The audit inspection results have not improved since last year and were described as ‘unacceptable’ with 38% (three audits) requiring significant improvements and 50% across the two lowest categories, out of the eight audits inspected in detail.

The audit regulator said that ‘the current results are concerning and urgent additional action by the firm, is clearly still required to produce consistent, high quality audits’.

Any inspection cycle with audits requiring more than limited improvements is a cause for concern and indicates the need for a firm to take action to achieve the necessary improvements.