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Will Auditors Be Held Accountable? The PCAOB Has A Plan

I view successful litigation against negligent auditors and strong enforcement of sanctions for auditor malpractice as positive developments. This is a view many of my readers would disagree with. However, I've learned over the last four years not to get too excited by any one positive development...

A Potentially Costly Combination: Deloitte, Taylor Bean and the PCAOB

If you follow news affecting auditors, you may have noticed that the PCAOB made a very rare disclosure yesterday about one of the big four firms, Deloitte. The PCAOB said that Deloitte was previously sanctioned for not being skeptical enough to challenge statements made by management and that they...

At Deloitte, More Pain Before Any Quality Gain

The PCAOB, the audit industry regulator, shamed global audit firm Deloitte recently when they exposed the private portion of the inspection report of the firm's 2006 audits. It was the first time that had happened to one the Big Four audit firms, the largest firms that audit the vast majority...

PCAOB Imposes Record Fine on E&Y in Public Proceeding

E&Y was censured and fined a record $2 million by the PCAOB in connection with repeated violations of professional standards. It was imposed in a proceeding that was filed in March 2011 as a non-public but which, for good cause shown, was made public. In the Matter of Ernst & Young LLP, PCAOB...

Four Years After Madoff, Audits and Auditors of Broker-Dealers Still Lousy

Last week I posted a column at Forbes: Already Behind The Eight-Ball: Auditors of Broker-Dealers Are A Disaster The Public Company Accounting Oversight Board, the US audit industry regulator, issued its first report on the auditors of broker-dealers this week and it was ugly. The PCAOB inspection...