Faith-based audits prevail at one in six US firms

The Public Company Accounting Oversight Board (PCAOB), has stated that "the eight biggest accounting firms failed in 22% of the audits it reviewed last year to gather enough evidence to support opinions issued by the firms that claimed a companys internal controls were effective." This does not mean, of course, that the companies being audited had inadequate controls - but the auditors did not collect enough information to know, one way or another. The PCAOB report describes the auditors' specific failings in some detail, and speculates on the root causes of their deficiencies, including inadequate levels of staffing and training ... READ MORE

Released by GMI Ratings - 7 January 2013