Here’s something odd that was brought to our attention:
@going_concern @PCAOB Why has the PCAOB not posted an inspection report on their website since July? pic.twitter.com/nMZzKFEB0q
— Know Your Audience (@csilvey) December 1, 2017
Sure enough, if you cruise the PCAOB’s Firm Inspection Reports page, you’ll find that the last report was for Crowe Horwath’s 2016 inspection dated July 27th. This report was issued on September 12th.
Last month, the Board did issue its Staff Inspection Brief, which previews the 2016 inspection, and noted the most frequent areas of deficiency in audits. The overview of the brief states that Board inspectors have examined “over 780 issuer audits in 2016 and reviewed the system of quality control at more than 190 firms.”
The lack of inspection reports is unusual, as the Board issued reports dated in every month over the same period last year, in October and December in 2015, and in every month over the same period in 2014. This is the longest drought of inspection reports since the Board began issuing them in 2004.
Last we heard from the Board, it had just approved its 2018 budget and strategic plan, noting that it planned to reduce headcount.
A PCAOB spokeswoman declined to comment.
Update: An earlier version of this article stated that the Crowe Horwath report was issued on July 27th. The inspection is dated July 27th and was issued on September 12th.