Audit regulators concluded after 2011 and 2012 inspections that BDO USA had some systemic problems with exercising adequate skepticism and conducting its own internal audit reviews.
The Public Company Accounting Oversight Board has republished the firm’s 2011 and 2012 inspection reports to criticize the firm openly for what the board considers an inadequate response to inspection findings in those years around audit quality control problems. The reports say in both years that inspectors found too many cases where auditors too readily accepted management representations without appropriately considering contradictory evidence, contributing to many of the audit failures noted in those reports.
