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Where da audit staff at?
Rye brook New York
Every single day

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This should not happen unless you are looking to be the next headline article (in a bad way)
i’ve been in situations where we have to report the results of our fieldwork to the audit committee as much as 3 weeks before issuing the report and praying no big issues popped up between one day and the other. but never met a partner that would issue a report before all testing was completed to such an extent that there was no doubt to our conclusions.
At EY yes, very common. Obviously clients don’t know but we do. Just document everything away.
Uh what office are you in bro
You mean it hasn’t been documented? There are cases where the support is received, the executives see that everything checks out, but the documentation is taken care of later. It should be rare that “testing" is not finished
I have never seen audit issued before testing completed. I have seen documentation finalized after issuance and I think that's quite common, but definitely no testing.
Your engagement partner is corrupt! 😁 that's all.
As others have said, cleaning up a work paper for documentation isn’t the same as not having completed testing. If you get caught issuing an opinion and you didn’t complete the testing, you’re going to have a bad time. A BDO team just got slammed by PCAOB because the snapshot of the file on the filing date had blank work papers that were completed in archive. Pretty sure the partners and senior manager lost their CPA licenses over it.
Pre SOX it was not uncommon, today at PwC no.
It is only about your team. I never see that.
I've never seen the that before. Is it common? Drafts yes. Opinions before getting the rep letter back, no
You are on the wrong teams or do not understand how your team is comfortable signing off. Never happened to me.
All depends on how risk-prone or risk-averse the partner is. If they're 99% sure nothing is going to pop up from the last few samples, they might go ahead and sign off. It's not right but it's to keep the client happy. Audit is a big game
It’s completely inappropriate and my guess is this is not common at EY and most national firms. Agree with earlier comments that this occurred in a pre-Sox world and only minor documentation updates are allowed post issuance (no testing). Reporting results to the audit committee early is fine because most partners provide caveats that teams are still wrapping up procedures and will update the committee should the preliminary conclusions change. Google BDO’s similar situation and the resulting fallout. Do not be a part of that game. Your career can be ruined by taking part.
I have seen it first hand at PwC on more than one engagement
To add, one of the engagements had ‘housekeeping language’ on approximately 50% of the work papers
Pretttttttty sure this would be a big no no
I’ve seen our auditors(PwC) trying to back fill their documentation and making requests for things they should’ve asked for the previous year. I’m not sure if it’s on purpose or pure incompetence