The quality of public company audit is improving—at least according to Public Company Accounting Oversight Board (PCAOB) inspection results.
After year-over-year increases in the audit regulator’s deficiency rates that culminated in Part I.A deficiency rate of 46% during the 2023 inspections cycle, the rate decreased to 39% in 2024, according to a new report that summarizes inspections performed last year.
Part I.A of PCAOB inspection reports identifies any deficiencies that the auditor had not obtained sufficient appropriate audit evidence to support its opinion on the company’s financial statements and internal control over financial reporting.
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