FRC 2022/23 audit inspections: Big Four steady; BDO and Mazars improve
The U.K. Financial Reporting Council (FRC) noted overall improvement in annual inspection and supervision results for the largest audit firms for a fourth consecutive year as part of its latest quality review.
The FRC announced Thursday the seven “Tier 1” firms—BDO, Deloitte, EY, Grant Thornton, KPMG, Mazars, and PwC—combined to have 77 percent of audits inspected be deemed good or require limited improvement, an increase from 67 percent in 2020. The overall number of audits reviewed requiring significant improvement was 3 percent, compared to 7 percent during the 2021/22 inspection cycle.
“It is encouraging to see the ongoing and consistent improvement in audit quality at the largest audit firms,” said FRC Deputy Chief Executive Sarah Rapson in a press release.