EY gets a PIP

EY just PIP’d itself 😲

After the PCAOB found flaws in 46% of EY’s sampled audits, EY US Chair said the results were unacceptable.

😖 They essentially put themselves on a Performance Improvement Plan, which includes a restructuring of the audit practice to centralize decision-making and deploy new technology to try to improve quality.

At first I thought maybe the PCAOB was being nitpicky, but that error rate is apparently much worse compared to the other Big 4.

🤷‍♂️ I’m not sure what’s going on there, but at least they owned up to it. Let’s hope they figure it out, it’s not a good look.