On February 21, 2023, Cornerstone Research released its analysis of PCAOB enforcement activity in 2022. According to Cornerstone, the PCAOB disclosed 29 disciplinary actions involving the performance of an audit and/or a firm’s system of quality control, representing an increase of 61% from 2021 and the highest number of actions disclosed since 2017. Cornerstone’s analysis excluded PCAOB actions that it described as unrelated to the performance of an audit or a firm’s system of quality control, such as failure to register with the PCAOB or failure to timely disclose certain reportable events.

Among other observations, Cornerstone noted that more than 75% of the actions involving firm respondents included allegations regarding the firm’s system of quality control, an increase over 2020 and 2021. Monetary penalties totaled nearly $10.5 million, almost ten times the total from 2021. Over half of the actions, and nearly 90% of the monetary penalties imposed, involved non-U.S. respondents. This is the first year that there were more disclosed actions involving non-U.S. respondents than U.S. respondents.

The Cornerstone report and a press release describing it are attached.