The Financial Reporting Council (‘FRC’) has published anonymised key findings and good practices reported by its Audit Quality Review (‘AQR’) team in relation to their 2020/21 audit quality inspections at the seven largest audit firms.
The FRC audit quality inspections support its objective of being an improvement regulator. The purpose of the documents is to share with auditors, audit committees, investors and other users of audited financial statements the nature of the key findings and good practices reported on the individual audits inspected (while observing the legal confidentiality requirements which apply to the reports concerned).
The FRC believes that publishing this material will facilitate informed dialogue with audit committee chairs and others regarding the FRC’s inspection approach, how they assess the significance of AQR findings and how they report on them, both privately and publicly.
You can read the two reports by following this
link.