View all newsletters
Receive our newsletter - data, insights and analysis delivered to you
  1. News
September 29, 2010

PCAOB: US auditors fell short during global crisis

The US oversight board has recommended auditors improve their quality control systems.

The Public Company Accounting Oversight Board (PCAOB) made the recommendations after it found auditors fell short of complying with auditing standards due to the pressures of the global financial crisis.

Compliance suffered particularly in areas such as fair value measurements, impairment of goodwill, indefinite-lived intangible assets, allowance for loan losses, off-balance-sheet structures, revenue recognition and inventory and income taxes.

The findings indicate that some auditors were less diligent in assessing and responding to emerging areas of risk when economic and business conditions changed.

The PCAOB said it will now also consider whether additional guidance is needed in relation to existing standards.

The report published by PCAOB covers aspects of the board’s inspections conducted during the 2007 to 2009 inspection cycles.

NEWSLETTER Sign up Tick the boxes of the newsletters you would like to receive. A roundup of the latest news and analysis, sent every Wednesday.
I consent to GlobalData UK Limited collecting my details provided via this form in accordance with the Privacy Policy
SUBSCRIBED

THANK YOU

Thank you for subscribing to International Accounting Bulletin