The Financial Reporting Council's (FRC) latest review of audit quality at BDO is critical of the firm's 'tone from the top' and raises concerns about its failure to address weaknesses identified in a previous inspection.

The audit quality inspection (AQI) report states: 'We were disappointed to find that certain issues arising from our 2009 review had not been adequately addressed and that additional matters arose as a result of some of the changes made.

We expect the firm to monitor more closely the effectiveness of actions taken in response to our findings.'