Sometimes this is a general fault, with potential repercussions on a wide range of companies controlled by a particular audit firm. In some cases, the PCAOB criticizes an examiner for not cooperating with an investigation or revising audit documents – and PCAOB`s disciplinary decisions do not explain the impact that the alleged misconduct could have on appropriate reviews. To date, China has not proposed solutions consistent with the core principles of the PCAOB, including the ability to conduct regular inspections and select specific commitments and violations to be reviewed, as well as access to permanent staff and information deemed relevant, said the chairman of the supervisory authority, William Duhnke, at the request of notice. In addition to disciplinary action against examiners, PCAOB reviews a sample of audits conducted by audit firms and publishes its results in periodic inspection reports. Reports have described more than 800 cases where the Us Big Four botched audits. However, inspection reports do not identify companies whose audits were reportedly botched. This undermines one of the few reforms implemented by the PCAOB to make auditors more accountable to the public. In 2017, the supervisory board has introduced an archist database on its website, which allows the public to take the name of a company and find the name of the audit firm`s partner who led the audit of the company. However, if you do not have the name of the company that is referenced in a forced action and the partner is not charged in the forced action, you cannot search for the name of the partner. In short, examiners are not omniscient.
What is more critical is that they often work for larger organizations that sell other professional services such as consulting, tax and information technology. Big Four`s auditors – Deloitte, PricewaterhouseCoopers, Ernst and Young and KPMG – all have significant non-audit activity, which is a growing source of growth and profits and a large part of revenue. But the Watchdog, known as the Public Company Accounting Oversight Board (PCAOB), has long complained about China`s inability to submit applications, meaning little information about the audits of Chinese companies trading on U.S. stock markets. The PCAOB was created by the Sarbanes-Oxley Act of 2002. Sarbanes-Oxley went past the Senate 99-0 and the House of Representatives with 423-3 in the wake of accounting scandals, including Enron and WorldCom, which led to billions of dollars in investor losses and the bankruptcy of a once revered accountant, Arthur Andersen LLP.