The outcome of the inspections was worse than last year, although the Financial Reporting Council (FRC) inspectors did not identify systemic reasons for the inspection results, although they flagged that EY’s own root cause analysis (RCA) had identified the need for more effective coaching from senior levels which had been an operationally challenging aspect of remote working.

The FRC reviewed 17 individual audits this year and assessed six (35%) as requiring improvements, while 11 (65%) required no more than limited improvements. Of the nine FTSE 350 audits reviewed, seven (78%) achieved this standard. Last year the FRC reviewed 19 audits but only found four as requiring improvements.