PwC, Grant Thornton Affiliates Fall Short in U.S. Audit Reviews

Some overseas affiliates of PwC LLP and Grant Thornton LLP struggled with revenue recognition and inventory in their latest round of U.S. audit inspections.

Inspectors with the Public Company Accounting Oversight Board found deficiencies in all three of the 2019 audits it reviewed for both PwC Ireland and Grant Thornton Brazil, according to reports the board released Friday. The inspection results reflect work the firms performed in 2018.

• The board cited the firms for sample sizes that were too small and for not adequately testing controls, among other findings.
• PwC’s Irish affiliate, which audited or contributed to the audits ...