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BDO’s Audit Quality Review Results

10 July 2019

The Financial Reporting Council’s (FRC) Audit Quality Review (AQR) team has published its annual quality inspection reports of the Big Four, Grant Thornton, Mazars and BDO.

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.

ENDS

Note to editors

Accountancy and business advisory firm BDO LLP provides integrated advice and solutions to help businesses navigate a changing world.

Our clients are Britain’s economic engine – ambitious, entrepreneurially-spirited and high growth businesses that fuel the economy. 

We share our clients’ ambitions and their entrepreneurial mind-set. We have the right combination of global reach, integrity and expertise to help them succeed. 

BDO LLP

BDO LLP operates in 17 offices across the UK, employing nearly 5,000 people offering tax, audit and assurance, and a range of advisory services. BDO LLP has underlying revenues of £590m and is the UK member firm of the BDO International network.

BDO’s global network

The BDO global network provides business advisory services in 162 countries, with 80,000 people working out of 1,600 offices worldwide. It has revenues of $9bn. 

Contacts

Hannah Pini
PR Manager, BDO LLP
Tel: 020 7893 2857
Mob: 07970 025439
Email: [email protected]