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SubscribePCAOB Posts 2023 Annual Inspection Reports Alongside Staff Observations and New Charts To Boost Transparency
Staff Spotlight accompanying inspection reports notes signs of “leveling off” in audit deficiencies at the largest firms; New charts help stakeholders understand and compare inspection results
The Public Company Accounting Oversight Board (PCAOB) posted inspection reports for all 2023 annually inspected firms today, including the six U.S. Global Network Firms (GNF) – months sooner than reports have been released in recent years thanks to ongoing efforts to speed the release of reports.
The inspection reports are accompanied by a new staff Spotlight publication, which provides an overview of staff observations from the 2023 inspections. Staff observations include the fact that while overall deficiency rates continued to increase in the aggregate, with 46% of the engagements reviewed having at least one Part I.A deficiency, “we have begun to see the aggregate deficiency rate at the Big Four firms level off, as well as improvements in the deficiency rates at several of the other annually-inspected firms.” The Spotlight also explores how outliers influence the overall average, among other observations.
The PCAOB also published new charts on its website illustrating much of the data in the U.S. GNF and U.S. annual Non-Affiliate Firms (NAF) inspection reports for the first time as part of ongoing efforts to increase transparency in inspection data and make it easier for stakeholders to understand and compare inspection results both across firms and over time. The charts build on the May 2023 transparency improvements for inspection reports and the July 2023 release of new features allowing PCAOB website visitors to easily filter and compare thousands of audit firm inspection reports.
“These inspection results point to some small signs of movement in the right direction,” said PCAOB Chair Erica Y. Williams. “Still, overall deficiency rates are unacceptable, and firms must do better. Now is the time to double down on efforts to improve and deliver the audit quality investors deserve.”
“Making inspection information accessible and actionable for PCAOB stakeholders is a top priority and a means to improve audit quality,” said Christine Gunia, Director of the PCAOB’s Division of Registration and Inspections. “We will continue to search for new ways to bring our insights to investors, audit committees, and others.”
The following 2023 inspection reports were released today:
U.S. GNF Firms
- BDO USA, P.C.
- Deloitte & Touche LLP
- Ernst & Young LLP
- Grant Thornton LLP
- KPMG LLP
- PricewaterhouseCoopers LLP
U.S. NAF Firms
- Baker Tilly US, LLP
- B F Borgers CPA PC
- Cohen & Company, Ltd.
- Crowe LLP
- Marcum LLP
- Moss Adams LLP
- RSM US LLP
- WithumSmith+Brown, PC
Investors and other stakeholders can learn more about PCAOB inspections on the PCAOB’s Inspections page. Visit the Staff Publications page on the PCAOB website to find more perspective on the PCAOB’s activities and observations.
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About the PCAOB
The PCAOB is a nonprofit corporation established by Congress to oversee the audits of public companies in order to protect investors and further the public interest in the preparation of informative, accurate, and independent audit reports. The PCAOB also oversees the audits of brokers and dealers registered with the Securities and Exchange Commission, including compliance reports filed pursuant to federal securities laws.
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PCAOB Office of Communications and Engagement
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