Simple puzzle

A lesson in exercising professional judgment https://heleo.com/80-people-couldnt-solve-simple-puzzle-heres-can-learn-mistake/19562/

Unconscious bias - ways to overcome

https://www.forbes.com/sites/forbescoachescouncil/2018/11/19/unconscious-bias-and-three-ways-to-overcome-it/#1cff1d4d2677

Internal control questions companies should ask

https://cooleypubco.com/2018/12/10/sec-accounting-fellows-internal-control/

PCAOB rules for estimates and specialist

https://www.journalofaccountancy.com/news/2018/dec/pcaob-estimates-standard-201820339.html

PCAOB to consider rules - audit estimates and specialists

https://www.journalofaccountancy.com/news/2018/dec/pcaob-consider-rules-auditing-estimates-specialists-201820270.html

Emerging Technologies and audit committees

https://www.journalofaccountancy.com/news/2018/dec/audit-committees-address-emerging-technologies-201820249.html

Understanding blockchain

https://www.journalofaccountancy.com/podcast/ways-to-understand-blockchain.html

A resource to help firms determine treatment of critical audit matters

https://www.journalofaccountancy.com/news/2018/dec/lessons-learned-critical-audit-matters-201820234.html an earlier article is at https://www.journalofaccountancy.com/issues/2018/oct/critical-audit-matters-reporting.html

PCAOB inspections in 2019

https://www.journalofaccountancy.com/news/2018/dec/pcaob-inspection-focus-2019-201820237.html

Audit committee resource guide

https://www2.deloitte.com/us/en/pages/center-for-board-effectiveness/articles/audit-committee-resource-guide.html

Also this article on audit committee proxy disclosures

https://deloitte.wsj.com/riskandcompliance/2018/10/16/audit-committee-proxy-disclosures-to-enhance-or-not-to-enhance/?mod=djem_jiewr_AC_domainid

Fraud victim

https://www.accountingweb.com/practice/clients/what-is-the-real-cost-to-a-fraud-victim?source=ei111418

Fraud quiz

https://www.journalofaccountancy.com/issues/2018/nov/fraud-iq-quiz-financial-reporting.html

Professional Licensure being challenged

https://blog.aicpa.org/2018/11/licensure-under-fire-in-the-states-.html#sthash.i8MxcQaV.dpbs

AICPA ASB Oct 18 meeting highlights

https://www.podomatic.com/podcasts/asb201707/episodes/2018-10-31T08_27_06-07_00

PCAOB sanctions three

https://goingconcern.com/deloitte-mexico-auditors-attempt-to-phone-in-sloppy-audit-work-fail/

SEC issues cyberfraud alert

https://www.journalofaccountancy.com/news/2018/oct/sec-issues-cyberfraud-alert-201819928.html

Whistle-blowers shape history

https://www.ted.com/talks/kelly_richmond_pope_how_whistle_blowers_shape_history

Some free auditing course materials

https://www.drvpaz.com/auditing

Uh-oh for BDO

https://goingconcern.com/those-who-know-know-bdo-sucks-at-auditing/

Municipal fraud lessons

https://www.journalofaccountancy.com/newsletters/2018/oct/lessons-learned-municipal-fraud-cases.html

Big 4 revenues in 2018

https://goingconcern.com/deloitte-2018-global-revenue/

Risk Management Oversight

https://www.journalofaccountancy.com/issues/2018/sep/risk-oversight-can-inform-audits.html

CPA licensure - a deregulatory push

https://www.journalofaccountancy.com/news/2018/sep/deregulatory-push-threatens-cpa-licensure-201819465.html

Aaron Beam of Health South

https://www.journalofaccountancy.com/podcast/healthsouth-fraud-lessons-learned.html There is a 20 minute podcast with Aaron Beam discussing his time at Health South

A proposed standard change

Proposed revisions to SSAE 18. terminology for what have been known as "review engagements" is proposed. Comments due Oct 11. https://www.aicpa.org/content/dam/aicpa/research/exposuredrafts/accountingandauditing/downloadabledocuments/20180711a-ed-ssae-18-revisions.pdf

Language and fraud risk

https://www.journalofaccountancy.com/issues/2018/aug/how-language-affects-fraud-risk.html Much of the article is about nonverbal communnications, such as email, and the use of emojis in several contexts. Emojis being considered as evidence in legal hearings, and the idea of emojis as code words among a network of conspirators. Very interesting article.

