Following audit inspections, relating principally to audits of companies’ December 2017 year-ends, the Financial Reporting Council said today: 

  • 75% of FTSE 350 audits assessed as good or requiring limited improvements. The FRC’s target is 90%. Overall there has been no improvement on last year
  • 25% of assessed audits are below an acceptable standard
  • Grant Thornton placed under increased scrutiny due to sustained poor results

FRC CEO Stephen Haddrill said: “At a time when the future of the audit sector is under the microscope, the latest audit quality results are not acceptable. Audit firms must identify the causes of their audit shortcomings and take rapid and appropriate action to improve quality. Our latest results suggest that they have failed to achieve this in recent years.”