1. Don\'t you think that the bigger you are and the more audits that you do, the

Question

1. Don't you think that the bigger you are and the more audits that you do, the more likely it is that you are going to have more failures? In other words, if you conduct 10 audits, you may have only 1 audit deficiency. If you conduct 20,000 audits, you might have 200. Additionally, the bigger firms are going to conduct the more complex audits and have the larger clients.

2. Do you think that, perhaps, the PCAOB has a vested interested in criticizing the profession so harshly? Why?

3. How many executives have been successfully been convicted under SOX?

Explanation / Answer

1) No, it is not based on the no of audits you do. It is more based on how stringent your interial audit policies laid and also how good your accounting measures following as per the policies laid down by governing body.

The higher the audits you do the lesser the mistakes will happen as the most of the things will be interrelated if you do 10 audits some 20 items may be covered and if you do 25 audits may be 70 items would have been covered. So the more audits you conduct the lesser failures going to happen in future.

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