The firm has had about all the fun it can handle trying to audit Chaoda Modern Agriculture.
In a statement Thursday, Chaoda said that in a letter on Apr. 26, BDO said that despite continuing with the audit for a prolonged period, it was not in a position to conclude. It said the move was based on a reassessment of the professional risk associated with the audit, among other factors. Chaoda said in a statement the auditor confirmed that there are no matters that need to be brought to the attention of the company's shareholders, but the decision will delay the resumption of trading in its shares. Chairman Kwok Ho said in the statement the company was surprised by BDO's decision and the reasons the auditor gave for the move.
Well team, despite the little setback for the PCAOB earlier this week, Team Peek is not discouraged. In fact, they were so motivated by the SEC’s little stunt that they thought they’d churn out three major inspection reports today, just to show everyone that they get to say what’s what with these accounting firms (even if it is in an indecipherable combination of vague and wonky prose).
BDO, Grant Thornton and PwC all got their papers issued today, which leaves just KPMG as the last major U.S. firm to not have their report issued. We’ll give you the quick and dirty on these three but if you want the gory details, you’ll have to read them in depth yourself (some o know). We’ll go in alphabetical order so no one gets bent out of shape.
BDO had eight issuers mentioned in its report. Issues included not testing the underlying data used by a specialist, failure to identify a departure from GAAP before issuing its audit report, loan losses and “[failure] to perform sufficient procedures to evaluate the reasonableness of a significant assumption management used to calculate the gain on the sale of a business,” among others.
GT only had five issuers listed in their report with problems including two instances of departures from GAAP that weren’t identified before the issue of the audit report, testwork related to fair value determination of illiquid assets and testwork around revenue recognition. Steve Chipman got away from the teleprompter long enough to sign the letter to the PCAOB himself, along with Trent Gazzaway, the National Managing Partner of Audit Services.
Nine issuers were noted by the inspectors for P. Dubs. Various issues ranging from inadequate testing of foreign locations, loan loss issues (that’s a given) and fair value (another surprise). PwC’s response made it sound like they actually enjoy the whole inspection process, “We continue to support the PCAOB and we wish to convey our sincere appreciation for the professional efforts of the PCAOB staff.” Wonder if the engagement teams that were inspected feel the same?
As most of us know, women are overrepresented in public accounting yet not necessarily rewarded for their hard work, dedication, and deftness in handling both career and family (for first and second years, substitute “family” for “sleeping with hot coworkers”). Knowing that, we’re thrilled to tell you that BDO has been chosen as one of the 2010 Best CPA Firms for Women by the American Society of Women Accountants and the American Woman’s Society of Certified Public Accountants. The award is an initiative of the ASWA and AWSCPA joint Accounting/MOVE project, a national research effort to measure progress and advance women at public accounting firms and corporate accounting employers.
The Accounting/MOVE project was especially impressed by BDO’s promotion of women within the firm tied directly to BDO’s training and retention initiative.
As a working mother AND woman myself, I find it appropriate to point out that not all women are mothers so it doesn’t necessarily mean any progress has been made on BDO’s work/life policies. It would be awfully presumptuous of everyone – and, frankly, a tad sexist – to assume as much. For some women, work/life balance simply means spending less time at work and more time hooking up with coworkers or pursuing other hobbies and activities that don’t involve dirty diapers and scrubbing crayon drawings off of the wall.
