Core Viewpoint - US accounting firms anticipate a reduction in audit inspections as the SEC plans to reform its oversight of the accounting industry, focusing more on internal quality and control systems rather than minor audit issues [1][4]. Group 1: Audit Inspections Overview - The PCAOB, under SEC oversight, conducts audit inspections and reviews numerous audits from large firms annually, with 63 or 64 audits reviewed last year compared to 53 or 54 two years prior [2]. - The PCAOB's deficiency rate, a measure of audit quality, increased sharply post-Covid but has decreased over the last two years, with firms arguing that earlier increases were due to inspectors emphasizing minor issues [3]. Group 2: Regulatory Changes and Perspectives - The PCAOB was established over 20 years ago to set audit standards and monitor compliance, with Congress mandating inspections but not specifying a minimum number [4]. - The acting chair of the PCAOB, George Botic, emphasized the need for careful updates to the inspection program and the importance of consulting stakeholders, warning against limiting the publication of inspection findings [5]. - Christina Ho, a PCAOB board member, indicated that the overall number of audit inspections is expected to decline under the SEC's revised approach [6].