The standard of auditing at PwC has improved over the past year with 90% of FTSE 350 audits requiring no more than limited improvements, and no audits flagged as requiring significant improvement, a figure which has been maintained for the last three years, reveals the latest round of audit quality inspections (AQI) by the Financial Reporting Council. Of the total of 17 audits inspected, 82% met the FRC’s expectations that only limited improvements were required.

Concerns flagged by the audit inspectors related to the audit of cash and cash flow statements, revenue and profit margin recognition, and impairment.