PCAOB: Broker-dealer audits improve

Deficiency rates in audits of broker-dealers declined in 2025, according to inspections by the Public Company Accounting Oversight Board — particularly for those auditors that perform a large number of engagements.

The annual report from the PCAOB reviewed the results of its inspections of 61 firms and its review of 103 audits. Just under a third of the audits (31) were performed by firms that audited more than 100 broker-dealers (which the board calls “the largest firms”), and the rest by a range of other firms.

“Overall, in 2025 we observed a decrease in deficiency rates in examination, review, and audit engagements; however, the deficiency rates indicate opportunities for continued improvement by audit firms,” the report said.

The improvements were, however, concentrated largely among the largest firms.