Weak Oversight Plagues Audits of Billions in Private Assets

Having seen the way that companies with debt are calculating EBITDA and cash flow this does not come as a surprise....Aivars Lode

"Research by the government and data from the auditing industry trade group show significant flaws in audits of private organizations, particularly those done by smaller firms.

This self-policing system covers the vast majority of U.S. audits, including more than 5 million private companies, some with billions in revenue, Labor Department data show. It also affects tens of thousands of pension funds, endowments, local governments, charities and billions in government grants, according to the auditing industry trade group. Investors in these companies, pensioners, donors to charities and local taxpayers are among those who could lose if auditors fail to detect problems."
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By Jean Eaglesham and Coulter Jones from Wall Street Journal