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PCAOB inspection results for 2024

The audit regulator’s 2024 inspections of the four largest U.S. firms: audits reviewed and the share where the PCAOB found the firm had not obtained enough evidence to support its opinion. Not a measure of all of a firm’s audits.

5 links, 1 backed by primary records

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Dates
Mar 2025

Connections 5

involved

  • Public Company Accounting Oversight Board inspector; it said inspectors usually cannot tell from a deficiency whether there is an undetected misstatement Primary record 12
  • Deloitte its U.S. firm: 9 of 63 audits reviewed (14%) Scholarship & press 2
  • Ernst & Young LLP 18 of 64 audits reviewed (28%) Scholarship & press 2
  • KPMG LLP 13 of 64 audits reviewed (20%) Scholarship & press 2
  • PwC its U.S. firm: 10 of 64 audits reviewed (16%) Scholarship & press 2
Timeline 1 date
  1. Mar 2025 PCAOB inspection results for 2024
Proof 2 sources
  1. Spotlight: Staff Update on 2024 Inspection Activities, Public Company Accounting Oversight Board, Mar 2025. Primary record
    In the typical case, information available to inspectors in relation to a firm’s deficient auditing is not sufficient for inspectors to form a judgment about whether there is an undetected material misstatement
    Such an inspection finding does not necessarily mean that the financial statements are materially misstated (or that ICFR is ineffective).
    the aggregate Part I.A deficiency rate decreased to 39% in 2024, down from 46% in 2023.
  2. PCAOB sees improvements in largest audit firms, Accounting Today, 31 Mar 2025. Scholarship & press
    For the Big Four U.S. firms (Deloitte, EY, KPMG and PwC), which as of Dec. 31, 2024, collectively audit about 80% of the market capitalization of public companies, the aggregate Part I.A deficiency rate decreased to 20% in 2024, down from 26% in 2023.
    nine of the 63 audits reviewed by the PCAOB in 2024 were included in Part I.A of the report due to the significance of the deficiencies identified, for a 14% Part I.A deficiency rate.
    At Ernst & Young LLP , 18 of the 64 audits reviewed by the PCAOB in 2024 were included in Part I.A of this report due to the significance of the deficiencies identified, a 28% Part I.A deficiency rate.
    For KPMG LLP , 13 of the 64 audits reviewed in 2024 were included in Part I.A of its report due to the significance of the deficiencies identified, a 20% Part I.A deficiency rate.
    For PricewaterhouseCoopers LLP , 10 of the 64 audits reviewed by the PCAOB in 2024 were included in Part I.A of the report due to the significance of the deficiencies identified, a 16% Part I.A deficiency rate.
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