Latest results from FRC audit inspections

The UK regulator has recently announced the results ¹ of its annual audit inspections. This year, the FRC’s audit inspection team found that only two thirds of the audits were of either a good standard or required only limited improvement, which implies failings in the remaining 33 per cent of cases. This is a deterioration from last year when 76 per cent of audits were deemed acceptable. Since the inspections covered 88 audits by the seven largest audit firms in the UK, this result is cause for concern and suggests there is still plenty of scope for further improvement.