FRC publishes annual audit quality inspection result 2020/21

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28 Jul, 2021

The Financial Reporting Council (FRC) has published individual audit quality inspection reports for the major audit firms.

The results highlight that 29% of 103 audits reviewed required “improvements” or “significant improvements”. 71% of audits were assessed to be of a “good standard” or requiring only “limited improvement”.

The FRC acknowledged that quality across the individual firms was more mixed than in 2019/20 and has published measures that individual firms will be required to implement in response to individual inspection findings.

The FRC also flagged recurring findings in relation to the audit of revenue, impairment of assets and group audit oversight. There were mixed findings in relation to the effective challenge of management of audited entities, with same examples of good practice but not on a consistent basis.

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

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