Public Company Accounting Oversight Board Reports 93% of SPACs Audited by Non-Top 6 Firms

What's Happening?

The Public Company Accounting Oversight Board (PCAOB) has released data indicating that 93% of special purpose acquisition companies (SPACs) were audited by firms outside of the six largest global network firms at the time of their initial public offering (IPO). Between January 2015 and August 2025, a total of 1,291 SPACs were listed via IPO on U.S. exchanges. The data highlights that only 7% of these SPACs were audited by the top six firms, with two non-affiliated firms providing audits for more than 75% of SPACs at their IPO. The SPAC IPO activity saw a significant boom during the pandemic years of 2020 to 2021, with 87% of these IPOs based in the U.S. However, the number of SPAC IPOs decreased to 87 in 2022 and has remained relatively stable, with 84 SPACs so far in the current year.

Why It's Important?

This trend of SPACs being audited by non-top 6 firms reflects a shift in the auditing landscape, potentially indicating a diversification of audit service providers in the U.S. market. The reliance on smaller or non-affiliated firms for SPAC audits could suggest a growing trust in these firms' capabilities or a strategic move by SPACs to manage costs. This development may impact the competitive dynamics among auditing firms, challenging the dominance of the largest global networks. For investors and stakeholders, this shift could influence perceptions of audit quality and reliability, potentially affecting investment decisions and market confidence in SPACs.

What's Next?

As the SPAC market continues to evolve, it will be important to monitor whether this trend persists and how it affects the broader auditing industry. Regulatory bodies and market participants may scrutinize the quality and standards of audits conducted by non-top 6 firms, potentially leading to changes in regulatory oversight or industry practices. Additionally, the stability of SPAC IPO numbers suggests a maturing market, which could lead to more stringent evaluation criteria for audit firms and increased competition among them.