Adrian Johnson
TLDR:
Key Points:
- Big Four firms maintained audit quality in 2023
- Second-tier firms struggled to comply with US audit standards
According to the Public Company Accounting Oversight Board, major US accounting firms, including Deloitte, PwC, Ernst & Young, and KPMG, saw a slight drop in audit quality in 2023. However, they largely remained in compliance with regulatory standards. On the other hand, second-tier firms like BDO USA P.C. continued to struggle with audit rule violations, with 86% of their inspected audits showing flaws in compliance.
Full Article:
In 2023, major US accounting firms were able to maintain their audit quality, although there was a slight drop in compliance rates for firms like Deloitte and PwC. Ernst & Young and KPMG showed improvement in their regulatory compliance. The Public Company Accounting Oversight Board highlighted flaws in KPMG’s bank industry audits, indicating areas for improvement.
Second-tier firms, such as BDO USA P.C., faced challenges with complying with US audit standards. A significant 86% of audits inspected at BDO showed compliance issues. This disparity between the Big Four firms and second-tier firms underscores the importance of regulatory compliance in the auditing industry.
Overall, the audit quality of major accounting firms remained steady in 2023, with the Big Four firms leading in compliance with regulatory standards. However, there is a clear need for improvement among second-tier firms to align with industry standards and ensure accurate and reliable audits for clients.
