U.S. accounting watchdog notes an increase in audit flaws

The Public Company Accounting Oversight Board (PCAOB) that regulates accounting practices in the US is not satisfied with the standard of audit work. Erica Williams the chair said in a statement this week that the public company audits the American accounting watchdog examined in 2022 contained an “absolutely unacceptable” number of problems.

The PCAOB is still analysing its annual inspection reports. However, a preliminary review has found that 40% of the audits they reviewed in 2022 had one or more deficiencies where the auditor did not obtain evidence to support her opinion.