Bentham Project

https://www.ucl.ac.uk/bentham-project/ Resources related to Jeremy Bentham, whose theory of utilitarianism is one ethical model helpful when considering ethical dilemmas

Rare book theft fraud

http://www.newser.com/story/262539/librarys-rare-books-manager-charged-in-8m-heist.htmll

Monopoly Fraud

https://www.businessinsider.com/how-mcdonalds-monopoly-game-was-rigged-2018-7

PCAOB revolving door of employees to audit firms

https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3205578 This paper provides basic facts on worker flows between former Public Company Accounting Oversight Board (PCAOB) employees and large audit firms. Using a large sample of publicly available curricula vitae, we document that an increasing number of former PCAOB employees join U.S. audit firms in senior-level positions during recent years. We also find that the number of PCAOB employees hired by these firms is positively related to the number of deficiencies reported in their prior PCAOB inspection report, and that the number of deficiencies reported in firms’ future inspection reports is negatively associated with the number of former PCAOB employees hired. However, this latter relation is not observed for the year in which these employees join the firm, but rather during the subsequent period when the employees would be less likely to have personal access to private information about the firm’s annual inspection. Although this pattern of findings is generally supportive of a “human capital” hypothesis, we are unable to rule out that the future reductions may be attributable to former PCAOB employees that obtain confidential information about future inspections via former colleagues at the PCAOB.

Critical Audit Matters

https://www.journalofaccountancy.com/news/2018/jul/understanding-critical-audit-matters-201819374.html

Board's role in maintaining ethical culture

https://www.journalofaccountancy.com/issues/2018/jul/corporate-board-role-ethical-culture.html

Design Thinking

https://auditfutures.net/designing-education We are developing resources and offer support in creating capacities for rethinking education and the future of work.

Fraud IQ quiz

https://www.journalofaccountancy.com/issues/2018/jul/fraud-iq-quiz-personal-information.html

Blockchain and impact on business schools

https://www.ozy.com/fast-forward/blockchains-next-disruption-business-school-programs/87586

Enhancing Audit Quality Initiative

https://www.aicpa.org/interestareas/peerreview/eaq.html

Art forgery

https://www.theguardian.com/news/2018/jun/15/how-to-spot-a-perfect-fake-the-worlds-top-art-forgery-detective

Deep learning technology

https://www.cpajournal.com/2018/06/21/icymi-deep-learning-and-the-future-of-auditing/

Improve your writing skills

https://www.journalofaccountancy.com/issues/2018/jun/improve-your-writing-skills.html

Blockchain - beyond the hype

https://www.mckinsey.com/business-functions/digital-mckinsey/our-insights/blockchain-beyond-the-hype-what-is-the-strategic-business-value

PCAOB Inspections: Public Accounting Firms on 'Trial'

https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3165769##

* Abstract* The objective of our paper is to obtain a better understanding of how auditors anticipate the potential for PCAOB inspection, experience the inspection, cope with the consequences of the inspection, and understand the PCAOB’s influence within the context of professionalism. We use a qualitative approach that employs both surveys (55) and interviews (20) of auditors (of varying rank and firm) across a five-year period (2012-2017). Respondents suggest that PCAOB inspectors are powerful, representing the ‘prosecution’, ‘judge’, and ‘jury’ of the auditing profession. We therefore employ a structural metaphor of the PCAOB inspection as a judicial ‘trial’. By controlling the criteria for which to evaluate performance, inspectors have the power to repeatedly ‘subpoena’, ‘interrogate’, and return a ‘verdict’ on the firm (auditor); those judged as ‘guilty’ require supervised ‘probation’. This process is perceived as having improved audit quality, but at a cost. Passing an inspection is so important, that auditors (firms) have resorted to impression management strategies and “functionally stupid” work practices (e.g., excessive documentation, a decrease in critical thinking as a result of a “box ticking” approach to auditing). Further, some respondents believe that being a good auditor has come at the expense of being a good accountant; the emphasis on audit process and concurrent de-emphasis on technical accounting could ultimately lead to audits themselves falling short. In addition, it is evident that inspectors and auditors differ in their perceptions of risk; likely manifesting because inspectors are standards focused while auditors (firms) are methodology focused. Finally, the inspection process has created excessive stress and tension, beyond budget and fee pressures, which some auditors perceive as affecting the pool of talented auditors that firms may be able to attract and retain in the future.
* Keywords:* Auditing, Inspections, Metaphor, PCAOB, Professionalism, Qualitative

Findings from Fraud Survey

https://www.ey.com/gl/en/issues/governance-and-reporting/center-for-board-matters/ey-integrity-and-the-future-of-compliance

Data Analytics and internal audit function

https://www.financialdirector.co.uk/2018/04/26/burden-to-buddy-how-process-mining-can-turn-internal-audit-into-a-key-partner-for-cfos/

International Code of Ethics changes

https://www.fm-magazine.com/news/2018/may/accounting-international-code-of-ethics-201818895.html Among the changes, extended cooling off period, changes to safeguards, and more provisions to come in the area of inducements.

