Of the 100 audits inspected, 77% were categorised as good or requiring limited improvements compared to 75% in 2021/22.  The results indicate that over the last four years there has been a 10% increase in this measure of audit quality.

For the FTSE 100 audits inspected, none were identified as requiring significant improvements.  The percentage requiring no more than limited improvements was 81%, which is higher than the 77% across all audits but lower than the prior year (93%).  Of the 27 FTSE 250 audits reviewed, 82% achieved this standard compared to 85% in 2021/22.

Despite the improvements made the FRC highlights that it continues to identify inconsistency in application of methodology and guidance.  The report highlights that common inspection findings related to areas such as estimates, impairment and revenue with good practices identified for areas such as group audits, fraud risk and climate risk.

The press release and links to individual reports are available on the FRC website.  A podcast is also available on the FRC website here.