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The common refrain: Rotating audit firms every few years would raise costs, reduce the familiarity of accountants with a company's books and impair the quality of audits.
WSJ: The Intelligent Investor: One Cure for Accounting Shenanigans
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Or to put it another way, if you have the faintest idea how to turn the Big Four into the Not-Quite-So-Big Eight, with consequential benefits to the cost and quality of audits, I know a watchdog desperate to hear from you.
BBC: Can the stranglehold of Big Four auditors be broken?
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So, what will happen to PwC as a result of these very dramatic criticisms of the quality of their audits, perhaps audits of some crucial financial services companies?
FORBES: PCAOB Criticizes Quality At PwC; Nothing Happens
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While audit firms cannot be immune to economic downturns, the PCAOB will evaluate whether such pressures result in fewer hours being devoted to audits, thereby impairing audit quality.
FORBES: By Any Means Possible: Auditors Try To Meet Standards By Faking It
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The breakdowns observed included (1) the lack of an audit trail in the COMPASS database and the ability for the arrestees to manipulate worksheet items in COMPASS, (2) the failure to perform periodic contractor cost audits (3) the quality of the Trenching Manual, (4) the lack of a formal employee rotation policy, and (5) the failure to coordinate follow through on reported allegations.
FORBES: New York's Electricity Crisis Started Before Sandy
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The company said its safety audits are normally done annually, and there is also a locally based quality-control team that visits weekly during production runs.
WSJ: Standards Clash in Bangladesh Factory Reforms