The Public Company Accounting Oversight Board said in its latest report that it expects deficiency rates across firms to drop 7 percentage points.
Following focused efforts by the board to drive improvement, the latest report from the board’s inspection staff, its Spotlight publication, said it expected significant improvements in aggregate deficiency rates across all categories in 2024. The report summarizes the 2024 inspection results, along with individual inspection reports for the six U.S. Global Network Firms (GNFs) – BDO USA, P.C.; Deloitte & Touche LLP; Ernst & Young LLP; Grant Thornton LLP; KPMG LLP; and Pricewaterhouse Cooper LLP.
The report found that the aggregate rate for the six GNFs dropped eight percentage points, while the aggregate rate for the four largest firms dropped six percentage points. Additionally, the aggregate rate for the eight annually inspected non-affiliated U.S. firms is expected to hold steady, while the aggregate rates for GNF triennially inspected firms are expected to drop nine percentage points, while NAF triennially inspected firms are expected to drop six percentage points.
The improvement comes after focused efforts by the PCAOB that encouraged firms to address high deficiency rates that were the result of the pandemic, and to improve audit quality for investors
“We challenged the audit profession to do better for America’s investors, and these significant improvements demonstrate real progress in protecting investors,” PCAOB Chair Erica Y. Williams said. “Still, our work is far from over, and I urge the audit profession to build on this momentum.”