The UK’s fifth largest audit firm, BDO, may have improved from last year’s AQI low of 38% but still has a long way to go as four out of the 14 reviewed audits needed ‘significant improvements’
The Financial Reporting Council (FRC) has published this year’s Audit Quality Inspection report on BDO, finding there is still ‘much to do’ as the firm’s results fell ‘significantly short of expectations’ as the regulator finds ‘recurring underlying issues’.
The regulator added: ‘BDO must urgently and robustly reassess how to improve its audit quality.’
In 2024/25 the FRC reviewed 14 of BDO’s audits with four (29%) needing significant improvements. The FRC said this was ‘unacceptably high within the sample of audits inspected’. In the 2023/24 AQI just two audits required significant improvements from 13 inspected audits.
BDO has said a shake up in the leadership team, including the managing partner, at the end of 2024 has led to a ‘strategic refresh’ where it ‘critically assessed the things holding it back from completing ‘high-quality audits’.
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