Accountants missed some big danger signs at AIG Group

PricewaterhouseCoopers: AIG board's own audit committee for 2 years said it couldn't vouch for the firm's accounting

For years, PricewaterhouseCoopers LLP (PWC) gave a clean bill of financial health to American International Group Inc., only to watch the insurance giant disclose a long list of accounting problems this spring.

But in checking for trouble, PWC might have asked the audit committee of AIG's board of directors, which is supposed to supervise the outside accountant's work. For two years, the committee said that it couldn't vouch for AIG's accounting.

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