An audit without a deadline

Implications: 1. The PCAOB is an entity that few people know much about

2. Although they impose strong standards on the accounting firms, their own processes seem to be needing improvement

3. Accounting firms don't have the luxury of finishing audits without a deadline. Why should the PCAOB not have one?



Analysis: Having practiced in public accounting for 35 years, I always had to work under deadlines and tight time frames. Now the PCAOB has taken up the role as auditors of the auditors; however, it appears their audits have no deadlines.

Who is the PCAOB? Where do they get their staff? What skills and experiences are required? What standards do they have for their own auditors? Why can't they complete their work in a timely fashion like the companies they are auditing?

These are all questions that few have many answers. One would hope that the PCAOB could think with the end in mind and set a deadline for getting these reports out in a timely fashion and then develop a process to make that happen. The PCAOB is now in its third year of auditing and it appears that they might learn from their clients on how to conduct their audits in a timely fashion and stick to the big rocks. Like most first time throughs, inefficiencies exist, but the PCAOB is now in their third year. Here we are in Nov 2006 and their work for 2005 is still not done! That is inexcusable as far as I and others in this article are concerned.

To get their work done in a timely fashion, the PCAOB needs to have the right number and quality of resources, good processes in place, and the right systems. Evidently one or all of these need improvement at the PCAOB. Perhaps somebody needs to audit the PCAOB!