Filed in archive Accounting by leon on April 16, 2008

Accounting firm Grant Thornton has been hauled over the coals by the Public Company Accounting Oversight Board for its slack audits.

With one client, the so-called experts at Grant Thornton failed to test the revenue and cost of revenue cycles and had failed to test certain value the company had placed on stock options it had issued actually measured up.

With another client, the PCAOB said the firm had failed to adequately test the valuation assertion regarding inventory.

And so the list goes.

Interestingly enough, the firm is quite conciliatory in its response.

And of course, the clients are not identified, leaving investors in the dark. Guess we can't have too much transparency, can we?

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Accountants and fraud - 13 November 2007
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Accountants lost with standards and XBRL - 18 May 2008

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Permalink: PCAOB punches Grant Thornton

Tags: Grant Thornton PCAOB 2007 grant+thornton conrad+black punches+grant

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Vote for PCAOB punches Grant Thornton:

Currently 9.50/10
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Rating: 9.50 out of 2 vote(s) cast.

Response from: Chandra U. Tiger (10/05/08 6:30am)

Take a good look at the collapse of the financial markets, the Omega 2008, with trillions in taxpayer dollars, and how the accounting profession failed to protect the public interest and restore public trust. The bailout is a reflection of the accountants lax standards maybe spending too much time on networking with clients and not protecting the public. The conflicted paycheck players, the alleged Gatekeepers, that enabled this crisis which resulted in the fall of true capitalism. Case in Point: "Privatizing Profits; Socializing Liabilities"...maybe the public wants some of those profits tucked away in the trust funds of your clients that made illicit gains that led to the great market collapse.

Response from:

The Public Company Accounting Oversight Board has pinged Grant Thornton for slack auditing.