Wednesday, May 27, 2009

...And Then the PCAOB Celebrated at TGI Friday's

The PCAOB is continuing its rape and pillage of auditors of public companies. After having its way with Deloitte and McGladrey & Pullen, the PCAOB thought it would take a little detour through Times Square to E&Y.

According to the PCAOB, E&Y sucks at a lot of things including but not limited to:
  • Revenue recognition
  • Compiling enough evidence for valuation of securities
  • Obtaining appropriate evidence for estimating the valuation of income tax allowances


The deficiencies were linked to the firm's national office in New York and 22 of its 85 U.S. offices. These errors were significant enough for the oversight board to conclude the firm "had not obtained sufficient competent evidential matter to support its opinion on the issuer's financial statements or internal control over financial reporting."

Ok, so deficiencies at 22 out of 85 offices is approximately...not very fucking good.

Oh, and the best part is that two of clients with the revenue recognition deficiencies ending up restating their financial statements. Oops.

PCAOB Rips E&Y on Revenue Recognition [CFO]

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