AQR results 2020/21

AQR results 2020/21

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

In total, nine of BDO’s audits were reviewed during the 2020/21 inspection cycle, which assessed year ends from 31 August 2019 to 31 March 2020. The AQR found that:

•    Four were deemed good with limited improvements required (grades 1 and 2)
•    Four required improvements (grade 3)
•    One required significant improvements (grade 4)

During the course of the last year, we have taken significant steps to strengthen our Audit Quality Plan. However, today’s scores reinforce the need for us to remain committed to continuous improvements. 

Scott Knight, head of audit at BDO, said: “Quality is an absolute priority for our firm; evidenced by the fact we achieved some of highest publicly reported grades for audit quality in 2018 and 2019.
“We are therefore very disappointed with this year’s grades and are working hard to address the specific findings. In particular, we continue to invest in additional resources. Within the last year, we have increased our audit headcount by more than 250 people (14%), invested heavily in new partners, and commenced a significant investment programme in our central quality support team.

“Working closely with the FRC, we are confident these steps will result in sustained improvements over the coming years.”