McGladrey & Pullen is the latest major audit firm to take a scolding from the Public Company Accounting Oversight Board. The audit regulator listed multiple problems with nearly half of the audits inspected, according to the firm’s latest inspection report.
McGladrey joins the company of Big 4 firms PwC, KPMG, Ernst & Young and Deloitte, as well as second tier firm BDO USA, in seeing a jump in the number of audits called out as failures by the PCAOB during the 2010 inspection cycle. Regulators found fault with 9 of the 19 McGladrey audits inspected during 2010, compared with only four audits in the year before. The latest round of inspection reports for major firms shows that audit failures increased by a range of 20 percent for Ernst & Young to nearly 50 percent for McGladrey over prior year failures.
