Former PwC auditor barred from industry

At what point does the audit firm deserve the blame? Former PwC account executive Robert Fish has been barred from the industry for at least a year because of his role in the troubled case of video game company Take-Two. Cfo.com recounts how Fish failed to get to the bottom of an alleged attempt by the company to hoodwink him about its accounts receivable balance-- an area Fish had identified as high risk. Fish sought confirmation of key accounts receivable balances from Take-Two customers. But it received only one confirmation, which turned out to be false. He tried alternative audit procedures to verify the accounts receivable, but those were insufficient under GAAP. So it appears he should never have signed off. The SEC says this was part of a "parking" arrangement that the auditor should have uncovered. Cases like this are bad for all. You certainly don't want the auditor assuming the client is out to mislead them, but due skepticism is always a good idea.  

For more:
- here's the CFO.com article