The Public Company Accounting Oversight Board had a harsh critique for several Deloitte & Touche audits performed by the firm last year. The PCAOB's report echoed many of concerns the regulators expressed last week about audits performed during the same period by KPMG.
The PCAOB's report pointed to the audits of eight unidentified companies as examples, and said in four cases, the board's inspection lead those companies to financial report restatements. The board said in many cases, company audits had outright accounting errors or disclosure deficiencies. In one instance, Deloitte's incorrect use of lease accounting standards lead to its using of a going concern for a company.
"We have taken appropriate action to address the matters identified by the inspection team...We are supportive of this process," Deloitte said in a statement.In the coming weeks, similar reports will be released for Ernst & Young and PricewaterhouseCoopers.
