PCAOB Lawsuit

There are a lot of many different companies in many different industries across the globe. One of those industries is the accounting industry. Which has many different careers and titles; there is tax accountants, forensic accountants, financial advisors, and auditors. This essay will discuss what the PCAOB does, some consequences if firms do not do their audit correctly, a recent lawsuit, and what they did in result after the lawsuit.
Like other accounting firms, the PCAOB has several duties. One of their main duties is to provide oversight to auditors of public companies; establishes auditing attestation, and qualify control standards for public company audits; and performs inspections of audit engagements as well as quality controls at audit firms performing those audits. The PCAOB reports to the Securities and Exchange Commission. (Auditing and Assurance Services) The PCAOB has an obligation to do these duties and …show more content…
The defendant was from the Ernst and Young Network, which is a public company that follows the PCAOB. Ernst and Young has headquarters are in London, United Kingdom. They were doing the audit report for Suherman and Surja. They did not follow the guidelines and when the auditor went through the appropriate evidence, the auditor did not follow proper procedure. They were guilty of audit Failure, Noncorporation, and many violations. (PCAOB Settlement)
This company was caught by the PCAOB and did not fix their mistakes the first time. So, after a while the PCAOB followed Suherman &Surja paper trail and figured it all out. If they do not not doing their audit report correctly, then they will end up like ENRON. They found out that the former engagement partner of the Indonesia Company was accountable for audit failure, and not cooperating with the board standards. Also, every employee and the director contributed to the audit