PCAOB takes PwC to task

There has been a lot of talk about how the new Sarbanes-Oxley, as rendered in the PCAOB's AS5, will ease the burden and make audit firms less conservative in their approach. But you have to wonder, despite all the talk of a principles-based system, if that is really possible. Consider the scolding that PricewaterhouseCoopers just took from the PCAOB. (It should be said that other accounting firms regularly take similar medicine.) The PCAOB review found various GAAP errors, instances where standard audit procedures were not followed, cases of improperly documented work, and so on. PwC takes issue with a lot of the critique, but the point is that when it comes to audits, audit firms have every reason to be a big pain in the butt.    

For more on PwC and the PCAOB:
- here's a cfo.com article

Related Articles:
Former PwC auditor barred from industry
PwC ensnared in backdating controversy
Time to really implement continuous auditing?