On July 25, 2023, the Public Company Accounting Oversight Board (PCAOB) published its Staff Update and Preview of 2022 Inspection Observations. In 2022, the PCAOB inspected approximately 157 audit firms and reviewed portions of 710 public company audits in the United States and abroad. Through the inspections, the board identified potential areas of improvement for all firms as well as good practices that enhance audit quality. It also reviewed how auditors are responding to technology-related developments.
In this Flash Report, we highlight troubling trends in inspection results and shed light on the PCAOB’s current areas of inspection focus.