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Accountancy Slice
North America
Audit quality among the largest U.S. accounting firms improved significantly in 2025, with the overall deficiency rate falling to 12.5%, about half the level recorded in 2024, according to the PCAOB. EY and Deloitte posted the strongest results, with deficiencies identified in just 5% of inspected audits, while PwC’s rate fell below 10%, and KPMG improved for a third consecutive year to 13%. EY attributed its gains partly to investments in technology, standardized audit methods, AI-backed tools, advanced analytics, and stronger governance. Mid-tier firms continued to lag, although they also improved, with deficiency rates of 34% at BDO and 33% at Grant Thornton. The stronger results come at a time when PCAOB Chair Demetrios Logothetis is planning to redesign the inspection process to place greater emphasis on firms’ internal quality controls, a proposal that investor advocates warn could reduce transparency by subjecting fewer individual audits to regulatory scrutiny.
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