6) Sourc Irm Inspection Reports Why are they important: The PCAOB inspects the auditors of issuers. It selects some of a registered accounting firm's clients and examines how those audits were conducted. If the PCAOB determines that the audit was inadequate, it reports the deficiencies in the PCAOB firm inspection report. These deficiencies are referred to as audit failures. The inspections by the PCAOB of 2017 audits performed by the Big 4 in 2019 resulted in a 50% failure rate by KPMG, 27% by EY, 24% by PwC, and 20% by Deloitte. The largest 12 firms (at least with respect to SEC audits) are inspected annually, the remainder every three years. This also includes foreign affiliates. Database: PCAOB website (pcaobus.org) . Click on Oversight and Inspections Click on Firm Inspection Reports Search Ernst & Young Filter by Country United States Select the PDF of the inspection report dated September 12, 2019 HW Question: For Issuer E, paste the paragraphs related to intangible assets auditing procedures that EY failed to perform (two bullets).