An annual PCAOB report details an increase in the percentage of broker-dealer financial reports with audit deficiencies and offers advice for avoiding future occurrences.
According to the report, PCAOB staff identified at least one deficiency in 70% of the 103 audit engagements reviewed during 2023, an increase from 56% the previous year.
The four largest firms inspected had a 59% deficiency rate, while firms inspected for the first time had a 90% deficiency rate.
The most common deficiencies were related to evidence sufficiency, revenue, audit result evaluation, net capital and related party relationships. Read more.