PracticeAuditPwC objects to PCAOB report faulting its audits

PwC objects to PCAOB report faulting its audits

PwC objects to USA’s PCAOB’s evaluation which faults the firm's audits for six of its clients

PricewaterhouseCoopers
(PwC) claims USA’s Public
Company Accounting Oversight Board (PCAOB)
‘s 2006 inspection report of
PricewaterhouseCoopers’ 2005 audits, released last week, is mistaken in finding
faults with the firm for not taking the proper steps to support its audit
opinion for six of its clients.

‘We have concluded that, in each instance, our original procedures were
sufficient to support our audit conclusions and the opinion rendered at the
time,’ PwC wrote in a letter to the PCAOB dated 26 September, published in the
auditor overseer’s report.

Despite its objection to the PCAOB’s findings, PwC responded to the criticism
by adding documentation to its working papers for one of the audits which the
regulator had included in the report, citing significant deficiencies.

In response to other audit deficiencies by PwC cited in the PCAOB report, PwC
said one of the PCAOB’s findings was ‘factually incorrect’ and in defense of an
audit the PCAOB said lacked proper testing, PwC said it had used ‘professional
judgment’.

Further reading:

PCAOB finds errors with KPMG’s audits

Naming and shaming on the audit agenda

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