Audit committee chairs survey shows professional scepticism needs boosting
The lowest overall scores were for questions on professional scepticism and the auditor's response to regulatory oversight
FTSE 350 and smaller listed company audit committee chairs (ACCs) believe audit quality is getting better, but professional scepticism could do with improving.
That’s the mixed view to emerge from the second annual Audit Committee Chairs Survey for 2015, and the first to be overseen by the Financial Reporting Council (FRC).
While ACCs rated their auditors highly across all questions – the lowest overall scores for a second consecutive year – were for questions on professional scepticism and the auditor’s response to regulatory oversight.
There was evidence of improvement in all categories with the highest uplift in that of independence and objectivity.
The survey was sent to ACCs at all FTSE 350 and at some smaller listed companies to provide a suitable sized sample for the six largest audit firms. Response rates increased from 2014 with nearly half (200) of ACCs completing the survey.