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Knowing you can turn the department around, how great is that.
That’s part of the whole problem with this industry… sec and PCAOB need to start by prioritizing offshore labor % in audit reports and company’s filings, so investors know what’s really going on both by prepapers of company financials and the auditors. I’d bet we’ll soon reach 50% prep and 50% audit within 5 years.
Well said EY1.
Rising Star
The scary thing about BDO’s numbers is that the risk profile of their clients is not nearly as high as any of the B4.
KPMG’s historically high B4 deficiency rate is driven in part by our risk profile: we’re the largest banking and financial services auditor. It’s a lot easier to screw up an audit when you’re dealing with the complex estimates in sectors like that. That’s also why we’ve put so much work in recent years of updating our estimates testing methodology.
What in BDO’s portfolio is so risky that it’s causing a systemic issue where 86% of audits have problems.
KPMG 1, let me further correct it - BDO may not be PE owned, but they may as well be. They have nearly a $2B loan at 11.3% interest. And because there are no more partner owners, it's just ESOP employee owned. Which means Apollo has singularly the most at stake, and thus can lead the firm around by the nose to do what it wants to pay the $200M annual interest it owes... Notwithstanding principal.
BDO is a sinking ship.
In the case of EY they fired a lot of problematic clients to improve there numbers, expect BDO to do the same.
https://www.google.com/amp/s/www.livemint.com/companies/ey-sheds-us-audit-clients-in-response-to-shortfalls/amp-11724419032145.html
Their*
Should have read the report first! 😩
Yeah guess I’ll just hope for the best bc it’s a 20k raise 🤣