Cryptocurrency

https://www.icpas.org/information/copy-desk/insight/article/digital-exclusive-2018/the-cpas-guide-to-cryptocurrencies

Risk Assessment Quiz and Resources

https://www.journalofaccountancy.com/news/2018/may/risk-assessment-in-audits-201818844.html
https://www.aicpa.org/interestareas/peerreview/eaq/aicpa-risk-assessment-resources.html

Round numbers and their role in fraud

https://www.journalofaccountancy.com/issues/2018/may/fraud-round-numbers.html

Cryptocurrency

https://www.pwc.com/us/en/cfodirect/publications/point-of-view/cryptocurrency-bitcoin-accounting.html

Tools to automate the audit

http://blog.aicpa.org/2018/04/these-tools-can-automate-parts-of-your-audit.html#sthash.IXVWwQX5.BCTjTupz.dpbs

Facebook audit

https://www.nytimes.com/2018/04/19/technology/facebook-audit-cambridge-analytica.html

Fraud in small businesses

https://www.journalofaccountancy.com/news/2018/apr/acfe-report-big-fraud-problems-small-businesses-2018-18780.html

SOC 2 reports and resources

http://blog.aicpa.org/2018/04/soc-2-reports-get-an-update.html#sthash.cpoIuFjL.dpbs

https://www.aicpa.org/interestareas/frc/assuranceadvisoryservices/socforserviceorganizations.html

Cryptocurrency

https://www.icpas.org/information/copy-desk/insight/article/digital-exclusive-2018/the-cpas-guide-to-cryptocurrencies

PwC and Colonial Bank

http://retheauditors.com/2018/03/21/an-update-on-the-case-of-pricewaterhousecoopers-and-colonial-bank/

Corruption scandals

https://247wallst.com/special-report/2018/03/27/worst-corruption-scandal-in-each-state/4/

Governmental auditing quiz

https://www.journalofaccountancy.com/news/2018/mar/governmental-auditing-single-audits-201818428.html

Theranos fraud

https://www.marketwatch.com/story/the-investors-duped-by-the-theranos-fraud-never-asked-for-one-important-thing-2018-03-19

2018 Taxonomies approved

https://www.accountingtoday.com/news/sec-oks-2018-reporting-taxonomies

Whistleblowers receive reward

https://www.reuters.com/article/us-usa-sec-whistleblower/u-s-sec-awards-merrill-lynch-whistleblowers-a-record-83-million-idUSKBN1GV2MT Bank of America, Merrill Lynch

Company struggles to link risk practices with strategy

https://www.journalofaccountancy.com/news/2018/mar/linking-erm-practices-with-strategy-201818607.html

Cryptocurrency monitoring by G20

https://www.reuters.com/article/us-g20-argentina-bitcoin/g20-agrees-to-monitor-cryptocurrencies-but-no-action-yet-idUSKBN1GW2IO

Blockchain opportunities for auditors

http://blog.aicpa.org/2018/03/4-new-opportunities-blockchain-could-create-for-auditors.html#sthash.3sh9pkv7.dpbs

An AICPA white paper examines what firms may be auditing in the future related to blockchain.

Proposed Independence rules for Information Services

https://www.journalofaccountancy.com/news/2018/mar/aicpa-independence-rules-for-information-system-services-201818577.html

Blockchain and audits

https://www.journalofaccountancy.com/news/2018/mar/how-blockchain-might-affect-audit-assurance-201818554.html

Internal audit improvements through technology

https://www.journalofaccountancy.com/news/2018/mar/improving-internal-audit-with-technology-201818551.html

Global Audit Inspection Findings

https://www.journalofaccountancy.com/news/2018/mar/global-audit-inspection-findings-show-improvement-201818537.html

Internal Audit fosters collaboration

https://www.journalofaccountancy.com/issues/2018/mar/effective-internal-audit.html Internal Audit fosters collaboration across three lines of defense In risk management, management control represents the first line of defense; risk and control monitoring represents the second line of defense; and independent assurance through the internal audit function is the third line of defense.

Quantum computing and blockchain

https://www.nationalreview.com/2018/02/quantum-computing-blockchain-technology-threat/

Blockchain

https://www.journalofaccountancy.com/podcast/ai-blockchain-automation-reinventing-accounting.html

Revised compilation and review reporting requirements

https://www.journalofaccountancy.com/news/2018/feb/compilation-and-review-report-ssars-24-201818423.html

Data Analytics

http://blog.aicpa.org/2018/02/start-your-audit-off-right-with-data-analytics.html#sthash.cjK74LFK.LJJj86Fp.dpbs

Bitcoin articles

https://www.cpajournal.com/category/bitcoin-blockchain/

COSO ERM - guidance for selective risks

https://www.coso.org/Documents/COSO-ERM-Guidance-Release.pdf?elq_mid=9885&elq_cid=601858

Guidance about audit reports

https://pcaobus.org/Standards/Documents/2017-12-04-Auditors-Report-Staff-Guidance.pdf effective for audits of fiscal years ending on or after Dec. 15, 2017

Proposed changes to Audit Report

http://blog.aicpa.org/2018/01/7-proposed-changes-to-the-auditors-report.html#sthash.Pm873zGB.dpbs