The Public Company Accounting Oversight Board (PCAOB) has published its report on the inspection of BDO USA. In nine of the 23 audits reviewed, deficiencies were of such significance that it appeared to the inspection team that the firm, at the time it issued its audit report, had not obtained sufficient appropriate audit evidence to support its opinion.

However, the PCAOB warned against using the number of audits with deficiencies to draw any conclusions about the frequency of deficiencies throughout the firm's practice overall. The PCAOB said: “The audits to be reviewed are most often selected based on perceived risk and not through a process designed to identify a representative sample that could be extrapolated to the firm’s entire practice.”

The PCAOB inspection team also assessed BDO USA's system of quality control related to issuer audits but, as is its common practice, noted that any criticisms or discussions of defects or potential defects in that system will remain private unless the firm fails to address them within 12 months after the issuance of the report.

The most frequently identified issue was a failure to sufficiently test the design and/or operating effectiveness of controls that the firm selected for testing (seven audits), followed by failure to sufficiently evaluate significant assumptions or data that the issuer used in developing an estimate (five audits).

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.