PCAOB Continues Sadistic Treatment of Accounting Firms' Audits

Since none of you decided to spend your weekend reading and reporting on the PCAOB inspection reports on Grant Thornton and BDO, we had rely on CFO to give us the gory details.

We'll give you the skinny on G to the T first and we'll hit BDO later.

CFO:

Deficiencies highlighted in the inspection report on Grant Thornton, meanwhile, included failures to "identify or appropriately address errors" in clients' application of GAAP. In addition, inadequacies were said to have been found with respect to performing necessary audit procedures, or lacking adequate evidence to support audit opinions.

Tramp Interpretation: With regard to "identify or appropriately address errors", it appears that GT doesn't know their GAAP or they haven't found any effective passive-aggressive methods of informing their clients that they don't know how to apply GAAP.

Regarding "inadequacies...performing necessary audit procedures or lacking adequate evidence to support audit opinions": staff on the engagement didn't understand what they were supposed to do, or they attempted to do something and did it half-assed. Managers and partners on the engagement were apparently okay with that.

Grant Thornton responded to the report with a written response that included the following:

"While we believe that the PCAOB should continue to challenge judgments and documentation during the inspection process, we do not believe that, in the end, reasonable judgments should be criticized and second guessed. Such a process will ultimately lead to inefficient audits due to the fear of unnecessary criticism."

Tramp Interpretation: We are much smarter than you. We are very sensitive and don't like being questioned. This oversight business isn't really for us. We suggest that it be done away with.

Audit Overseer Faults BDO, Grant Thornton [CFO.com]

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PCAOB Releases Grant Thornton and BDO Seidman Inspection Reports

Light reading for the weekend:

Grant Thornton

BDO

Everyone owes 500 words for each firm by Monday morning. We'll address here at some point. The weekend is getting started early so don't expect it to be today. Sphere: Related Content

Grant Thornton is Right in the Middle of this Whole Mess

Grant Thornton's UK office is neck deep in this whole Madoff Ponzi seized assets shitstorm drama. They're currently battling in bankruptcy court with Irving Picard, the trustee overseeing the liquidation in the U.S., to see if they can grab every nickel they can. Sounds like things were semi-cool but then this happened:

"The dispute between the two sides has escalated after GT liquidators seized a vintage Aston Martin worth $235,000 (£145,000) earlier this year which had been bought through Madoff’s UK operations."

A six figure car will get some attention regardless but we're talking about Madoff victims here. Picard is already getting sued by the victims so if he lets GT get their mitts on this little baby, there's really going to be hell to pay.

GT liquidators in US court battle for Madoff assets [AccountancyAge] Sphere: Related Content

Grant Thornton's Hocus Pocus Optimism Index Rises Above Pre-Recession Levels

Grant Thornton has put out its quarterly "Business Optimism Index" and somehow gets to a score of 54.5 compared to only 37.6 in February '09. This leads the firm, if you remember, that has a passion for the business of accounting*, to believe that business leaders are more confident about the economy.

Call us former auditors, but we're skeptical about this "Index". Less than half (45%) of the respondents believe the economy will improve, 62% are very or somewhat optimistic about their own business, and only 20% expect to increase staff, in the next six months.

TA-DAH!!!

*We'd like to go on record that those commercials with the guy dancing with a rose in his mouth, that were constantly running on CNBC, might be the worst attempt by an accounting firm to market itself. Just sayin'.

Grant Thornton LLP Business Optimism Index up to pre-recession level [Grant Thornton Press Release] Sphere: Related Content

Grant Thornton: Meet the New Boss, Same as the Old Boss

Edward Nusbaum is the new CEO of Grant Thornton International, replacing David McDonnell who spent eight years in the role.

Ed was so psyched: "'I will dedicate myself to continuing the Grant Thornton tradition of strong leadership in the accounting profession and in speaking out on issues of importance."

Vomit.

Grant Thornton announces new global CEO [AccountancyAge] Sphere: Related Content