EY UK has admitted it needs to improve it’s to audit quality, in its annual results.
The latest audit inspection results from the Financial Reporting Council (FRC) showed the number of EY audits which could not be improved declined from the previous year.
EY UK’s chairman Steve Varley said: “82% of FTSE 350 audits required ‘no more than limited improvements’ based on the FRC’s categories for audit quality. This was compared to 92% in 2017.”
Despite the outcome, Varley said the regulator had given encouragement by stating there were improvements in all of the areas it had identified as needing improvement in its prior year inspections.
Varley commented: "We are also positive but not complacent that we have had zero investigations and zero fines on audit work that has been completed in the last five years.”
The release of the UK Annual Results 2018 showed EY’s growth, despite an uncertain economic environment. Over the past three years EY has grown by 20%.
This past year EY grew by 2.7% in the UK to over £2.4bn ($3.05bn) revenue.
Advisory services posted a growth of 3.8% to £653m. Assurance growth fell by -1.7% to £677m, while audit grew by 4% to £458m.
Results showed financial services grew 7%. However, tax demonstrated the largest growth at 7.3% to £680m.
Finally results identified that transaction advisory services saw its fifth year of growth of 1.5% to £402m.
Varley included results on staff figures and mentioned that EY UK had hired 3,500 new recruits, 250 apprentices, and 71 equity partners.
Varley also said that 50% of the board at EY are women, but concluded that there is still more for the company to do.
By Mishelle Thurai