September 14, 2004
PCAOB: Auditing the Auditors
An interview with the head of the PCAOB (Public Company Accounting Oversight Board), William J. McDonough, by CPA2Biz sheds some light on the types of investigations and reviews that public company audit firms will now be experiencing. It is as extensive as those that are performed for the auditors' clients. This is all thanks to Sarbanes-Oxley that established this oversight board.
An excerpt from the interview is shown here:
Part of the work will be a very intense look at the overall management and conduct of the firm, "what we call "tone at the top." Are they getting the message across that audit is their most important product? Are good auditors being compensated for being good auditors — not for bringing in collateral business, the cancer that destroyed Arthur Andersen? We will also be looking at individual audit engagements. Last year we examined 16 in each Big Four firm. This year we will be doing several hundred each. The reviews are very thorough. We review the work papers, interview the engagement partner, the partner that reviewed the engagement partner's work, and then talk with people involved in the audit, to see whether this message of absolutely high-quality audits is being carried to the rank and file."
See the complete article at: https://www.cpa2biz.com/News/Selected+Features/The+Enforcer.htm
For more information on Issues Central Sarbanes-Oxley Compliance Playbook(tm) see: www.issuescentral.com
An excerpt from the interview is shown here:
Part of the work will be a very intense look at the overall management and conduct of the firm, "what we call "tone at the top." Are they getting the message across that audit is their most important product? Are good auditors being compensated for being good auditors — not for bringing in collateral business, the cancer that destroyed Arthur Andersen? We will also be looking at individual audit engagements. Last year we examined 16 in each Big Four firm. This year we will be doing several hundred each. The reviews are very thorough. We review the work papers, interview the engagement partner, the partner that reviewed the engagement partner's work, and then talk with people involved in the audit, to see whether this message of absolutely high-quality audits is being carried to the rank and file."
See the complete article at: https://www.cpa2biz.com/News/Selected+Features/The+Enforcer.htm
For more information on Issues Central Sarbanes-Oxley Compliance Playbook(tm) see: www.issuescentral.com
