The Public Company Accounting Oversight Board
(PCAOB) has identified flaws in almost a third of the examined
audits carried out by Grant Thornton US in 2010.
The watchdog said deficiencies included
failures to identify or to address appropriately financial
statement misstatements or to perform certain audit
The inspection reviewed forty-one Grant
Thornton US audits from September 2010 until March 2011 in 21 of
its 51 US offices and listed failures to comply with the
Sarbanes-Oxley act in fifteen audits.
The PCAOB said in twelve cases failures were
significant and related to test internal controls, problems with
revenue recognition and impairments, and problems with fair value
measurements and allowances for loan losses.
In a response letter to the PCAOB, Grant
Thornton said it carefully considered each of the report findings
and took steps to fulfil its responsibilities.