PCAOB Release No. I05-2017-054, dated December 19, 2017, is a PCAOB Order formally sanctioning Grant Thornton and fining the firm $1.5 million in connection with its audit of The Bancorp, Inc.

Required: 

Locate the above-referenced PCAOB Order and summarize the salient points of the charges made against Grant Thornton. Evaluate this case in the form of accounting issues memorandum. In the Facts section of your memo, describe key issues raised by the PCAOB. Next, list then discuss (analyze) the following issues:

I. What is one rule or standard that the auditors (or firm) violated? What should the auditors have done differently?

2. What is another rule or standard that the auditors (or firm) violated? What should they have done differently?

In your analysis, present relevant excerpts from the applicable auditing rules and standards alongside your consideration of the case facts and details from the PCAOB Order.

Conclude with a recommendation for how these issues might be prevented going forward.

Answer rating: 100% (QA)

1The firm violated PCAOB quality control standards by assigning two partners from its Philadelphia o... View the full answer