The audit challenges have increased by 40%, according to the Public Company Accounting Oversight Board, which is entirely unacceptable.
The audit challenges have increased by 40%, according to the Public Company Accounting Oversight Board. (Photo: The Wall Street Journal)
PCAOB Audited 157 Audit Firms
According to a report released on Monday by the United States’ auditing watchdog, the Inspectors anticipate that around 40% of the audits they analyze in 2022 will contain at least one flaw, indicating that the organization delivering the audit failed to acquire adequate evidence to support its evaluation.
Last year, the Public Company Accounting Oversight Board (PCAOB) audited 157 audit firms. They discovered more auditing flaws in their inspections of accounting companies last year because the firms experienced staff churn and frequently utilized less experienced workers.
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157 audit firms and weighed portions of 710 audits in 2022
According to the Wall Street Journal story, the PCAOB not only inspects audit companies and sets audit standards, but it also punishments firms for violations that have no direct connection to examinations. The Securities and Exchange Commission administers the regulator, which said it checked out 157 audit firms and weighed portions of 710 audits in 2022, up from 141 companies and 690 audits the previous year.
In the opinion of specialists, the PCAOB could either boost enforcement, charge much greater penalties, or create other means to encourage conformity.
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