Please ensure Javascript is enabled for purposes of website accessibility
October 1, 2023

How Did RSM US Fare On Its Latest Auditing Report Card From the PCAOB?

Not too long ago, RSM US had one of the worst PCAOB inspection reports we’ve ever seen. How bad was RSM’s audit quality? R-E-A-L bad.

Holy schnikes, that is some bad auditing!

The number in the red is … well … not a good number. That would be the number of audits the PCAOB inspected that had problems so big that the audit cops determined RSM had not obtained sufficient appropriate audit evidence to support its opinion on the issuer’s financial statements and/or internal control over financial reporting.

For those of you scoring at home, that’s a failure rate of 73%, the firm’s worst ever by far, and RSM had some doozies in the past when it was known as McGladrey.

At that point RSM couldn’t be much worse at auditing, so it wasn’t a complete shock that the firm’s audit deficiency rate got a lot better (29%) in its 2018 PCAOB inspection report.

So if 2017’s grade was an F- and 2018’s was, say, a C+/B-, how did RSM do on its 2019 auditing report card from the PCAOB? I’d give ’em a B+:

So in the span of three PCAOB inspection reports, RSM’s audit quality has improved from failing 73% of audits inspected to 29% of inspected audits having deficiencies to 20% in its 2019 report. High five, RSM!

Of the three ones with mistakes, two had deficiencies in both financial statement and ICFR audits, and one had mistakes in ICFR only.

Here are the areas where RSM auditors struggled the most in 2019, as well as 2018 and 2017:

Of the three wayward audits, two were for issuers in the financials industry, while the other one was an issuer from an unidentified industry.

If you see anything else of importance in RSM’s 2019 inspection report, let us know:

Related article:

RSM US’s 2018 PCAOB Inspection Report Is a Lot Less Deplorable Than the Last One

Latest Accounting Jobs--Apply Now:

Have something to add to this story? Give us a shout by email, Twitter, or text/call the tipline at 202-505-8885. As always, all tips are anonymous.


  1. Jason, you should have Adrienne write some articles about PCAOB inspection reports and let you write about interesting topics. I never said you were a bad writer or don’t have talent. But it seems like all your articles are about the same thing…BREAKING NEWS: Big 4 firms suck at auditing.

    Going concern used to be the pre-eminent accounting tabloid. Now it’s just a daily rundown of (1) which firm did a little less badly than all the other firms on their most recent PCAOB review, (2) which firm poached a big wig fat ass from another firm, and (3) what score did everyone get on their CPA exam?

    I miss the good ‘ole days of Going Concern when you used to write articles about interesting subjects like massive fraud by audit partners (the legendary Scott London) and staff accountants changing careers into more productive and inspiring lines of work, like taking it up the ass as a porn star (the legendary Veruca James).

    1. This is one of the most common criticisms of the PCAOB on this site, and after all this time, the very simple concept behind it continues to evade the young auditors of America. I don’t know why it is so difficult for people to understand: The purpose of a PCAOB review is not to determine if the clients financial statements were materially correct or not, it is to determine if the auditor followed the appropriate policies and procedures in completing their audit. Whether or not the client subsequently needed to restate their financial statements or not is completely, 100% irrelevant here. Why is this so hard to understand? Why?

  2. I don’t understand why anyone cares about RSM anyway. What a joke of a company. They will probably be out of business within 10 years.

Comments are closed.

Related articles

Prager Metis building in Decentraland

Prager Metis Just Got Thoroughly Boned By the SEC For Hundreds of Independence Violations

It’s not every day you get to witness a firm getting hit with HUNDREDS of independence violations in one fell swoop. Well today Prager Metis got the independence violation high score in an SEC complaint alleging a mess of them. From the SEC: The Securities and Exchange Commission today announced charges against accounting firm Prager […]

a hand holding out a magnifying glass

Longtime PCAOB Veteran and Skepticism Enthusiast George Botic to Sit on the Actual Board

“Like oxygen, audit quality may not be fully appreciated when it is present, but I think you can definitely tell when it’s missing.” That’s what George Botic said to attendees of the AICPA & CIMA Conference on Current SEC and PCAOB Developments in January, a get together sort of like Burning Man for auditors except […]