Audit inspectors ‘pleased’ with smaller firms’ progress

AUDIT INSPECTORS have praised audits of firms with fewer than ten listed clients, but their annual report shows there is still some way to go.

The number of audits requiring significant improvement has fallen slightly, but the Audit Inspection Unit said the figure “continues to be on concern”.

Quality leapt in audits where a follow-up review was performed, and the Financial Reporting Council subsidiary said: “We are pleased that individual firms respond positively to matters we have raised”.

AIU inspectors examined nine audits related to listed, AIM and large private companies and covered selected aspects of the audit only, worked out on the basis of risk.

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