taught?

Examples and non-examples for concepts?

Demonstrations for procedures?

Visualizations for processes?

Modeling for behavior?

Are at least some of the following learner guidance techniques employed?

Learners are directed to relevant information?

Multiple representations are used for the demonstrations?

Multiple demonstrations are explicitly compared?

Is media relevant to the content and used to enhance learning?

Section (Star) Yes No Application

Do learners have an opportunity to practice and apply their newly acquired knowledge or

skill?

Are the application (practice) and the posttest consistent with the stated or implied objectives?

Information about practice requires learners to recall or recognize information.

Parts of practice requires the learners to locate, name, and/or describe each part.

Kinds of practice requires learners to identify new examples of each kind.

How to practice requires learners to do the procedure.

What happens practice requires learners to predict a consequence of a process given

conditions, or to find faulted conditions given an unexpected consequence?

Does the lesson plan require learners to use new knowledge or skill to solve a varied sequence

of problems and do learners receive corrective feedback on their performance?

P a g e | 38

Section (Star) Yes No In most applications or practice activities, are learners able to access context sensitive help or

guidance when having difficulty with the instructional materials? Is this coaching gradually

diminished as the instruction progresses?

Integration

Does the lesson plan provide techniques that encourage learners to integrate (transfer) the

new knowledge or skill into their everyday life?

Does the lesson plan provide an opportunity for learners to publicly demonstrate their new

knowledge or skill?

Does the lesson plan provide an opportunity for learners to reflect on, discuss, and defend their

new knowledge or skill?

Does the lesson plan provide an opportunity for learners to create, invent, or explore new and

personal ways to use their new knowledge or skill?

P a g e | 39

POST-TEST ANSWER KEY

Answer each question.

1. Describe, in your own words, the meaning of “problem” by explaining the 3 questions


Explanations should include how problems are presented to learners, learner engagement,

and progression of content.

2. Describe, in your own words, the meaning of “activation” by explaining the 3 questions


Explanations should include how learning is activated in learners.

3. Describe, in your own words, the meaning of “demonstration” by explaining the 3

questions that comprise the section.

Explanations should include references to demonstrations, guidance, and media within the lesson.

4. Describe, in your own words, the meaning of “application” by explaining the 3 questions


Explanations should include practice and testing, activities, and access to help within the lesson.

5. Describe, in your own words, the meaning of “integration” by explaining the 3 questions


Explanations should include how the lesson is integrated into the lives of the students.

P a g e | 40

6. Review the provided lesson plan and rate the instruction utilizing Merrill’s 5-Star model.

You may use the rubric that was provided in the workshop.

Section (Star) Award a Star?

(Yes or No)

Star rating (Bronze,

Silver, Gold)

Problem Yes Gold

Activation Yes Gold

Demonstration Yes Silver

Application Yes Silver

Integration Yes Gold

dr. m. david merrill’s 5 star instructional design model … a g e | 3 analysis introduction this...

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