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Audit inspections show some gains in internal control

Tammy Whitehouse | August 19, 2016

Audit regulators are encouraged by a reduction in the number of audits with problems in the internal control findings, but they are still troubled by the nature of the problems they identify.

Among the Big 4 firms in the United States, the overall number of audit deficiencies related to internal control improved in 2014 inspections, said Jeanette Franzel, a member of the Public Company Accounting Oversight Board. From a high in 2013 where inspectors found internal control problems in 36 percent of all Big 4 audits inspected, the figure dropped to 30 percent in 2014, according to data Franzel presented during a recent address to the American Accounting Association.

The improved number is encouraging, but that figure is still high in Franzel’s view,...

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