In this post Sarbanes-Oxley era and with increased transparency, more and more information is out there. This is most obvious in the reports being issued by the Public Company Accounting Oversight Board. First, there are the public portions of the inspection reports of the accounting firms auditing public companies. They make for some very interesting reading, and not just those of the national firms that audit most of the public companies, but also the reports on the small firms. One report for a firm that audited three public companies found there had to be a reinstatement of a financial statement because of a GAAP departure identified by the PCOAB inspection team.
Critical inspection reports aren't the only PCAOB reports that auditors have to worry about. There are the general reports, such as the one recently issued on the initial implementation of Auditing Standard No. 2 that implements Sections 103 and 404 of Sarbanes-Oxley by establishing a process for auditing a public company's internal control over financial reporting in conjunction with an audit of financial statements.
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