The PCAOB significantly increased its enforcement activity in 2022, levying record-setting fines and generally signaling a tougher approach to the oversight of auditing firms, according to a new report.
The new report, released by Cornerstone Research, found the PCAOB disclosed 29 disciplinary actions involving the performance of an audit and/or a firm’s system of quality control, up 61% from 2021. The PCAOB disclosed nearly half those actions in the fourth quarter.
Monetary penalties in 2022 totaled close to $10.5 million, nearly 10 times more than in the previous year, with $8.8 million tied to actions in the fourth quarter. Of the PCAOB's 29 disclosed actions in 2022, there were 26 individual and 17 firm respondents. See the report.