Using Storytelling to Apply Lessons from PCAOB Enforcements
The real-life failures of others provide vivid opportunities to learn. Audit failures and rule infractions stemming from Public Company Accounting Oversight Board (PCAOB) inspections represent the few instances where detailed information about financial statement audits is made publicly available. The PCAOB enforcement reports contain a wealth of information and offer greater transparency in regard to the audits of SEC registrants. This project uses these reports to teach real-life lessons in the context of the complex regulatory environment in which registered audit firms operate. Students examine the information from these enforcements and then craft and present the stories of the related audit failures. This approach has a proven impact on learning, and students who completed the project reported enhanced knowledge of the regulatory process and audit standards. The student presentations can also be used in a professional environment for CPAs to earn CPE. We provide advice to faculty who wish to pursue a similar option.