New York State Comptroller Alan G. Hevesi blasted an East Setauket, N.Y.-based CPA firm for failing to identify a multi-million-dollar fraud, failing to meet several professional standards and violating auditor independence standards in its audits of a Long Island school district.

An audit by the comptroller's office said that Miller, Lilly & Pearce, which also audits 54 other school districts on Long Island and in the lower Hudson Valley, performed work "so flawed and so far below professional standards" that it failed to identify millions of dollars apparently stolen by school district personnel even after the firm was aware that fraud had occurred. The report found that the firm failed to meet nine mandatory professional standards for its Roslyn audit.

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