4 ms·

Thankfully there are very strong incentives for audit companies not to f-up. They themselves are not audited and are not public. Their reputation means a lot to

Thankfully there are very strong incentives for audit companies not to f-up. They themselves are not audited and are not public. Their reputation means a lot to them. With this situation, there is a reasonable expectation for EY to lose clients. Partners will also face some consequence. Most likely they will be let go and removed from accreditation by CPA (in the US). There are several high profile cases where partners get sacked[0]. [0]: https://www.ft.com/content/5179fb94-fd6c-11e8-ac00-57a2a826423e https://www.ft.com/content/5179fb94-fd6c-11e8-ac00-57a2a8264...

purple-again 6y ago
Partly false. We were audited every year by one of our competitors. There is a strong likely hood that the reason she was told to stop finding problems is because the de minimus limit (the dollar figure at which we don't care) is truly, and I mean TRULY massive for the kind of companies that are audited by EY, PWC, KPMG, and Deloitte. I refuse to believe for one second that a serious issue was swept under the rug by a senior or manager. As for the guy sleeping in cupboards...the staff at those firms reguarly work 80 hour weeks (not the "I work 80 hour weeks counting all kinds of stupid things" but the "I was at the client site or in the home office for 80 hours this week". It was a very common occurence for hard working staff members to take naps at the client (most likely because last night was a 2am night). Promotions at these firms are often very competitive as the organization is an "Up or out" organization designed to chew up fresh college grads. The peer review is conducted by an independent evaluator, known as a peer reviewer. The AICPA oversees the program, and the review is administered by an entity approved by the AICPA to perform that role. 2. The peer review helps to monitor a CPA firm's accounting and auditing practice (practice monitoring).
- whatshisface 6y ago
  >There is a strong likely hood that the reason she was told to stop finding problems is because the de minimus limit (the dollar figure at which we don't care) is truly, and I mean TRULY massive for the kind of companies that are audited by EY, PWC, KPMG, and Deloitte. I refuse to believe for one second that a serious issue was swept under the rug by a senior or manager. That's a big claim for you to make given that you don't know the company, the size of their clients, or even whether or not anyone went to jail over the proceeding decades.

purple-again 6y ago

Partly false. We were audited every year by one of our competitors. There is a strong likely hood that the reason she was told to stop finding problems is because the de minimus limit (the dollar figure at which we don't care) is truly, and I mean TRULY massive for the kind of companies that are audited by EY, PWC, KPMG, and Deloitte. I refuse to believe for one second that a serious issue was swept under the rug by a senior or manager. As for the guy sleeping in cupboards...the staff at those firms reguarly work 80 hour weeks (not the "I work 80 hour weeks counting all kinds of stupid things" but the "I was at the client site or in the home office for 80 hours this week". It was a very common occurence for hard working staff members to take naps at the client (most likely because last night was a 2am night). Promotions at these firms are often very competitive as the organization is an "Up or out" organization designed to chew up fresh college grads. The peer review is conducted by an independent evaluator, known as a peer reviewer. The AICPA oversees the program, and the review is administered by an entity approved by the AICPA to perform that role. 2. The peer review helps to monitor a CPA firm's accounting and auditing practice (practice monitoring).

whatshisface 6y ago
>There is a strong likely hood that the reason she was told to stop finding problems is because the de minimus limit (the dollar figure at which we don't care) is truly, and I mean TRULY massive for the kind of companies that are audited by EY, PWC, KPMG, and Deloitte. I refuse to believe for one second that a serious issue was swept under the rug by a senior or manager. That's a big claim for you to make given that you don't know the company, the size of their clients, or even whether or not anyone went to jail over the proceeding decades.