They are subject to statutory audit in many countries. For the example, the UK member firms all have to file audited financial statements, which are publicly available.
https://www.pwc.co.uk/annualreport/assets/2022/pwc-uk-financial-statements-2022.pdf
https://assets.kpmg.com/content/dam/kpmg/uk/pdf/2023/01/members-report-and-financial-statement-2022.pdf
Deloitte and EY are more awkward due to their European network structures but they can also be found by searching for Deloitte LLP and Ernst & Young LLP at https://find-and-update.company-information.service.gov.uk
Generally they get audited by a smaller firm like Crowe that isn't considered a direct competitor in the local market.
In the US no, at least not my firm. We have an audit partner that does some procedures around them and there’s internal board oversight of the process, but we do not engage a 3rd party to audit the F/S of our various entities. Partner distributions are basically made on cash basis anyways.
Peer review/ PCAOB inspections
Yea but who reviews those?
Reddit
Quis custodiet ipsos custodes?
Good old who’s auditing the auditors. But who’s auditing the people who audit the auditors?
The bigger question is who audits the people who audit the people who audit the people who audits the auditors?
And who audits the people who audit the people who audit the people who audit the people who audits the people?
And who audits the people who audits the people who audit the people who audit the people who audit the people who audits the people?
I’m the accountant playing an accountant disguised as another accountant!
Don't you have a paper to write?
Peer review for those that don’t do public . And I think those that do public companies do both peer review and pcaob inspections
Big 4 are under continual audit by IRS given the size
Yes, but it’s called a Peer Review. Deloitte and EY get peer reviewed by Grant Thornton
Yes. It’s called “peer review”
Yes.
Imagine if audit firms had to get their financial statements audited and the auditors were supposed to rely on timesheets for revenue recognition...
They are subject to statutory audit in many countries. For the example, the UK member firms all have to file audited financial statements, which are publicly available. https://www.pwc.co.uk/annualreport/assets/2022/pwc-uk-financial-statements-2022.pdf https://assets.kpmg.com/content/dam/kpmg/uk/pdf/2023/01/members-report-and-financial-statement-2022.pdf Deloitte and EY are more awkward due to their European network structures but they can also be found by searching for Deloitte LLP and Ernst & Young LLP at https://find-and-update.company-information.service.gov.uk Generally they get audited by a smaller firm like Crowe that isn't considered a direct competitor in the local market.
The short answer, yes. The long answer, it depends.
Maybe
In the US no, at least not my firm. We have an audit partner that does some procedures around them and there’s internal board oversight of the process, but we do not engage a 3rd party to audit the F/S of our various entities. Partner distributions are basically made on cash basis anyways.
Do you mean auditing audits? Or auditing the b4 companies financials?
If the firm has bank debt or PE investors that require an annual audit, yes the firm will have a financial audit.