The Public Accounting Oversight Board has criticised PricewaterhouseCoopers and Deloitte over audit deficiencies after undertaking audit inspections of the firms.

According to the Wall Street Journal the US audit watchdog had criticised both firms for audits conducted in 2005. The PCAOB said that Deloitte had failed to obtain sufficient evidence to back up decisions in a number of audits of public companies.

PwC was also slammed for improper applications of generally accepted accounting principles and inadequate checks on revenue value, inventory and accounts receivable.

PwC said it was performing quality audits and that it would 'incorporate the board's findings' into its practices. Deloitte disagreed with the board's conclusions in nearly two thirds of the audits cited, offering a rebuttal of many of the board's criticisms as part of a response letter included with the PCAOB's report.

Firms have 12 months to correct any deficiencies cited by the PCAOB

Further reading:

Visit the PCAOB here

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