The annual benchmark report into audit quality reviewed 109 private sector audits at the largest firms in the UK, including PwC, Deloitte, KPMG, EY, and a number of mid-tier firms responsible for non-FTSE audits. Individual AQI reports on the Big Four and BDO were released at the same time.

A third (33%) of audits inspected fell below the highest standards set by the accounting regulator, defined as 1 and 2A – ‘Good’,  and ‘Limited improvements required’. Of those, 10% were described as requiring ‘significant improvements’,

This marked an improvement on audit quality since 2013/14 when 40% of audits did not meet the required standard. There has been significant improvement in this figure from 2011/12 when over half (54%) of audits inspected failed to meet the required standard.