In total, eight of BDO’s audits were reviewed between February 2018 and January 2019. The AQR found that:
- Seven were deemed good with limited improvements required (grades 1 and 2a)
- One required improvements (grade 2b)
- None required significant improvements (grade 3)
BDO’s results are top of the table in percentage terms for a second consecutive year.
Scott Knight, Head of Audit at BDO LLP, comments:
“For a second consecutive year, 88% of our firm’s audits reviewed in 2018/19 achieved the FRC’s top ranking for quality, with none requiring significant improvements. We’re proud of this record but aren’t complacent, and will continue to invest in our people and technology to achieve and maintain the highest industry-wide standards.
“Today’s results show there is no link between audit firm size and audit quality. The market is waking up to this, and we’re encouraged that audit committee members are increasingly recognising that more than just four firms can deliver world-class audits for large listed companies – but change is slow.
“The FRC’s headline findings remind us that the audit profession is in need of urgent reform. This cannot be kicked into the long grass if UK Plc wants to maintain its leading reputation. We must take fast action to create a resilient joined-up financial reporting system. The biggest threat of all is no change.”
The full report can be viewed on the FRC’s website here.
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