On May 1, 2012, the Public Company Accounting Oversight Board (PCAOB) announced changes to its website (www.pcaobus.org) where site visitors can now review certain public information provided by audit firms, which includes registration, annual and special reporting, disciplinary proceedings and inspection reports.
The PCAOB was created in 2002 as a result of the Sarbanes-Oxley Act. As required by the act, auditors of US public companies are subject to external and independent oversight, by the PCAOB. The SEC maintains authority over the PCAOB, with respect to rules, standards and budgets.
As of April 25, 2012, there were 2,378 registered firms (foreign and domestic), as well as 42 pending applications. As of May 7, 2012, information for 1,627 inspection reports was provided, including 118 “QC criticisms now public.” A quick review of the Big 4 Audit firms showed –
|Firm||Entity Reports||QC Criticisms|
|Deloitte & Touche||18||1|
|Ernst & Young||30||0|
This type of information can only benefit companies/issuers that are looking for a new auditor for their private or public concern.
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