« Paris In The Spring: Free Speech Limits on Saying “I Am Charlie Hebdo”? | Main | FIFA’s Own Goal – Can Sepp Blatter Trust His Team? »

March 11, 2015


Bob Hirth

Thanks Jim
Remember this too - the inspections cover a risk based sample about 60 of each firms US LLP US listed clients and then they take a subset of complex, subjective, difficult areas within each of those audits to look at.

So, the headlines of "47%, etc." - are very misleading.

(I am the chairman of COSO and also on the SAG at the PCAOB- the SAG deals with audit standards and not the inspection process- while documentation deficiencies can be important, they can be very subjective and hypothetical in terms of actual correctness)

Jim Peterson

Bob --

Thanks for your comment. This modest reaction - while extrapolations and extensions are of course to be done only with great care, in part for the reasons you cite, the approach of risk-based selection has a couple dimensions. Selection for complexity and difficulty might be expected to throw up performance challenges. On the other hand, recognition of those issues by the firms themselves ought to mean the deployment of best-quality talent, expertise and consultation. Put another way, might it not be expected that deficiency rates would be lower on the tougher jobs because better executed than those average or below? Further adult dialog on issues like this would seem to be very much called for.

Verify your Comment

Previewing your Comment

This is only a preview. Your comment has not yet been posted.

Your comment could not be posted. Error type:
Your comment has been saved. Comments are moderated and will not appear until approved by the author. Post another comment

The letters and numbers you entered did not match the image. Please try again.

As a final step before posting your comment, enter the letters and numbers you see in the image below. This prevents automated programs from posting comments.

Having trouble reading this image? View an alternate.


Post a comment

Comments are moderated, and will not appear until the author has approved them.

Your Information

(Name and email address are required. Email address will not be displayed with the comment.)


Never miss a post
Please enter all required fields
Correct invalid entries

Follow Me

  • © 2007-2024 James R Peterson Special thanks: Francine McKenna. Always with love: Kat and Julie. In memory: Bob White, Stuart Kadison