September 23, 2020

The Auditors’ Auditors Got a Clean Audit Opinion From Their Auditors

The PCAOB posted their 2012 annual report to its website today and it's filled with all kinds of interesting information.

It's the end of a Monday, so we only managed to pull a few examples:

  • There were nine audit firms inspected in 2012 that had more than 100 public company audit clients in 2011. They were: BDO, Crowe Horwath, Deloitte, EY, Grant Thornton, KPMG, MaloneBailey, McGladrey, and PwC.
  • There were 999 U.S. registered audit firms and 716 non-U.S. registered audit firms that had no issuer audit reports.
  • China has 96 registered public accounting firms, second to only the U.S.
  • Here's a noteworthy observation we can't take credit for:

  • The PCAOB has a watchdog, the Office of Internal Oversight and Performance Assurance, which fulfills a role similar to a Inspector General for a government agency. Here's a list of all their reports. 
  • If you've ever earnestly asked the question, "Who audits the auditors' auditors?" the answer is: "Blum, Shapiro & Company, P.C." And yes, they got a clean audit opinion. It's on pages 38-39.
  • Financial statements start on page 41. They're remarkably unremarkable, but feel free to pick them over can call out anything noteworthy.

Get a load of the full report on the next page. It should keep you busy until tomorrow's open meeting.   


PCAOB 2012 Annual Report

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