UK accounting regulators said audits conducted by the Big Four accounting firms and smaller rivals did not live up to expectations and raised a thorny issue with investor-dependent financial statements.
The Financial Reporting Council, which oversees the UK division of the international audit firm, said that Deloitte LLP, Ernst & Young LLP, Grant Sonton UK LLP, and PricewaterhouseCoopers LLP improved performance year-on-year, but still fell short of expectations. Said it was about 80. The percentage of audits was evaluated as requiring only good or limited improvements.
“The number of audits we evaluated as needing improvement remains unacceptably high,” said the Financial Reporting Council. Regulators inspect individual audit samples each year to assess their quality. We focus on what are called high-risk audits, such as companies in financial difficulty or when auditors identify weaknesses in governance.
The Financial Reporting Council said KPMGLLP’s performance was unacceptable. Of the KPMG audits, only 59% were rated as good or only limited improvements were needed.
“It is unacceptable that KPMG’s overall test results have not improved and that KPMG’s banking audits have been found to need improvement for the third consecutive year,” the Financial Reporting Council said on Friday during the 12th period. Said in the report on the inspections done. Several months until the end of March.
Big Four Accounting Firms Can’t Meet UK Regulatory Expectations
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