Is the PCAOB's 46% audit deficiency rate misleading investors? In my latest Earmark Podcast episode, PCAOB Board Member Christina Ho reveals why this headline number doesn't tell the full story about audit quality.
Christina points out that fewer than 5% of audits considered "deficient" actually result in incorrect opinions. She suggests that the PCAOB's risk-based selection approach might be misrepresenting these metrics. She also highlights the unfair regulatory pressures that smaller audit firms face compared to the Big Four.
In a candid moment, Christina recounted being publicly criticized by Senator Elizabeth Warren for challenging the mainstream views on audit quality.
Listen now: https://podcast.earmarkcpe.com/88
