23000: 2025 US Audit Quality Report

Ernst & Young LLP’s 2025 audit quality report Download the report Key metrics#1 auditorof companies on the Fortune 1000 list and Russell 3000 indexamong the Big 4 of companies that went public over the last 10 yearsin a recent US brand survey, with 88% of business leaders who responded saying they would consider EY as an auditorIn a recent survey of our people,99% believe they have a personal responsibility for delivering quality on their audits99% believe they have a personal responsibility for delivering quality on their audits98% say they understand that consistently performing quality audits serves the public interest98% say they understand that consistently performing quality audits serves the public interest95% of our audit and IT professionals are Lean Six Sigma white belt certified~65% of public company audit hours were incurred before our clients' balance sheet dateOur PCAOB inspection findings rate has improved dramatically21% in 2021, 46% in 2022, 37% in 2023, 28% in 2024, with an expected decline in 2025 of <10% based on preliminary resultsShaping the future with confidenceWith audit quality as our foundation, we are continuing to transform the audit, creating a better experience for our clients and people.We're delivering a streamlined methodology, investing in our people, and integrating AI and advanced analytics to address risks and deliver actionable insights.The EY audit delivers confidence in financial reporting and capital markets. Our methodology includes:

Modern approach

AI-powered platform

Streamlined process

Thriving professionals

Distinctive client experience

Global network

Digital audit

Multidisciplinary teams

Quality and integrity are at the foundation of everything we do.We define audit quality as

Being independent and objective, and acting with integrity and professional skepticism

Complying with professional standards, including exercising due professional care

Deploying multidisciplinary teams, with appropriate skills and experience

Identifying risks at the companies we audit and designing appropriate audit responses

Leveraging a continuous improvement mindset, coupled with effective supervision and review, to pace our work and to address issues early

Using innovative technology, including AI and data analytics, to deepen our understanding of a business and obtain better-quality audit evidence

Having honest, robust and timely communications with the audit committee and management

The result: Independent audit opinions that promote trust and confidence in the capital marketsModern approachWe are deploying next-generation technology, including AI, and processes that deliver a more intuitive user experience. Our auditors have been using EY Canvas, our globally deployed, cloud-based audit platform, for over a decade, and use guided workflows to perform robust risk assessments. These workflows are connected to our EY Helix data analyzers, which allow our people to ask better, more precise follow-up questions and provide our clients with valuable insights about their financial reporting processes.Download the reportAI-powered platformWe continue to invest in AI-powered tools that equip our teams to ask better questions and share sharper insights with our clients. We are developing AI solutions that incorporate agentic AI as well as broader AI-enabled workflows that provide real-time data analysis and generate comprehensive reports. We are well positioned to navigate the changing technological landscape and enhance audit quality by leveraging the latest technology and data analytic tools.Our state-of-the art EY Helix analytics and automation help our teams:

Easily understand data and end-to-end processes, and quickly identify common process vs. anomalies, enhancing our risk assessments

Automatically see key changes to people, process or technology used by our clients, further increasing audit quality

Answer more questions on their own, decreasing the time it takes our clients to support the audit

Quickly drill into data and processes, without limitations on size or complexity of data

Generate automated workpapers at scale across all areas of analysis and financial statement line items

Easily share sector and business insights for process improvements

Download the reportStreamlined processOur auditors approach each day with a continuous improvement mindset that we call The EY Way, leveraging cutting-edge technologies. We emphasize continuous improvement in our formal training and on-the-job coaching, including deepening our understanding of our clients' business environments and the sectors in which they operate.95% of our audit and IT professionals are Lean Six Sigma white belt certified~65% of our audit hours were completed before clients' balance sheet datesDownload the reportThriving professionalsWe are investing in our people through expanded career experiences designed to inspire, challenge and retain top talent. Through EY 360 Careers, our audit professionals spend their first years with EY on structured “expeditions,” exploring different CPA-track opportunities, building a broader skill set and deepening their business acumen. We are empowering our people to grow into well-rounded leaders and shape their professional future with confidence.In a recent survey of our people:81% say that overall their EY experience is exceptional, indicating a high level of satisfaction90% say the work they do allows them to continuously learn and develop new skillsDownload the reportDistinctive client experienceWe are harnessing the power of our people and technology to deliver timely and deeper sector insights that spark dynamic conversations. In fiscal 2025, we loaded approximately 480 billion lines of data into our EY General Ledger analyzer. Our audit teams can also leverage our team with special training in data engineering to customize this analyzer to address a company’s unique risk profile. The insights gleaned from this data can help US audit clients improve their financial reporting processes.#1 or #2 auditorin 13 of the 19 sectors represented on the US Fortune 1000Download the report