Crowe Falters on Controls, Revenue in Annual Audit Check

Evaluating financial reporting controls and testing to verify revenue tripped up Crowe LLP auditors, the Public Company Accounting Oversight Board said in the draft of its annual inspection report of the firm.

PCAOB inspections focus on the most high-risk audits and aren’t representative of a firm’s overall audit performance.

In a written response to the Aug. 7 inspection report, the firm said that it had added to, and better documented, its audit procedures.

The firm’s deficiencies, in addition to revenue audit challenges, related to evaluating impairment of long-lived assets and loans—including allowances for loan losses—the report said.

The deficiencies suggest ...