No EY audits needed significant improvement in this year’s FRC audit quality inspection report, however, the number of audits needing limited improvements has dropped to 76%, a 4% drop from the 2022/23 report. Since 2019/20 this figure has not surpassed 80%.

Only four audits required improvements, the same as last year, reflecting EY’s commitment to audit quality.

However, the FRC said ‘there continues to be recurring findings related to the audit of revenue, journals and deferred tax, and the firm should review the effectiveness of its actions in these areas’.

Three audits of companies in the FTSE 350 were identified as requiring improvements compared to one in the prior year.