PwC audits criticised in PCAOB report

The Public Company Accounting Oversight Board (PCAOB) has published two critical reports on PwC saying the firm failed to address quality control criticisms.

As reported by US accounting website GoingConcern.com, the board determined that as of 25 March 2010 and 12 August 2011, respectively, the Big Four firm had not addressed certain criticisms in the reports to the board's satisfaction.

PwC told the PCAOB that it would not seek a review of the PCAOB’s determination, which the firm has a right to do under the Sarbanes-Oxley Act and SEC rules.

However, PwC asked that a statement by the firm defending its audits be attached as an appendix to the report.

The statement read: “The execution of quality audits in full compliance with PCAOB standards is the top priority of our practice and something in which our professionals take a significant amount of personal and professional pride. We continue to support the mission of the Public Company Accounting Oversight Board.”

The PCAOB release made public certain previously undisclosed portions in part two of PwC’s 2008 and 2009 inspection reports - based on the determination that PwC did not address the matters to the PCAOB’s satisfaction during the year that following issuance of the reports.

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