This site uses cookies to provide you with a more responsive and personalised service. By using this site you agree to our use of cookies. Please read our cookie notice for more information on the cookies we use and how to delete or block them.
The full functionality of our site is not supported on your browser version, or you may have 'compatibility mode' selected. Please turn off compatibility mode, upgrade your browser to at least Internet Explorer 9, or try using another browser such as Google Chrome or Mozilla Firefox.

FRC publishes audit quality inspection reports for the eight largest audit firms

  • FRC Image
  • Auditing Image

21 Jun 2018

The Financial Reporting Council (FRC) has published individual audit quality inspection reports for Deloitte LLP, Ernst & Young LLP, KPMG LLP, PricewaterhouseCoopers LLP, BDO LLP, Grant Thornton LLP, Mazars LLP and Moore Stephens LLP.

The FRC indicates that “the Big Four audit practices must act swiftly to reverse the decline in this year's audit inspection results if they are to achieve the targets for audit quality set by the Financial Reporting Council". It highlights that 73% (81% in 2016/17) of FTSE 350 audits reviewed in 2017/18 were categorised as requiring “no more than limited improvements”.  The FRC has set a target that “at least 90% of FTSE 350 audits reviewed should require no more than limited improvements by 2018/19”.

The reports set out the principal findings arising from the audit quality inspection work carried out by the FRC’s Audit Quality Review (AQR) team for 2017/18. 

The reports focus on the key findings from the reviews, why such findings are important and actions the individual firms are taking to address them in order to safeguard and enhance audit quality.  Key findings address both the FRC’s inspection of individual audits and also each firm’s policies and procedures to support and promote audit quality. 

The reports also identify some examples of good practice which contributed to audit quality at each firm. 

The press release and links to individual reports are available on the FRC website.

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.