Oh lookie here, PCAOB inspection reports are out today. We shall gloss over Mantyla McReynolds, LLC and CF & Co., L.L.P, going straight to what we want.
Deloitte is first out of the gate for the 2013 inspection season, perhaps due to the fact that 52 audits were inspected and only a measly 15 deemed "failures" by the PCAOB. That's, like, really good, you guys.
You will fondly recall that Deloitte has been hard at work over the last few years trying to get its audits together, crawling up from an embarrassing 45 percent failure rate in 2010 to 42 percent in 2011 and 25 percent in 2012.
Deloitte, like most audit firms, is still having a little trouble with that pesky Auditing Standard No. 5, racking up three more dings in that category over last year. You will also notice the addition of Auditing Standard 14, which did not appear on Deloitte's 2012 inspection report.
Let's take a look:
The rest of the report is pretty much standard nit-picking on the part of the PCAOB. Board member Jay Hanson warned us all that 2013 reports would show audit firms are still struggling to please their PCAOB overlords when it comes to determing the effectiveness of the controls tested, so it's pretty amazing that Deloitte managed to pull off a 28.8% failure rate.*
Nice work, Big D!