Rising Audit Violations ‘Unacceptable,’ US Regulator Warns

Forty percent of audits inspected by the US accounting oversight board in 2022 fell short of required standards that govern how accounting firms vet corporate income and balance sheets, compared to a third that failed the previous year.

Inspection violations among the largest global network firms also rose—30% of their audits reviewed by the Public Company Accounting Oversight Board in 2022 missed the mark, compared to 21% a year earlier, the board said in a report released late Monday.

“These findings are absolutely unacceptable, and audit firms must make changes to turn things around and live ...