The quality of listed audit has improved slightly in this year’s audit quality review results, but the regulator was harsh in its criticism of the quality of audit work conducted by mid tier firms BDO and Mazars. At the same time 18% of inspected audits need significant or general improvement.

While there have been significant improvements in audit quality at the Big Four firms, the inspection results at Mazars and BDO were ‘unacceptable’, said the Financial Reporting Council (FRC), which reviewed 96 audits across the market, compared with 103 last year.

Mid tier firms BDO and Mazars’ results ‘remain concerning and specific supervisory plans have been developed to address this’, the FRC inspectors said.

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