External inspections

We are inspected by the Public Company Accounting Oversight Board (PCAOB) annually because we audit more than 100 US public companies. In those inspections, the PCAOB reviews portions of audit work we performed and aspects of our firm's quality control system. Because its inspections are designed to identify deficiencies in audit work, the PCAOB cautions that its inspection reports are not intended to serve as balanced report cards or an overall rating of the quality of the audits performed by a firm.

Part I of the PCAOB report

We are pleased with the improvement in our PCAOB inspection results. We believe they reflect the actions we have taken in recent years to enhance audit quality. But we also recognize that we have more work to do.

Part II of the PCAOB report and status of inspection reports

This nonpublic section of the PCAOB's inspection report provides observations on a firm's system of quality control. During 2016, the PCAOB informed us that we have addressed all of the matters in Part II of our 2013 inspection report to its satisfaction. As a result, all of the inspection reports prior to 2014 have been closed.

Peer review

We participate in the American Institute of Certified Public Accountants peer review program that requires a review every three years of our system of quality control for our private company audit practice. KPMG performed our latest review (reviewing primarily audits for the year ended 31 December 2015) and issued a report in December 2016 with a pass rating.