Testing, Controls Trip RSM in Annual Audit Inspection

Audit firm RSM US LLP struggled to test internal controls over financial reporting in its most recent annual regulatory inspection.

Inspectors with the Public Company Accounting Oversight Board noted dozens of rule violations among 11 out of 15 audit engagements they reviewed, according to the firm’s 2017 inspection report.

• Common violations of PCAOB audit standards included failure to test the design or operation of controls, failure to test significant assumptions or data management used to reach an accounting estimate, and failure to test the accuracy and completeness of data the client provided.
• Common violations related to the firm’s testing of ...