The Public Company Accounting Oversight Board (PCAOB) announced on March 31, that audit quality at the six largest global auditing firms has shown marked improvement.

According to a report by Accounting Today, the PCAOB’s 2024 inspection data revealed a decrease in Part I.A deficiency rates across these firms, signaling progress after of pandemic-related challenges.

According to the PCAOB, the aggregate Part I.A deficiency rate dropped 39 percent in 2024 from 46 percent in 2023 for all inspected firms. For the Big Four—Deloitte, EY, KPMG, and PwC—that figure declined to 20 percent, down from 26 percent. This progress aligns with PCAOB Chair Erica Williams’ call for improved audit quality since taking office in 2022. 

Notably, BDO USA cut its deficiency rate to 60 percent from 86 percent, and Deloitte saw a drop from 21percent to 14 percent. EY and KPMG also reported meaningful reductions, while PwC’s deficiency rate held steady at 16 percent. Grant Thornton improved as well, lowering its rate to 48 percent from 54 percent.

Williams praised the improvements but urged firms to continue building momentum. The PCAOB attributed the gains to increased guidance, transparency and firm engagement, along with new tools and support for quality control remediation efforts.