PCAOB report critical of Grant Thornton

The US Public Company Accounting Oversight Board has revealed several audit
deficiencies during its inspection of Grant Thornton’s 2005 audits.

These also included one which triggered a restatement, also detailed in a
report released by the PCAOB on Friday.

The body also took the firm to task on several occasions for not
corroborating management’s conclusions and for not providing proof that it had
conducted necessary testing in this regard.

The firm, however, has retaliated strongly to parts of the findings.

In a letter to the PCAOB, the firm said: ‘We strongly disagree with the use
of overly broad comments such as ”failure to perform.”

‘They do not adequately describe all of the relevant facts, nor do they
acknowledge the extent of the procedures that were, in fact, performed by the
engagement teams.’

Further reading:

Thornton Fires Back at PCAOB Criticism

US regulator critical of E&Y, KPMG
audit work

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