An Akron-based accounting firm is under review for its audit work on First Brands. The small firm was hired to inspect inventory for the bankrupt manufacturer's off-balance sheet vehicles. This scrutiny follows the manufacturer's recent bankruptcy filing, raising questions about the due diligence performed before the collapse.

Auditing off-balance sheet items is a complex area where firms must verify assets not listed on standard financial statements. For a bankrupt company like First Brands, accurate inventory assessment is critical for creditors and bankruptcy proceedings. The firm's work could influence the distribution of remaining assets to stakeholders.

The outcome of this review may impact the accounting firm's reputation and future engagements. Regulators and the bankruptcy court will likely examine the audit's thoroughness. This case serves as a reminder of the high-stakes nature of corporate audits, especially during financial distress.