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PCAOB Chair Doty Warns Against Auditing Shortcuts

Publication: Accounting Today
Published: November 30, 2012
Author: Michael Cohn

Public Company Accounting Oversight Board chairman James Doty told an audience of auditors that the public is expecting more from the audit profession and warned firms against skimping on audit quality.

He warned that for some firms, the independent audit has become a commodity to be contained with other costs.

“In the United States, large audit firms’ revenues from consulting are growing rapidly, at some firms more than 15 percent a year,” he said during an audit conference at Baruch College’s Zicklin School of Business in New York on Thursday, co-sponsored by the NASBA Center for the Public Trust. “Audit fees have stagnated at, basically, the inflation rate. Thus, audit practices have shrunk in comparison to audit firms’ other client service lines. This, I think, threatens to weaken the strength of the audit practice in the firm overall.”

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PCAOB Chair Doty Warns Against Auditing Shortcuts