Sunday, January 21, 2007

An Open Letter to KPMG, PricewaterhouseCoopers, Deloitte & Touche, Ernst & Young, and other Accounting Firms Subject to Inspections by the PCAOB

It is evident that the Public Company Accounting Oversight Board (PCAOB) is either in some cases unwilling or unable to release certain important information relating to its inspection reports of your audits. You are great firms staffed with good people who are much more moral than me.

Why not voluntarily release the nonpublic portions of such inspection reports? In addition, why not release how many actual inspections the PCAOB actually conducts of your firms on an annual basis? Why not provide the public with the percentage of how many of your audits result in deficiency citations by the PCAOB?

If I can publicly discuss my past deceitful sinful criminal actions in the starkest of terms surely you great people who are much better than me can voluntarily disclose such information about the effectiveness of your audits?

Other respectable people have called for the more transparency from the PCAOB and have apparently been ignored.

Do you have can we say more transparency than a convicted felon? It takes courage or maybe just some balls, too.

Respectfully,

Sam E. Antar (former Crazy Eddie CFO & convicted felon)

Special Compliments to the following Blogs covering this issue:

The CFO Blog by Alix Nyberg Stuart: How the PCAOB Shields the Big Four

The CFO Blog by Tim Reason: EY, KPMG, and the Meaning of Failure

The D & O Diary by Kevin LaCroix: The PCAOB's Audit Inspection Reports

Notions on High and Low Finance by Floyd Norris: Accounting Games

Note: I am sure countless others have covered this topic too.

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