Via Going Concern, Let's Rag on the PCAOB Some, Shall We?
Fun with the PCAOB? We has it.
Maybe the problem here is not that the audits are not being performed correctly but that the PCAOB has no idea what it’s doing in the first place.
WebCPA:Many accounting firms are doing a good job of following new standards for conducting risk-based audits of internal controls, but others are not applying the standards properly, according to a new report by the Public Company Accounting Oversight Board.
The PCAOB examined portions of approximately 250 audits of internal control over financial reporting by the eight largest domestic registered firms in 2007 and 2008. The report assesses the first year of implementation of the risk-based Auditing Standard No. 5.
Listen, internal control isn’t like sex education, you can’t just say “listen, kids, be careful out there lest you end up with a funny rash on your cash flows” and leave a jar of condoms on the desk hoping management uses them. How does the PCAOB hope to be taken seriously when it slashes the minnows to death and leaves the sharks patrolling the waters for oblivious swimmers?
If you want to read the rest, you're just going to have to skeeze on over to Going Concern and check it out.