All Inspection Reports articles – Page 2

  • Blog

    2016 PCAOB inspection results will deliver mixed results


    When 2016 inspection results are published on the major audit firms next year, they will show an overall reduction in adverse findings, but also a spike in findings for at least one Big 4 firm. Tammy Whitehouse has more.

  • Blog

    KPMG's latest inspection shows more modest improvement


    KPMG's newest PCAOB inspection report shows another modest improvement in audit errors, although no one is yet jumping for joy over deficiency findings.

  • Blog

    Latest EY inspection shows improvement in error rate


    The latest PCAOB inspection report for EY show the firm failed in 29 percent of audits inspected in 2015 to perform a clean audit -- an improvement over 2014 results.

  • Blog

    PCAOB delivers searing inspection report to BDO USA


    BDO USA received a scathing 2014 inspection report from the PCAOB. Among the 23 audits the board selected for inspection, 17, or 74%, had issues, a record high rate among major firms. Of the 17 busted audits, 15 contained problems in both the audit of financial statements and the audit ...

  • Blog

    Study links audit staffing to audit quality


    Recent academic research from professors at the University of Alabama and Louisiana State University finds where audit engagement workload is high, companies have significantly higher abnormal discretionary accruals, are more likely to restate earnings, and are less likely to get a going concern opinion even when signs of distress are ...

  • Blog

    PCAOB Delivers Harsh Inspection Findings to KPMG


    The PCAOB’s 2014 inspection report for KPMG found fault with 28 of 52 audits selected for inspection, marking the first time errors have been found in more than half of the audits selected at a Big 4 firm. KPMG’s rate has crept upward every year since 2009 when the PCAOB ...

  • Blog

    PCAOB Admonishes BDO USA for Quality Control Lapses


    The PCAOB has republished BDO USA’s 2011 and 2012 inspection reports to criticize the firm’s inadequate response to inspection findings in those years around audit quality control problems. The inspectors found too many cases where auditors accepted management representations without appropriately considering contradictory evidence, contributing to many of the audit ...

  • Blog

    PCAOB Issues Crowe Horwath Inspection Report


    Image: The PCAOB found fault with five of 14 audits inspected at Crowe Horwath in 2014, a slight improvement for the firm over its 2013 results. The board’s 2014 inspection report revealed an audit deficiency rate of 36 percent, compared with 38 percent in 2013 and 50 percent in 2012. ...

  • Blog

    EY Shows Improvement in Latest Inspection Report


    EY earned a 36-percent deficiency rating in its latest audit inspection report, with the majority of the busted audits showing problems in both the financial statement audit and the audit of internal control over financial reporting—an improvement over its 2013 record failure of 49 percent, but not enough to beat ...

  • Blog

    Deloitte Inspection Report Shows Reduced Audit Deficiencies


    PCAOB audit inspectors found fault with 21 percent of the audits inspected at Deloitte in 2014, lower than any rate delivered for any major firm since 2009 and lower than Deloitte’s failure rate from one year ago. The report also revealed a new format for PCAOB inspection reports. More inside.

  • Article

    PCAOB Inspection Data: Shifting Standards, Shifting Insights


    Image: If you want to be panicky or cynical about audit firms’ performance, citing failure rates in PCAOB inspection reports is a great way to do it. The truth is more complex. In Part II of our series looking at PCAOB inspection data, we delve into how inspections have changed ...

  • Blog

    Audits Failures Linked to Execution, Not Process Problems


    Image: Dec. 10—Audits fail not so often because the audit firm’s process was flawed, but because individual auditors or engagement teams fail to adhere to firm methodologies, according to Jay Hanson, a member of the PCAOB. At a national accounting conference on regulatory issues, Hanson said he sees much more ...