Due to the enormous backlog of local audits, the regulator pulled back on the usual level of inspections and criticised the complexity of financial reporting rules as problem for major public sector bodies.

Only eight audits for the 2023/24 financial year were examined by FRC inspectors, with the focus on six NHS and two local government organisations, down from 20 in 2021/22 due to the immense local audit backlog. These inspected audits only related to two firms, EY and Grant Thornton.