This got by us for some reason, but Compliance Week noted Crowe Horwath's atrocious error rate in its 2011 PCAOB inspection reports was by far the worst among the eight largest audit firms.
Here's the ranking of firms, from best to worst, and their error rate:
1. KPMG — 22.6%
2. EY — 35.7%
3. BDO — 39.1%
4. Grant Thornton — 40%
5. PwC — 41%
6. Deloitte — 42.3%
7. McGladrey — 50%
8. Crowe Horwath — 61.5%
CW mentions that Crowe's error rate in '09 was 15.3% so this is quite a plunge. Whether or not this is the bottom is another matter.
As you can see, KPMG comes in as for the overachiever here; it isn't quite a British Open victory, but hey, it's something.
Why do we let corporations pick their auditors? Why do we have only four big firms instead of a dozen, a score or more? Why doesn’t government do the audits, as the IRS does tax audits? Why is law enforcement handcuffed by inadequate budgets and rules that hinder investigations? Why are auditors allowed to quietly resign instead of being required to blow the whistle? Auditing needs a shakeup, fundamental restructuring and the accounting firms need a serious debate about their failings, practical and moral. [