PCAOB reports significant improvement in US audit quality
October 28, 2026
The PCAOB has reported a substantial improvement in audit quality during 2025, with the aggregate deficiency rate across inspected accounting firms falling from 38% in 2024 to 23%.
The U.S. audit regulator inspected 143 accounting firms and reviewed portions of 780 public company audits, identifying improvements in quality control, accountability and technology adoption.
Among the Big Four accounting firms, deficiency rates declined from 20% to 8%, while the six major U.S. global network firms recorded a reduction from 26% to 13%.
Annually inspected U.S. non-affiliated firms also improved significantly, with deficiency rates dropping from 52% to 18%.
The PCAOB is now examining the factors driving these improvements while modernizing its inspection processes, including greater use of specialized inspection teams and targeted reviews of emerging audit risks, technology-based tools and financial reporting practices. Read more.
