Actually, if you’re in to this sort of thing, it could make for some pretty interesting reading.
We pointed to a couple of reports this morning (and there are more) out there on the Board’s criticisms of the two firms, so we won’t repeat them here. The most notable thing seems to be each firm’s response to the report. KPMG went with the standard three-paragr��������������������er that promises that they’ll suck less at auditing in the future.
2011_KPMG_LLP_US
But as Floyd Norris pointed out, PwC’s Chairman and Senior Partner Bob Moritz as well as Assurance Leader Tim Ryan put their names on the firm’s response to the Board’s inspection that outlined what steps were being taken to improve the audit quality, which is a first. The firm also released this statement from BoMo, acknowledging the slight uptick in deficiencies:
PwC is built on our reputation for delivering quality. We also recognize that the role we play in the capital markets requires consistent, high-quality audit performance. We therefore are focused on the increase in the number of deficiencies in our audit performance reported in the 2010 PCAOB inspection over prior years. We are working to strengthen and sharpen the firm’s audit quality, including making investments designed to improve our performance over both the short- and long-term.
2011_PricewaterhouseCoopers_LLP
So you can all this – signatures, action plans, etc. – for what it’s worth but the messaging has certainly changed and it differentiates PwC from KPMG. Will have to wait and see if Deloitte or E&Y follow suit.
The professional skeptic in me is concerned. Why did they have change in another auditors after 4 years?
I don’t think that’s skeptical at all. I think that’s a highly relevant question.
We are hearing win after win, however, this has been a worst year for employees at senior level. We are asked to work crazy number of hours every day, and at the end of the year senior management gets all the profits and bonuses. It is frustrating what is going on here in EY London with no pay increase, no bonus and no promotion. Promotiond are done based on personal likes and dislikes of few people which is very frustrating for all for us.
Same thing here for another B4 somewhere in the western US. Been busting my rear on multiple engagements. Worked 3 months straight without a day off. Won some work even during COVD. My supervisor could give 2 sh!ts, isn’t putting me up for promotion. Meanwhile, one of my colleagues, who doesn’t contribute to the Firm at all other than his 40 chargeable hours per week on a loan staff gig, just got promoted.
Not surprised. My experience was worse
It does seem like they change a lot when they are not required to. I don’t think they like getting comments in their report. The auditor before the last one was PWC and they didn’t have any reportable issues. They are shopping.