About this episode
In our 400th episode, Blake and David dive into the controversial world of audit quality and Big Four accounting firms. They also discuss a listener's critical email about their audit coverage, explore recent audit failures and deficiencies, and debate the underlying incentives in the audit industry. The discussion turns to workplace culture issues at major firms and potential solutions to improve audit quality. Sponsors OnPay - http://accountingpodcast.promo/onpay Zoho - http://accountingpodcast.promo/zoho Makers Hub - http://accountingpodcast.promo/makershub Chapters (01:05) - Listener Email: Criticism of Audit Discussions (01:59) - Reading and Responding to Connor's Email (05:19) - Understanding Audit Deficiencies (07:46) - Audit Quality and Deficiency Rates (13:26) - EY's Audit Deficiency and Industry Comparison (15:28) - The Business Model of Big Four Firms (19:13) - Challenges in the Audit Profession (19:39) - Listener Feedback and Commentary (35:33) - Super Micro Accounting Scandal (43:53) - AI's Impact on Auditing (44:11) - The Tipping Point: Media Coverage and Reactions (44:40) - Audit Issues and Historical Context (46:10) - The Role of Consulting in Audit Firms (48:04) - Materiality and Audit Quality (51:32) - The Future of Auditing and AI (53:16) - EY's Secret Drinking Club Controversy (01:15:35) - Addressing the CPA Crisis (01:19:10) - Listener Mail and Final Thoughts Show Notes PCAOB Posts 2023 Annual Inspection Reports Alongside Staff Observations and New Charts To Boost Transparency https://pcaobus.org/news-events/news-releases/news-release-detail/pcaob-posts-2023-annual-inspection-reports-alongside-staff-observations-new-charts-to-boost-transparency Super Micro: Fresh Evidence Of Accounting Manipulation, Sibling Self-Dealing And Sanctions Evasion At This AI High Flyer https://hindenburgresearch.com/smci/ AI Spotted Super Micro Risks Two Years Before Filing Fiasco https://www.forbes.com/sites/noahbarsky/2024/08/30/ai-spotted-super-micro-risks-two-years-before-filing-fiasco/ EY's PR nightmare: A ‘secret drinking club’, misconduct allegations and resignations https://www.stuff.co.nz/nz-news/350292387/eys-pr-nightmare-secret-drinking-club-misconduct-allegations-and-resignations Super Micro shares fall 19% on filing delay, Hindenburg Research report https://www.cnbc.com/2024/08/28/super-micro-shares-fall-23percent-on-filing-delay-hindenburg-research-report.html Who Wants to See How Much Big 4 Revenue by Service Line Has Changed Since SOX? https://www.goingconcern.com/who-wants-to-see-how-much-big-4-revenue-by-service-line-has-changed-since-sox/ PCAOB releases two new, divergent inspection reports for Canadian accounting firms https://www.canadian-accountant.com/content/practice/pcaob-inspection-reports-deloitte-kreston-gta Rethinking Rankings: The Top 100 Firms — Adjusted https://www.vision.cpa/blog/Rethinking%20Rankings:%20Revenue%20Per%20Employee Need CPE? Get CPE for listening to podcasts with Earmark: https://earmarkcpe.com Subscribe to the Earmark Podcast: https://podcast.earmarkcpe.com Get in Touch Thanks for listening and the great reviews! We appreciate you! Follow and tweet @BlakeTOliver and @DavidLeary . Find us on Facebook and Instagram . If you like what you hear, please do us a favor and write a review on Apple Podcasts or Podchaser . Call us and leave a voicemail; maybe we'll play it on the show. DIAL (202) 695-1040. Sponsorships Are you interested in sponsoring the Cloud Accounting Podcast? For details, read the prospectus . Need Accounting Conference Info? Check out our new website - accountingconferences.com Limited edition shirts, stickers, and other necessities TeePublic Store: http://cloudacctpod.link/merch Subscribe Apple Podcasts: http://cloudacctpod.link/ApplePodcasts YouTube: https://www.youtube.com/@TheAccountingPodcast Spotify: http://cloudacctpod.link/Spotify Podchaser: http://cloudacctpod.link/podchaser Stitcher: http://cloudacctpod.link/Stitcher Overcast: http://cloudacctpod.link/Overcast Classifieds Client Hub - https://clienthub.app/ Forwardly - https://www.forwardly.com/ Want to get the word out about your newsletter, webinar, party, Facebook group, podcast, e-book, job posting, or that fancy Excel macro you just created? Let the listeners of The Accounting Podcast know by running a classified ad. Go here to create your classified ad: https://cloudacctpod.link/RunClassifiedAd Transcripts The full transcript for this episode is available by clicking on the Transcript tab at the top of this page