The Public Company Accounting Oversight Board and Ernst & Young: An Investigation of Audit Quality Progress Through Inspection Report Deficiencies and Effective Communications

Abstract

My study examines the relationship between Public Company Accounting Oversight Board inspections and audit quality, and assesses whether audit inspections have improved audit quality. My results suggest that audit quality has not increased from inspections. Although, I cannot conclude that audit quality has decreased from inspections due to a number of limitations present in the data. My findings propose that audit quality requires continued improvement.