China Tells Its State-Owned Orgs Don’t Use Big 4 Audit Firms
Some time last year PCAOB inspectors visited China and while details of their visit were kept somewhat quiet from both sides, we were told that the inspectors gained unprecedented access to Chinese audit work. This event did not come about because China suddenly warmed to the PCAOB, rather Congress urged their cooperation along with the […]
Grant Thornton and Five Other Firms Got Coal in Their Stockings From the PCAOB
The PCAOB added six audit firms—three international, including a KPMG affiliate, and three in the U.S., including Grant Thornton—to its 2022 naughty list on Dec. 22 for not making required disclosures on Form 3. If a PCAOB-registered accounting firm is a defendant or respondent in an administrative or disciplinary proceeding that was initiated by another […]
“Rise of the Robots” – It’s Time for Accountants to Be Afraid
“They’re coming – for your job.” That’s the ominous message for everyone benighted enough to believe in job security under the Big Audit model, as delivered by Martin Ford in last year’s Financial Times business book of the year, Rise of the Robots. Ford’s book brings focus to the question posed here at Going Concern […]
Audit Firm Violates Independence Spectacularly
Has it been awhile since we've discussed an egregious independence violation committed by an audit firm? Yes, I think it has. The drought ends with this PCAOB disciplinary order in the matter of Moss, Krusick & Associates ("MKA") and Joseph M. Krusick, CPA. Krusick was the engagement partner on Credit One Financial, Inc. a company […]
‘An Insult to the Accounting Profession’ and Other Highlights From Comments on the PCAOB’s Proposal to Disclose Names of Audit Firm Partners
Yesterday was the deadline for commenting on the PCAOB's concept proposal for disclosing the name of audit partners and "other participants in the audit." If this sounds familiar, it's because this was Plan C from the PCAOB (fourth round of comments) on this proposal and, miraculously, audit firms seem willing to live with disclosing partner […]
Audit Firm Overbills Client, Client Fires Audit Firm
Audit firms and their clients squabble over fees. It is known. But why does this happen? Simply, you can chalk it up to a difference of opinion — the audit firm believes it is providing a valuable service. The client disagrees. Most audit firms are sensitive to this so they try to offer a reasonable […]
Let’s Argue Over the Best Place to Put Audit Partners’ Names on Reports
You may have noticed an important article Colin shared in ANR this morning, one which explains the most contentious issue in accounting today (besides the GC most overrated list). From Michael Rapoport over at the Wall Street Journal: The Public Company Accounting Oversight Board, the government's audit regulator, expects to give final approval in the […]
Here’s How the Top Eight Audit Firms Ranked in PCAOB Inspection Error Rate
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 […]