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.

Influence of Governance Practices on Performance of County Governments in Kenya

The Kenyan government acknowledges that there has been poor performance in the public sector over the years, especially in the management of public resources, which has hindered the realization of sustainable economic growth. Governance presents the single biggest opportunity for operational efficiency in any organization; therefore, its adoption is paramount in public sector management. The study examined the influence of governance practices on the performance of county governments in Kenya. Specifically, the study sought to establish how internal controls, stakeholder participation, internal audit standards, and transparency influence the performance of county governments in Kenya. The study employed a descriptive research design. The target population was Heads of Departments in all Ministries, Chief Officers of all Ministries, and Members of the County Assembly. A structured questionnaire was used to collect data. Data gathered from the questionnaires administered was analyzed with the help of SPSS and Microsoft Excel. The study used multiple linear regression and correlation analysis to show the relationship between the variables. The study findings indicated that internal controls, stakeholder participation, internal audit standards and transparency have a positive and significant relationship with on performance of county governments' in Kenya. The entire null hypotheses was rejected. The study recommends that the County Government should encourage stakeholders to participate by incorporating their views in governance processes. A feedback mechanism should also be delivered where stakeholders are informed of the process of their participation and the key decisions that result from the participation. Further, the study recommends that there is need for the county government to come up with its calendar of events on its activities. Keywords: Internal Controls, Stakeholder Participation, Internal Audit Standards, Transparency, Performance & County Government.

Board committees and non-financial information assurance services

The objective of this study is to examine the role that the specialized committees, created within the board of directors, and the auditor play in relation to the hiring of a non-financial information assurance service and in relation to the choices of the assurance provider for such non-financial information. Specifically, this study analyses the effect of the independence and specialisation of the audit committee, the existence of a CSR committee, and the reputation of the financial auditor associated with its classification as Big4. The results indicate that those responsible for financial information do not show interest in contracting an assurance service, especially if it is realized by an accountant provider, except that the information is standardised according to the Global Reporting Initiative guidelines and the contracted service is comparable to the financial audit standards, has assurance for a reasonable/high level, and is carried out according to the ISAE3000 standard.

Ethical Rules of the Audit Profession and the Role of Compliance in Narrowing the Expectations Gap between Auditors and Financial Statements Users

The aim of the study is to identify the ethical rules of the audit profession and the role of its commitment in narrowing the expectation gap from the point of view of auditors in Jordan. For the purposes of collecting information related to the subject of the study, the researcher used a questionnaire directed to a sample of 44 auditors all subjected to analysis, and the researcher used descriptive statistical methods, and tested (T-test) for a single sample to test hypotheses. One of the results of the study included the role of auditors to adhere to the ethical rules of the audit profession (integrity, propriety, independence, competence, due professional care, and confidentiality of information) and to a high degree in narrowing the expectation gap. The researcher provided a range of recommendations, the most important of which are: the need for supervisors and regulators of the audit profession to hold conferences, training courses, workshops and seminars with the aim of increasing communication, educating and sensitizing users of financial statements on the nature of the work and duties of auditors to reduce the expectation gap. The need to strengthen the auditors' commitment to audit standards in general and the ethics of the audit profession and the rules of professional conduct in particular through the development of scientific curricula and study plans in the accounting departments of Jordanian universities

Financial Distress dan Opini Audit Sesuai Standar Audit (SA) 706 pada Masa Pandemi Covid-19

Covid-19 is a global health problem, including Indonesia. Covid-19 has had a huge impaction theicountry's economyias well as the companies affected by it. Many companies experience financial distress and this also has an impact on the audit opinion received by the company. This study aims to examine the effect of financial distress on audit opinion with SA 706. The sample obtained was 534 companies, obtained using purposive sampling technique. The data analysis technique in this research logistic regression analysis. The results of the analysis show that financial distress has an impact on audit opinion with Audit Standards (SA) 706. The theoretical implications of this study can contribute to empirical studies of agency theory and signal theory. The practical implication of this research is that it can be taken into consideration in decision makingbystakeholders and company management. Keywords: Audit Opinion; Audit Standards (SA) 706; Financial Distress; Covid-19.

