The PCAOB is fielding a rising number of accounting- and fraud-related tips
Audit firms that engage in shady accounting practices or financial fraud face a growing risk of being turned in - by their own staff accountants and by the internal auditors of their public company clients.
With financial reporting chicanery on the rise due to the shaky economy, enforcement officials at the Public Company Accounting Oversight Board are finding accountants and other "insiders" increasingly willing to blow the whistle on public accounting firms that cut auditing corners, violate accounting standards, or help to cook corporate books.
Last year the board fielded 179 tips and complaints alleging wrongdoing by audit firms, their employees and others - a record number, according to PCAOB Enforcement and Investigations Division director Claudius Modesti, who noted that the number of such allegations has been increasing steadily for the past few years.
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