The PCAOB’s “Staff Update on Inspection Activities” has again revealed a hard truth: despite technological advances and increased investment in audit innovation, fundamental audit quality issues remain stubbornly persistent.

In the latest report, the PCAOB inspected 171 registered firms and reviewed more than 800 issuer audits, identifying recurring issues in documentation, sampling, internal controls, and risk assessment these are areas that have appeared repeatedly in prior inspection cycles (PCAOB, 2024 Inspection Activities Spotlight).

Even as audit firms integrate data analytics, AI-driven tools, and workflow automation, these technologies have not yet delivered the step-change in quality that many predicted. The PCAOB’s findings make one point clear, audit quality ultimately depends on human judgment, experience, and the ability to challenge assumptions.

Why AI Isn’t the Cure for Audit Quality

The report highlights that deficiencies continue to cluster in human-driven areas, understanding internal controls, evaluating complex estimates, and documenting professional skepticism. These tasks depend on technical expertise and professional judgment, not automation.

AI can help auditors identify anomalies faster or extract data more efficiently, but it can’t interpret context or assess whether management’s assumptions make sense. It could be said that AI can only operate with information that it has access to, so if prior year quality was not at the required level, its highly unlikely that AI could improve on it.

The PCAOB has also emphasized that staffing pressures, including turnover, inexperienced teams, and capacity shortages  are some of the major drivers to many of the same inspection deficiencies seen year after year. In short: AI tools are powerful, but they can’t replace well-trained people.

The Case for Skilled Audit Support

To genuinely raise audit quality, firms must rethink capacity. The inspection data underscores that many firms , especially those outside the largest networks are stretched too thin to maintain rigorous review layers throughout every engagement.

This is where outsourced audit support becomes a strategic solution rather than a cost lever. Partnering with trained professionals, such as those at ResourcePlus, allows firms to tap into quality English speaking talent that can assist their teams.

Outsourcing is not about replacing auditors, it’s about giving them the capacity to apply their judgment where it matters most.

Building Audit Quality for the Next Inspection Cycle

The PCAOB’s findings signal a call to action, firms need more experienced people, not just more software. Quality improves when firms pair capable technology with skilled professionals who understand how to interpret, document, and challenge audit evidence.

AI will continue to evolve, but it won’t close the inspection gap on its own.

At ResourcePlus, we see that every day. Our teams help audit firms with capacity constraints allowing staff to be able to apply their mind to audit challenges.