Grant Thornton sees an improvement from last year’s annual quality inspection report with the Financial Reporting Council (FRC) finding that out of seven assessments six, 86%, of audits reviewed in the current inspection cycle were assessed as good, and limited improvements required
In the last three years, Grant Thornton’s audit fees have reduced with a fee of £133m in 2018, dropping to £132m in 2019, and down slightly to £131m in 2020. The number of audits reviewed by the FRC was reduced from seven to six, to reflect the fall in the number of audits within the scope of the FRC.
The FRC report stated: ‘There has been a significant improvement in the number of audits requiring no more than limited improvements compared to the number of such audits identified in both our 2019 to 2020 and 2018 to 2019 public reports. While it is too soon to identify this improvement as a trend, it is nonetheless an encouraging signal.’
The FRC reported in previous years that Grant Thornton’s audit teams needed to improve their challenge of management and exercise greater scepticism particularly in areas of judgment on higher risk audits. In this year’s report the FRC stated that it saw an improvement in audit quality compared with prior years.
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