Quality of audits a problem

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The Financial Reporting Council (FRC), the financial services watchdog in the UK, criticised the quality of three of eight audits they assessed at Grant Thornton’s offices.

The watchdog, which inspects GT’s audits on an annual basis, said: “We were disappointed by the number of audits…requiring significant improvements and that our further review of an audit assessed as requiring significant improvements during the last inspection again fell within this category.

“In respect of two of the three audits concerned, we requested that the firm carry out further audit work to determine whether the audit opinion it issued remains appropriate. In both cases the firm has confirmed that further work has been performed and that it considers that the audit reports remain appropriate.”

The FRC identified a number of improvements to be actioned by the firm to “enhance audit quality and safeguard auditor independence”.

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