PCAOB Finds Slip-ups in E&Y Audits

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Issuer G: The auditor did not show whether it had done proper testing.
The firm needed to determine if how the issuer had reclassified the amounts of certain credit balances was appropriate.

Issuer H: The auditor failed to include an audit difference that was more than four times its posting threshold on its summary of audit differences.
Aggregate audit differences that were identified by the firm would have had an unfavorable effect on net income of 3.8 percent if recorded, but the figure would have been higher — 5.1 percent — had the firm not omitted this additional audit difference.