KPMG, EY, Deloitte Affiliates Miss Mark in U.S. Audit Reviews

U.S. accounting regulators flagged audit violations for testing revenue and asset valuations in reviews of three Big Four international affiliates.

KPMG Germany, Ernst & Young Ireland, and Deloitte Denmark all had violations of U.S. rules noted in two out of three audits inspected as part of routine regulatory reviews.

• The Public Company Accounting Oversight Board inspects the work of international audit firms every three years, looking at a much smaller sample of audits compared with its reviews of the Big Four’s U.S.-based firms.
• Both KPMG Germany and EY Ireland oversee or contribute to the audits of a few ...