PCAOB slams Big Four audits
US audit watchdog criticises a number of PwC audits just weeks after slamming Deloitte for audit deficiencies
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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