The Audit Quality Imperative
Audit quality is under the microscope like never before. The Financial Reporting Council (FRC) has been consistently clear: too many audits in the UK still fall short of the standards expected.
In its 2022/23 inspection cycle, the FRC found that 29% of inspected audits required either significant improvement or improvement, meaning nearly a third did not meet the bar for good quality [FRC Audit Quality Inspection Results 2023].
This matters. Audit quality is the foundation of public trust in financial reporting. When quality is inconsistent, confidence is weakened, not just in the firms themselves but in the capital markets that depend on robust assurance.
For partners leading firms outside the largest tier, the challenge is stark. Clients expect cost-effective service, regulators demand higher standards, and teams are under pressure to deliver more with less.
In this environment, quality can easily suffer from sheer strain on resources, not from lack of professionalism. It is here that technology can play a critical role. By bringing accuracy and consistency to repetitive processes, tools can free up auditors to focus on judgement and review.
But technology is only effective if it is genuinely accessible to firms across the market, not just those with the budget to build bespoke systems.
The business case for improving audit quality is not abstract. The FRC has pointed to direct consequences where standards fall short: regulatory action, reputational damage, and in some cases, loss of audit registrations.
Conversely, firms that deliver consistently high-quality audits protect their licence to operate, strengthen client trust, and attract talented auditors who want to work in environments where quality is non-negotiable.
Audit quality cannot be raised by regulators alone. It requires commitment across the profession and the adoption of tools and processes that embed consistency at every stage.
The message is clear: technology and collaboration can be powerful allies in restoring confidence in audit quality.
References:
FRC Audit Quality Inspection Results 2023: https://www.frc.org.uk/news/july-2023/audit-quality-inspection-results-2023
