Accountancy Daily has consolidated FRC’s annual audit quality inspection cycle of the Big Four and mid tier firms, find the full details below
This year’s audit quality inspection (AQI) reports on the seven firms reviewed annually (Deloitte, EY, KPMG, PwC, BDO, Grant Thornton and Mazars) are based on fewer assessments than in previous years because of resource constraints. Across all firms, the FRC completed 130 audit inspections compared to 160 in 2018/19.
Overall, the FRC declared the results show an ‘unacceptable’ decline in audit quality, with several of the UK’s largest firms told to improve standards and expect greater scrutiny.
Find out how each firm was rated via the links below:
AQI 2020:
PwC - a third of audits needed improvements
Deloitte - best performer of Big Four
EY - ‘disappointed’ as results reveal lack of challenge
KPMG - needs faster progress on audit inconsistency
BDO - in dock for revenue audit failings
Grant Thornton - branded ‘unacceptable’ despite increased scrutiny
Mazars - improves on previous year at time of growth
Essential reading:
Overview- AQI 2020: FRC finds a third of audits need improvement
