PCAOB slaps Deloitte on the hand, sort of
According to CFO.com, the most recent evaluation of Deloitte & Touche by the Public Company Accounting Oversight Board has them coming up a bit short. The PCAOB report said that four times in 2005, Deoitte failed to do enough work related to its audit clients’ fair value calculations. The auditors did not do enough testing to confirm management’s assertions related to those fair values.
This is the third time PCAOB has inspected Deloitte’s work, and the Board found “significant audit deficiencies” with eight of Deloitte’s clients. Some of the errors by the auditors may be material to the financial statements they audited.
Following the inspection by PCAOB, one of Deloitte’s clients has already issued a restatement related to the fair value of warrants issued to purchase common stock.
The eight audits with deficiencies represent an improvement for Deloitte. The inspection of its 2005 work uncovered audit deficiencies at 17 of Deloitte’s clients.
