US regulator investigates audit shortcomings

THE US ACCOUNTING regulator is to investigate audit shortcomings surrounding the financial crisis.

PCAOB chairman James Doty said inspection teams have identified “audit failures” in a number of cases including major financial institutions, The Washington Post reports.

Doty (pictured above) recently told Accountancy Age the profession is going through a “period of self-examination”, saying the issue of what auditors do and what people understand about what they do is up for discussion.

Brushing aside complaints of too-big-to-fail firms and market concentration, he says the problem is “practices that dilute audit quality”, warning this will take a long time to fix.

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