• Register
Return to: Home > News > Mid Tier > Firms’ audit quality procedures not sufficiently robust, UK FRC says

Firms’ audit quality procedures not sufficiently robust, UK FRC says

Following its review of the six largest audit firms, The UK Financial Reporting Council (FRC) has said that firms’ audit quality procedures were not strong enough and has published good practices to help firms improve.

The FRC reviewed six of the largest audit firms in its report and 26 audits were selected from FTSE 100, FTSE 250 and other listed companies to observe the key aspects of the audit quality control systems used by firms to support their audit teams in delivering quality audits.

The FRC concluded that the firms’ audit quality procedures were not sufficiently robust as one third of the audits it reviewed require more than just limited improvements.

To help the firm improve, the FRC has published its Audit Quality Thematic Review, which highlights good practices, these include:

  • Having a dedicated board or committee to oversee all matter relating to audit quality
  • Initiatives to achieve consistent audit quality, identify areas for improvements and monitor the effectiveness of training in specific areas requiring improvement
  • Audits with a higher level of partner and director involvement had a greater likelihood of achieving a high quality outcome prior to issue of the audit report

The full report is accessible online

Top Content

    Nigeria: building compliance and engagement

    Opportunities created by regulatory and legislative changes in Nigeria are tempered by the fragile state of the economy, although practitioners are generally confident that conditions will improve over the next few years if appropriate steps are taken. Paul Golden reports.

    read more

    Ghana: a quest for consistency

    Ghana’s current economic profile would suggest a fertile landscape for purveyors of accounting services. But inconsistent approaches to compliance and application of standards – coupled with problems in the banking sector and consequent liquidity constraints – have created a challenging environment. Paul Golden writes.

    read more

    Drone technology: audit takes to the skies

    The movement towards a digitised era has already impacted the auditing profession in a number of ways, from blockchain to artificial intelligence. Now firms are taking to sky and using drone technology in their audits. Mishelle Thurai speaks to Big Four firms to find out more.

    read more

    SBC: a new alliance joins the market

    Jonathan Minter speaks to Paul Tutin, chair of founding firm Streets Chartered Accountants, about why the business and its European partners took the decision to launch their own association.

    read more
Privacy Policy

We have updated our privacy policy. In the latest update it explains what cookies are and how we use them on our site. To learn more about cookies and their benefits, please view our privacy policy. Please be aware that parts of this site will not function correctly if you disable cookies. By continuing to use this site, you consent to our use of cookies in accordance with our privacy policy unless you have disabled them.