Big Four accounting firms bungle a third of US audits

[OfTheCross]

The Big Four accounting firms bungled 31% of the most recent US audits analyzed by their quasi-governmental watchdog, the Public Company Accounting Oversight Board (PCAOB). Yet despite the abysmal findings, the oversight board—which the US government empowers to police the audit firms—has rarely taken action against them.

The plethora of allegedly poor audits is not just a US issue. On Sept. 9, Britain’s own accounting watchdog, the Financial Reporting Council (FRC), lamented “undesirable inconsistency across the market.” A quarter of large company audits required significant improvements, it said. The FRC has amped up its enforcement efforts, fining auditors £32 million ($39.5 million) during the year ending March 31.

quartz

The obvious remedy is to separate the auditors from the accounting firms.

Or audit the firms directly...

[truth_seeker]

The obvious remedy is to separate the auditors from the accounting firms.

Or audit the firms directly...

Just what the US needs, is a bigger more costly powerful regulatory activity. As if they prevented the 2008 meltdown.

Barney Frank and Elizabeth Warren love you @OfTheCross.

Better to "Audit"  the CIA, the FBI, etc.