SP3.2.9 The concordance between emergency CT reporting in non-traumatic abdominal pain with surgical findings at laparotomy

Aims Abdominal CT imaging is commonly used to assess the acute abdomen, and is relied upon by clinicians in decision making, often influencing the timeliness of intervention. Increased demand for CT imaging has led to departments out-sourcing reporting out of hours. The aim of this audit was to evaluate the concordance between emergency laparotomy findings and pre-operative CT reports. Methods 115 patients underwent emergency laparotomy with a pre-operative CT scan pertinent to the clinical episode (May 2019-October 2020). 2 surgical assessors independently assessed the CT reports and laparotomy findings to determine discrepancies. Using published audit standards, discrepancies were defined as major-felt to affect patient treatment- and further classified as false positive, false negative, misdiagnosis, indeterminate; or minor and unlikely to change course of patient care. Results 32/115 had discrepancies, 28/32 major (16/28 misdiagnosis, 4/28 false negative, 3/28 false positive, and 5/28 indeterminate). 71/115 reported by in house radiology. 19/71 discrepancies reported in house (16 major, 3 minor), 13/32 discrepancies reported by out of hours service (12 major, 1 minor). Relative risk of major discrepancies between in house radiology and out of hours service was 1.2 (p = 0.5). Conclusions Published audit standards are that CT reports should have >90% concordance with laparotomy findings; this audit found concordance in 76%. Further analysis comparing gastrointestinal vs. non-gastrointestinal specialist radiologist to assess the impact on concordance will be performed. We aim to explore the discrepancies, and seek to identify if our imaging and operating practices can be improved.

The Analysis of the Relationship between Key Audit Matters (KAM) and Firm Characteristics: The Case of Turkey

The role of audit profession and the implementation of new audit standards are aimed to improve the quality of audit reports and one of the recent improvements is the inclusion of Key Audit Matters (KAM) as a separate section in the auditor’s report. The aim of introducing KAMs is to give information about the areas of higher risk and the effect of most significant events. This study aims to contribute to the current literature by determining the matters which should be included as KAMs and the factors affecting KAM disclosure. It also examines the relationship between the total number of KAMs and firm level characteristics for the Turkish market. Our findings reveal that some of the firm level characteristics have a significant impact on KAM disclosures.

935 Identification and Management of Electrolyte Abnormalities in Surgical Patients Requiring Total Parenteral Nutrition: An Audit of Current Practice at A University Hospital

Aim Electrolyte abnormalities are a common and serious consequence of nutritional deficiencies when patients are nil-by-mouth. Timely intervention with a multidisciplinary approach is known to improve outcome. This audit aimed to assess adequacy of initial electrolyte management and timing of dietetics referral in acute surgical patients requiring total parenteral nutrition in a university hospital. Method A retrospective audit of all general surgery patients referred to dietetics for total parenteral nutrition between January-December 2019 was performed. The following audit standards (from the time following admission) were applied: monitoring of electrolytes every 48-hours, treatment of electrolyte abnormalities within 24-hours of discovery; and referral to the dietetics service within 48-hours of nil-by-mouth being commenced. Results Data from 52 patients (27 females, median age 66) were analysed. Fifty-one (98%) had electrolytes measured every 48-hours, however magnesium, phosphate and/or calcium were not measured prior to dietetics input in 9 (17%). Forty electrolyte abnormalities requiring treatment were found in 28 patients (54%), though only 18 (64%) commenced treatment within 24-hours. The most common electrolyte abnormalities not corrected within 24-hours were phosphate and calcium (50%). 46% of patients were referred to dietetics after 48-hours of nil-by-mouth status. Conclusions In our unit, we found that basic electrolytes were frequently monitored in patients placed nil-by-mouth, however calcium, phosphate and magnesium were often omitted prior to dietetics input, and correction of abnormalities was sometimes delayed. Introduction of a local protocol-based approach for electrolyte monitoring with streamlined dietetics referrals is likely to improve adherence to best practice.

315 Chaperone Documentation in The Breast Clinic: A Closed Loop Audit

Aim Intimate examinations are potentially uncomfortable and embarrassing. In addition to offering chaperones routinely, it is also important to clearly document the circumstances, with implications on patient dignity and safeguarding both patients and staff. We aimed to analyse the quality of chaperone documentation in the breast clinic before and after intervention. Method Audit standards (GMC and Chelsea & Westminster Trust guidelines): [1] Consent [2] Chaperone use/refusal, and [3] Chaperone role and identity should be clearly documented in the notes. We collected breast clinic data prospectively over one week, then re-audited after interventions including teaching sessions to the breast MDT, introduction of electronic (e)-notes (Cerner©), and creation of an instructional video demonstrating how to create an automatic template to easily document the aspects of chaperone use. Results 110 patients’ notes were analysed in the first cycle, and 74 in the second. Documentation improved significantly between cycle 1 and 2 for: consent (0% vs. 38%, p < 0.0001), identity of chaperone (12% vs. 35%, p = 0.0003), and role of chaperone (8% vs. 23%, p = 0.0091). Documentation for chaperone use or refusal improved, but this was not significant (27% vs. 35%, p = 0.3305). Conclusions Documentation improved significantly for most standards, likely due to the template prompting the clinician. However, documentation remains suboptimal. Possible reasons include forgetfulness in a busy clinic, or shortage of staff available to chaperone. Future recommendations include creating a mandatory template on the e-notes for all breast clinic documentation including a section for chaperone use, role, and identity, and providing more staff such as HCAs for the clinic.