Both KPMG and Ernst & Young have been criticised by the Public Company Accounting Oversight Board for failing to follow accounting rules or gather sufficient evidence for their judgments in a handful of audits.
The criticism followed the PCAOB’s final two inspection reports on 2004 corporate audits and is part of its annual inspections of the Big Four accounting firms.
The PCAOB is required by law to annually inspect accounting firms that audit more than 100 public companies.
It has been criticised for the length of time it takes publish these reports and has promised to speed up the process.
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