The UK Financial Reporting Council (FRC) recently published its Annual Review of Audit Quality, covering inspection and supervision results for Tier 1 audit firms — including Deloitte, EY, KPMG, PwC, Forvis Mazars, and BDO. While some progress has been made among Big Four firms, the FRC found, the other Tier 1 firms continue to struggle with audit quality.
Over the past five years, audit quality has improved at the Big Four firms — Deloitte, EY, KPMG, and PwC — with 94%, 76%, 89%, and 76% of audits categorized as good or requiring limited improvements, respectively. Audit quality at FTSE 350 companies also increased, rising from 81% to 87% year on year. “The FRC welcomes the audit quality improvement at the largest four audit firms, particularly the improvement in FTSE 350 audits, which are some of the most complex and systematically important UK audits," said Sarah Rapson, the FRC's Executive Director of Supervision. "This progress demonstrates the considerable efforts to improve audit quality firms have made over a number of years.”
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