The inspection information leak that led to dismissals at KPMG and the Public Company Accounting Oversight Board raises big questions about how the audit regulator is assuring fair and transparent inspection results for all Big 4 firms.
KPMG and the PCAOB were quick to condemn those involved in the transfer of confidential information that enabled some audit partners to know before routine inspections which of their audit files would be inspected. The leak is problematic because it creates a huge opportunity for a partner to take a final look at a given audit file to assure it contains all the right documentation and evidence to support the audit opinion.
