An Analysis of the Inspection of Crowe Chizek and Company LLC Issued by the Public Company Accounting Oversight Board on November 30, 2006.
PCAOB Release No. 104-2006-201
1. The inspection team performed their investigation of the Crowe Chizek and Company LLC between September 2005 and November 2005.
2. The firm has 20 offices, the national office and 19 other physical locations.
3. The inspection team interviewed nine members of the leadership of the firm, but the report did not mention any other number of staff members.
4. The report doesn’t specify the exact number of issuer audit clients, but obviously there has to be more than 100 clients because the firm is audited every year.
5. The inspection team reviewed financial statements, SEC filings, they reviewed team work papers and interviewed engagement personnel. They also reviewed allowances for loan losses, revenues, estimated liabilities, and income taxes. Internal controls over financial reporting were also reviewed.
6. The inspection report only mentions that certain financial statement audits were selected, but fails to mention a specific number.
7. The firm was not given a chance to interfere with the selection process in any way, they neither limited nor interfered with the selection process.
8. There were eight mentioned audits for which the registered firm failed to obtain sufficient competent evidential matter to support its opinion on the issuers’ financial statements.
9. Failure to collect sufficient competent evidential matter is a violation of the 3rd standard of field work of the Generally Accepted Auditing Standards. However, one could also assume that this failure was due to inadequate technical training, poor und ...