Update on KPMG gaining access to PCAOB inspection schedule. Possible impact on inspection results.
The PCAOB released results of the inspections during the 2017 cycle. The results are not pretty. In addition, PCAOB released previously confidential comments from the 2015 report.
Michael Rapoport has the details in the Wall Street Journal on January 25, 2019: KPMG Gets Poor Marks From Audit Regulator / Regulator unseals sharp criticism of Big Four accounting firm’s quality during period spanning leak scandal.
In a painful phrase, the article quotes prosecutors as labeling this as a
“steal the exam” scheme.
In the 2016 audit cycle, PCAOB replaced 11 engagements that had already been reviewed with 10 others. Of the 11 replaced, 3 had significant deficiencies. Of the 10 replacements, 9 had deficiencies.
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