Starling Insights Editorial Board
According to a recent Cornerstone Research report, the Public Company Accounting Oversight Board's (PCAOB) enforcement activity increased notably in 2022. In total, the Board disclosed 29 disciplinary actions relating to audit quality and performance, up 61% from 2021 and the most since 2017.
Monetary penalties in 2022 totaled close to $10.5 million, almost ten times more than in the previous year. "The record penalties were consistent with statements made by Chair Erica Williams that the PCAOB would not be limited to the levels of penalties in past years," said Alison Forman, a Cornerstone Research principal and report coauthor. "Penalties totaling $7.9 million were imposed on the 10 actions disclosed in December alone."
The report also noted the percentage of actions involving non-US respondents, which — at 52% — was double the 2017–2021 average.
Starling will soon publish "Renal Failure: A Crisis in Audit Culture?", a Deeper Dive Supplement to our 2022 Compendium, which will discuss, among other things, the PCAOB's efforts to reform audit quality and governance in the US. Join Starling Insights to be alerted when it is released!
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