AQR results 2021/22

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, 12 of BDO’s audits were reviewed during the 2021/22 inspection cycle, which assessed year ends ranging from June 2020 to March 2021.

• Seven were deemed good with limited improvements required (grades 1 and 2)
• Five required improvements or significant improvements (grades 3 and 4)

We remain determined to improve our results to meet the standard expected by the FRC. This is being achieved through the ongoing implementation of our Audit Quality Plan, which focusses on embedding quality into everything we do.

Scott Knight, head of audit at BDO, said: “Ensuring we consistently deliver high-quality audits is our top priority. We’re disappointed this year’s grades do not meet the standards expected by the regulator and our Leadership Team, and will continue to work hard to fully address the FRC’s findings.

“We have made significant investments in resourcing our audit practice over the last year, including the addition of 350 people to take our overall UK audit team headcount to 2,800. Further investments in audit quality initiatives include recent enhancements to our methodologies and technology. However, these actions take time to embed, and are therefore not reflected in this year’s reviews.

“Our entire audit practice remains focussed on being able to demonstrate sustained quality improvements over the coming years to restore our leading position in the AQR rankings.”