The Public Company Accounting Oversight Board (PCAOB) announced six new search filters on July 19. Firm inspection reports page Providing investors, audit committee members and other stakeholders with the ability to analyze and compare data from more than 3,700 audit reports.
“PCAOB inspection reports provide investors, audit committees and potential clients with valuable information that they can use to make informed decisions. By making it easier to access and compare that information, these new tools help users hold firms accountable for conducting high-quality audits, PCAOB Chair Erica Williams said in a press release.
One of the new online tools gives you the ability to sort inspection reports with Class IA defects by audit percentage. Part IA of the PCAOB’s inspection reports discussed “deficiencies, if any, that the PCAOB staff believes did not obtain sufficient audit evidence to support its opinion of the public company’s internal control over the public company’s financial statements and/or financial reporting at the time it issued its audit report.
In other words, Section IA shows how many errors and what types of errors a firm has committed during the audit of public companies. For example, let’s say you wanted to see which organizations had 70% or more defects in their audit report cards. In the “Part 1. A Defect Rate” box, you can enter the error rate percentage range (70 and 100 in this case) or use the slide tool to get to that range. As of today, there are 872 inspection reports of firms with audit deficiencies of 70% or worse.
It is one of 872 2017 PCAOB Inspection Report Of the five US accounting firms RSM US. During that inspection cycle, the PCAOB reviewed 15 public company audits conducted by RSM. The organization received a failing grade in 73% of those audits. The PCAOB provides a link to the inspection report, which shows that RSM made significant errors in 11 (73.3%) of the 15 audits examined.
The other five new diagnostic report filters are:
- Type of inspection: Users can check whether a firm’s inspection report falls into the “annual” or “triennial” inspection frequency category for the inspection year.
- General Issuer Audit Clients: Users can now sort inspection reports based on the number of audit clients the firms had as determined at the start of the inspection to get a better and faster understanding of the size of audit firms audited over a three-year period.
- Limited international network: Users can now filter search results to include only firms that are members of a specific global audit firm network.
- Year of Inspection: Users can filter inspection reports based on the year PCAOB inspectors completed the inspection, not just the year the report was published.
- Audits reviewed: Users can search for audit reports based on the number of audits the PCAOB has reviewed as part of its inspections.
Additionally, users can now download the entire dataset in three formats: CSV, XML, and JSON. These three formats enhance users’ ability to integrate PCAOB data into third-party applications for further analysis.
George R., director of the PCAOB’s Division of Registration and Inspections. “We are strongly committed to making more of this information more accessible and understandable to PCAOB stakeholders, and we are pleased that today’s website further enhances that commitment.”