Firms rarely greet the Financial Reporting Council’s (FRC) regulatory reports with much enthusiasm. When all is said and done, it is the FRC’s job to find fault and chivvy auditors along. Firms sometimes find it hard to hide their exasperation with what seems to them to be a one-sided view, not to mention their irritation at the somewhat patrician tone.

But the FRC’s December 2017 Audit Quality Thematic Review Materiality, which updates the 2013 review, seems to be something of an exception. Jack Kelly, audit partner at Deloitte says: ‘On the whole, this review is fair and balanced, and it is good to see the FRC recognising that firms have responded to the 2013 review – it is really very positive.’

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