The number of audit deficiencies tied to fair value measurements is still high, but declined for the second year in a row, according to a new analysis of Public Company Accounting Oversight Board inspection reports on auditing firms.

The analysis, released Wednesday by the valuation and litigation consultancy firm Acuitas Inc., found the percentage of audit deficiencies has fallen this year since reaching a peak in 2013. However, it’s still a high proportion, with deficiencies being found at nearly one-third, or 31.6 percent, of audits and other engagements examined.

Fair value measurement audit deficiencies are due more and more to a surge in business combination engagements. Fair value deficiencies related to business combinations rose in 2015 by more than 10 percentage points over 2014. In a Staff Inspection Brief in August, the PCAOB noted that it believes the strong pace of mergers and acquisitions increases the chances of material misstatements.

Acuitas found that failure to assess audit risks and to test internal controls and assumptions underlying prospective financial information are the root causes of most fair value measurement and impairment audit deficiencies.

“It’s apparent that the number of audit deficiencies remains high, owing to a surge in deal-making activity,” said Acuitas managing director Mark Zyla in a statement. “But we are seeing industry and accounting firm leaders committing to more quality control measures and ensuring due professional care, hence the decline.”

The PCAOB attributes the improvements to factors such as greater responsiveness from management and the increased use of quality control aids.

In June, the PCAOB released a proposed auditing standard, Auditing Accounting Estimates, Including Fair Value Measurements, indicating the PCAOB’s intention to encourage improvements in these areas.

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