Quality control criticisms and the related evaluation of firm’s remedial actions to address those criticisms are central to the Board's efforts to drive improvement in audit quality.
Part II of PCAOB inspection reports include criticisms of, and potential defects in, the firm’s system of quality control, to the extent any are identified. When PCAOB inspection reports are first issued, the public will not see Part II of the report. If a firm does not address to the Board’s satisfaction the criticisms of, and potential defects in, the firm's system of quality control within 12 months after the issuance of our report, those criticisms will be made public.
Staff Guidance Concerning the Remediation Process
The PCAOB staff provided guidance on considerations that the inspections staff has identified as relevant to its recommendations to the Board concerning the sufficiency of firms' remediation efforts.
Firms That Failed to Address Quality Control Criticisms Satisfactorily
The PCAOB provides a list of firms that did not address certain quality control issues to the satisfaction of the Board within 12 months and the public version of each firm’s respective inspection report.