Some of the problems the regulator sees with audits are a lack of auditorprofessional skepticism and an inappropriate focus on building and maintaining the client relationship with the company management rather than on performing a public duty for shareholders.
The independent external auditor is a licensed professional who works for a public accounting firm and performs an audit of the financial statements of a company, government, individual, or any other legal entity or organization.
Last week the FDIC filed suit against Colonial Bank auditor PwC, and internal audit co-source vendor Crowe Horwath, for professional malpractice and breach of contract.