FRC issues thematic review on root cause analysis of audit inspection findings

  • FRC Image

16 Sep, 2016

The FRC has published a thematic review on the subject of root cause analysis performed by audit firms relating to audit inspection findings. This report is intended to promote continuous improvement in audit quality by providing insights into and aiding understanding of firms’ procedures, highlighting areas of good practice and providing recommendations based on these.

The FRC's review looked at the policies and procedures of the six largest UK audit firms. Overall, all are improving their processes for root cause analysis but some are more advance than others.

The FRC recommends that the firms should improve planning and training on the process, consider using individuals and techniques from outside the audit practice and adopt more consistent processes for investigating causes for internal and external inspections.

More details of the FRC's findings can be found in the full report, available from the FRC's website, along with a press release.

Related Topics

Correction list for hyphenation

These words serve as exceptions. Once entered, they are only hyphenated at the specified hyphenation points. Each word should be on a separate line.