News November 2015 Audit Committee Chairs believe audit is improving

Audit Committee Chairs believe audit is improving

23 November 2015

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Audit Committee Chairs (ACCs) consider that audit quality has improved according to the Audit Committee Chairs Survey 2015 (PDF). This is the second year of the survey and the first to be overseen by the Financial Reporting Council (FRC).

ACCs scored their auditors highly across all questions. There was also evidence of improvement in all categories with the highest being that of independence and objectivity. The lowest overall scores, for a second year, were for questions on professional scepticism and the auditor’s response to regulatory oversight suggesting there is still some work for firms to do in this area.

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 of ACCs completing the survey. 

Notes to editors:

1.    The FRC is responsible for promoting high quality corporate governance and reporting to foster investment.  We set the UK Corporate Governance and Stewardship Codes as well as UK standards for accounting, auditing and actuarial work.  We represent UK interests in international standard-setting.  We also monitor and take action to promote the quality of corporate reporting and auditing.  We operate independent disciplinary arrangements for accountants and actuaries; and oversee the regulatory activities of the accountancy and actuarial professional bodies.

2. Read or download the FRC Audit Quality Inspections Annual Report (PDF). 

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