Audit reform

One in four audits need improvement, say ICAEW inspectors 

A quarter of audits are sub standard, while audit of going concern, revenue recognition and group audits remain significant problem areas, says an ICAEW audit monitoring report.

In the latest round of ICAEW audit reviews into audit practice at nearly 600 firms, a quarter of audits fell below expectations, with 16% of audits requiring some improvement, and 10% flagged as needing significant improvement, up from 8% in last year’s inspection cycle. The worst audits were described as inadequate by inspectors.