Review of audit firms’ quality monitoring to boost confidence in audit
News types: Publications
Published: 5 January 2016
01/16
Audit firms’ internal quality control procedures are designed to ensure that audit engagement teams consistently deliver high quality audits for the benefit of investors.
The Audit Quality Thematic Review: Firms’ audit quality monitoring (PDF), which has been published today by the Financial Reporting Council (FRC), considers the monitoring performed by nine audit firms over both the quality of completed audit engagements and the effectiveness of their overall quality control systems and seeks to share good practice and improve overall effectiveness.
Paul George, FRC’s Executive Director of Conduct, said: “We welcome audit firms’ commitment to audit quality and ensuring that their quality control systems for audit are effective. Given the importance of these control systems to deliver high quality audits we would expect firms to challenge individual audit engagement teams more rigorously and apply a consistently equivalent level of resources to monitoring the effectiveness of the firms’ overall controls.”
Notes to editors:
1. The FRC is responsible for promoting high quality corporate governance and reporting to foster investment. We set the UK Corporate Governance and Stewardship Codes as well as UK standards for accounting, auditing and actuarial work. We represent UK interests in international standard-setting. We also monitor and take action to promote the quality of corporate reporting and auditing. We operate independent disciplinary arrangements for accountants and actuaries; and oversee the regulatory activities of the accountancy and actuarial professional bodies.