US regulator critical of E&Y, KPMG audit work
Firms accused of gathering insufficient evidence
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
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.