Audit committee chairs survey shows professional scepticism needs boosting

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.

 

Related Articles

FRC data on Big Four audits may highlight need for industry overhaul

Audit FRC data on Big Four audits may highlight need for industry overhaul

2w Lucy Skoulding, Reporter
FRC finds audit failures in UK pension scheme reporting

Audit FRC finds audit failures in UK pension scheme reporting

3w Lucy Skoulding, Reporter
FRC fines reach record high after 24% increase this year

Audit FRC fines reach record high after 24% increase this year

4w Alia Shoaib, Reporter
New FRC Corporate Governance Code focuses on culture and diversity

Audit New FRC Corporate Governance Code focuses on culture and diversity

1m Lucy Skoulding, Reporter
FRC to investigate KPMG’s Conviviality audit

Audit FRC to investigate KPMG’s Conviviality audit

2m Alia Shoaib, Reporter
PwC auditor spent just two hours on BHS audit, says chairman

Audit PwC auditor spent just two hours on BHS audit, says chairman

2m Alia Shoaib, Reporter
FRC reports an “unacceptable deterioration” in KPMG audit quality

Audit FRC reports an “unacceptable deterioration” in KPMG audit quality

2m Alia Shoaib, Reporter
PwC fined a record £10m over BHS audit

Audit PwC fined a record £10m over BHS audit

2m Alia Shoaib, Reporter