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The PCAOB may get tougher with its inspections in future years, with the board under a major shakeup after the Securities and Exchange Commission said earlier this year it would replace the board members, in part because of lax regulation ( see story ). At Ernst & Young, the PCAOB found that eight of the 52 audits reviewed in 2020 had deficiencies serious enough to spotlight in Part 1.A of the report . Those deficiencies mainly related to EY’s testing of controls over and/or substantive testing of revenue and related accounts and inventory. That too was an improvement over the 11 out of 60 audits that were significant enough to include in the 2019 report. “Our top priority continues to be serving the public interest by executing high-quality audits with integrity, independence and professional skepticism,” wrote EY U.S. chair and managing partner Kelly Grier and U.S. vice chair of assurance John King in response to the findings. “To this end, our commitment to continuous improvement in audit quality never wavers.” KPMG fared somewhat worse, with 14 of the 53 audits reviewed in 2020 considered to have significant enough deficiencies to include in Part 1.A of its report . The deficiencies primarily related to KPMG’s testing of controls over and/or substantive testing of revenue and related accounts, investment securities, goodwill and intangible assets, and the allowance for loan losses.https://www.accountingtoday.com/news/pcaob-releases-latest-inspection-reports-for-big-four-audit-firms
A third worker was killed andhis colleague injured when the elevator they were in plummeted through theshafts of a Bronx building where they were part of a renovation team. Commissioner La Rocca said she has mobilized teams of DOBenforcement inspectors across the five boroughs to perform safety sweeps of thecity’s larger and more complex construction sites, to ensure that they are safefor both workers and the public. While performing these zero tolerance sweeps, DOB inspectorswill issue enforcement actions if they observe any safety violations and willshut down sites if they find serious safety lapses. Inspectors and communityengagement teams will also be distributing “Worker Alert” safetyinformation at construction sites on the dangers of worker falls. During the sweep, DOBinspectors will be conducting site visits at thousands of construction worksites in neighborhoods across the city. Contractors who are found to be puttingtheir workers at risk by flouting safety regulations could face penalties of upto $25,000 for each construction safety violation. At each work site, the DOB will specifically be: Ensuring that permitted construction projects are in fullcompliance with their required site safety plans. Confirming that contractors and safety professionals areclosely adhering to New York City’s robust construction safety regulations. Checking that workers on site are properly using safetyharnesses and fall arrest systems where required. Distributing “Worker Alert” safety information onhow to prevent worker falls and sending direct mailers to all permit holdersperforming roof work. Last month, theDepartment announced that five new construction safety bills we support wereintroduced for consideration in the New York City Council.https://rew-online.com/la-rocca-orders-citywide-safety-sweep-after-three-construction-workers-die/