The PCAOB slams auditors for poor fraud detection.
Corporations can expect steep audit fees to follow.
In December 2005, the first time the Public Company Accounting Oversight
Board released a special report based on its audit inspections, the topic was
internal controls over financial reporting.
After that, all hell broke loose. When the Securities and Exchange Commission
learned about how inept and costly a job auditors were doing under AS2, the
PCAOB’s internal-controls standard, the SEC pushed the accounting board to
revise, and then replace, the rule.