BDO response to the FRC’s Audit Quality Review 2022/23
BDO response to the FRC’s Audit Quality Review 2022/23
The Financial Reporting Council’s (FRC) Audit Quality Review (AQR) team has today (6 July 2023) published its annual quality inspection reports of the Tier One firms.
In total, 13 of BDO’s audits were inspected during the 2022/23 inspection cycle, which assessed year ends ranging from December 2020 to March 2022.
- Nine (69%) were assessed as good or only limited improvements required
- Two audits required improvements
- Two required significant improvements
Scott Knight, Head of Audit at BDO, said: “The AQR team’s inspection shows an improvement on our 2021/22 scores and the FRC has recognised the intensity of our commitment to strengthening our audit quality infrastructure. We are disappointed that there are recurring findings but we knew our investments and enhancements would take time to fully embed and impact our inspection results.
“Ensuring we consistently deliver high-quality audits to PIEs and across our entire portfolio is our top priority. We have made significant investments in audit quality, adding capacity and capability to the audit team, including the addition of 700 people and almost 40 new partners over the last two years.
“While progress has been made to date, we are not complacent and recognise there remains much to do. The entire audit practice and the firm’s leadership team are committed to our audit quality transformation programme, and we will continue to regard it as our highest priority.”
In addition, today’s inspection report also details the results of the ICAEW’s inspection of higher-risk, non-PIE audits. Thirteen of BDO’s audits were included by the Quality Assurance Department (QAD), with nearly 90% of those inspected assessed as good or generally acceptable.
ENDS
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BDO LLP operates in 17 offices across the UK, employing 7,500 people offering tax, audit and assurance, and a range of advisory services. BDO LLP is the UK member firm of the BDO international network.
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