• Register
Return to: Home > News > Standards > Standards of audit quality for companies in UK is improving, FRC report suggests

Standards of audit quality for companies in UK is improving, FRC report suggests

Standards of audit quality for FTSE 350 companies in UK is improving, according to a second annual report, Developments in Audit published by the UK Financial Reporting Council (FRC).

The report is based on the FRC’s audit monitoring activities on the quality of individual audits of public interest entities (PIEs) and from the thematic reviews focusing on certain aspects of PIE audit firms as well as their audit practices. The report also draws on the information from the professional bodies on their inspection of non-PIE audits.

In a statement published by FRC, over £12.5 million of sanctions on auditors and audit firms have been issued by FRC in 2016/17.

The quality of the FTSE 350 audits inspected improved with 81% in 2016/17 classified as either good or with limited improvements required compared to 77% in the previous year and 68% four years ago.

Audits of FTSE 100 have also improved in the last year with 92% of them categorised as either good or require limited improvements compared to 65% in the previous year.

However, a large proportion of non-FTSE 350 audits required more than limited improvements.

FRC executive director for audit and actuarial regulation Melanie McLaren said: “In our monitoring of audit quality we have yet to see overwhelming evidence of improvement in all sections of the market or the consistency of performance we want between different firms. Firms are though investing in improvement measures, and those Audit Committees surveyed report that they are seeing evidence of good quality audit.”

The full report can be accessed here.

Top Content

    Blockchain and the Big Four: does it deserve all the hype?

    Although still in its infancy, blockchain is one of the most talked-about technologies of 2018. Will the blockchain bubble burst, or will it live up to its reputation as the ‘new internet’? Eleanor Jerome investigates

    read more

    Malaysia: Ready to show its strength

    Recent changes have enhanced the quality of audit reports in Malaysia, giving the profession a welcome opportunity to demonstrate its value to clients. Paul Golden reports

    read more

    China: Regulating the Chinese dragon

    Harsh regulatory actions and looming US trade wars have been dampening expectations in a Chinese market still full of potential, finds Jonathan Minter

    read more

    Indigenous Australians: New checks and balances

    With fewer than 40 known qualified Indigenous Australian accountants, Jonathan Minter speaks to Shelley Cable from PwC Australia about how increasing this number is an important part of improving the financial literacy of Indigenous communities

    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.