The phrase "a bad audit" is correct and usable in written English.
It can be used to describe an audit that has significant issues or shortcomings, often implying that the findings are unfavorable or that the process was poorly conducted.
Example: "The company faced serious consequences after receiving a bad audit, which revealed numerous compliance violations."
Alternatives: "a poor audit" or "an unfavorable audit".
The idea is to find problems while there is still time to fix them without getting a bad audit report.
In a Florida case, the lawyer for BDO International, which is the coordinating entity for BDO's international network of firms, persuaded a judge to rule that the international firm, which is based in the Netherlands, had no responsibility for a bad audit performed by BDO Seidman, the American affiliate.
While firms opposed to the rules repeated that there was no evidence any audits had been compromised, some proponents insisted that such evidence would be rare as no auditor was likely to write a memo saying he had approved a bad audit because he feared losing revenue for his firm.
It complains that partners would have to devote far more time to marketing than they do now, and it asserts that the risk of a bad audit is highest when an auditor is new and less likely to understand the business.
A bad audit could cause closure.
A single bad audit may bring in fees of less than $1 million — and liability of half a billion dollars.
However, a scathing draft report of the World Bank's internal watchdog said that due to inadequate oversight, bad audit practices, and a failure to follow its own rules, the Bank has allowed operational links to form between its programme and the Ethiopian government's controversial resettlement programme.
The appeals judges were not impressed, and this week ruled that a jury should consider whether BDO Seidman was an agent of the international firm, making the international firm liable for the bad audit.
Andersen had a run of bad audits before Enron, and this, together with its shredding of Enron-related documents, sets it somewhat apart from the others.
In other words, they do not know whether this is "a permanent change or a temporary reaction to an event that made the risk of bad auditing salient".The professionals may have a sharper eye, but successful whistle-blowing by employees fell after SOX, from 20.7% to 15.6% of cases.
PricewaterhouseCoopers has been fined recently in America for an independence violation, and KPMG in Ireland for bad auditing.
