Audit Deficiencies in the PCAOB´s Inspections Reports: An Analysis in Brazilian and North American Audit Firms

The study analyzes the PCAOB´s inspections conducted in Brazilian and U.S.A auditing firms. With a number of implications over financial reporting as Sarbanes Oxley Act (SOX) of 2002 was created the PCAOB to conduct inspections of audit firms. For this, we developed the research applying content analysis in PCAOB inspections reports in the period 2010-2012. The inspection reports have audit disabilities, showing the nature and gravity. Data were analyzed and categorized based on the SOX (2002) and studies Roybarck (2006) and Church and Shefchik (2012). Categories of procedures and conducts inspections, common defects related to U.S. GAAP and audit deficiencies were used. The results indicate that the deficiences identified have been decreasing over time, compared with previous studies. The information presented in the reports indicate greater detail for american companies. The findings show that over time the audit firms are getting a better quality, with less disability. It is believed that this procedure performed by the PCAOB can contribute to audit quality, since audit firms mention that consider and review the audits and inspections of PCAOB auditing in their planning