The Public Company Accounting Oversight Board has delivered another harsh inspection report, this time to BDO USA, finding fault with 9 of 23, or 39 percent, of the audits inspected. That’s an increase over the firm’s failure rate of 26 percent in 2010, when inspectors called out eight of 31 audits they examined.
BDO is the seventh of the eight major firms to receive its 2011 inspection report, and none offer the kind of marked improvement that the PCAOB says it is trying to draw out of the firms. BDO joins Ernst & Young, PwC, Grant Thornton, and McGladrey in receiving inspection reports noting an increase in the rate of failed audits. KPMG’s failure rate held steady from the year before, and Deloitte’s rate improved slightly. The PCAOB has not yet published a 2011 inspection report for Crowe Horwath.
