PWC Accounting Firm Reaches $97M Settlement with Ohio in AIG Case

October 6, 2008

  • October 6, 2008 at 9:18 am
    curious george says:
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    didn’t the cpas audit morgtage orignation workpapers? wouldn’t they have discovered there was no verification of people’s incomes in many cases

  • October 6, 2008 at 12:45 pm
    Former auditor says:
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    First off, this suit has nothing to do with the current mortgage mess, it’s about finite reinsurance which was popular a decade ago – look at the dates in the article relevant to the suit.

    On to your question – I’m a former “Big 4” auditor and the answer is no, the public accounting firm of PWC would not have been reviewing mortgage loan origination paperwork. PWC is responsible for ensuring AIG’s financial statements that are issued to the public (i.e., investors) are materially correct. AIG’s own quality assurance or internal audit group would be responsible for ensuring the company’s internal mortgage underwriting standards were upheld.

  • October 6, 2008 at 12:48 pm
    curious george says:
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    we used to do test of transactions when I was in public accounting (e.g., selevt 25 or 60) then they went to “evalauating the integrity of management” and doing balance sheet comparions



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