The Briefing Room

General Category => Economy/Business => Topic started by: OfTheCross on October 02, 2019, 04:58:56 pm

Title: Big Four accounting firms bungle a third of US audits
Post by: OfTheCross on October 02, 2019, 04:58:56 pm

Quote

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 (https://qz.com/1705744/big-four-accounting-firms-are-bungling-a-third-of-us-audits/)

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

Or audit the firms directly...

Title: Re: Big Four accounting firms bungle a third of US audits
Post by: truth_seeker on October 02, 2019, 05:18:53 pm

Quote from: OfTheCross on October 02, 2019, 04:58:56 pm

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.