The Public Company Accounting Oversight Board (PCAOB) announced that it has posted its inspection reports for all of 2023, including for the six U.S. Global Network Firms, which comprise the global networks of the Big Four, along with those of Grant Thornton and BDO. It also issued reports for eight nonaffiliate firms. The PCAOB reported that it issued these reports “months sooner than they have been released in recent years thanks to ongoing efforts to speed the release of reports.”

The PCAOB noted that the reports are accompanied by a new staff Spotlight publication, “which provides an overview of staff observations from the 2023 inspections.” PCAOB staff observed that while overall deficiency rates continued to increase in the aggregate, with 46 percent 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.”

“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 PCAOB released the following 2023 inspection reports:

U.S. Global Network Firms

BDO USA, P.C.

Deloitte & Touche LLP 

Ernst & Young LLP

Grant Thornton LLP

KPMG LLP

PricewaterhouseCoopers LLP

U.S. Nonaffiliate 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

The PCAOB noted that investors and other stakeholders can learn more about PCAOB inspections on the PCAOB’s Inspections page, and they can visit the Staff Publications page on the PCAOB website to find more perspective on the PCAOB’s activities and observations. 

Accounting Today reported on the deficiency rates of the individual firms and provided responses from firm spokespeople.