According to a report from the ICAEW and FRC, one in ten UK audits were found to require significant improvement. That’s not just a technicality — it’s a risk to business owners, investors and stakeholders who rely on audit assurance to make informed decisions.
While the majority of audits passed the benchmark, the findings raise an important question: how do you know your audit firm is up to standard?
Why audit quality varies
The review found that while 67% of audits were broadly acceptable, 10% needed major improvement — and the gap between firms was stark. Larger firms, such as the Big Four, achieved quality on 90% of engagements, while smaller firms often struggled due to:
- Poor staff retention and recruitment
- Inexperienced staff handling complex work
- Underuse of IT and data analytics tools
What to look for when choosing an audit firm
Here are five things you should consider before engaging an audit partner:
1. Track record and reputation
Ask for examples. Look at recent audits. Review any available feedback or regulatory notes. You want a firm with proven consistency — not one that scrapes by.
2. Access to senior people
Audit quality often fails when critical decisions are pushed down to less experienced staff. Make sure you’ll have access to partners and senior audit professionals — especially when complex or judgemental areas arise.
3. Staff retention and culture
High turnover affects continuity, quality and trust. A stable audit team that knows your business can spot patterns and provide sharper insight year-on-year.
4. Technology and tools
A good audit firm leverages smart tools for data testing, risk analysis and documentation. If they’re still relying on spreadsheets alone, that’s a red flag.
5. Industry insight
You don’t want to explain your business model to your auditors every year. Choose a firm with sector knowledge, so they can challenge assumptions, not just check boxes.
The bottom line
Audit isn’t just a compliance exercise. It’s a critical lens on how your business is performing — and where it might be exposed.
Choosing the right firm isn’t about size — it’s about rigour, relevance and relationship. So when your next audit cycle comes around, ask the tough questions. Because if one in ten audits still fall short, you owe it to your business not to be one of them.
Source: Accountancy Age – One in ten audits flagged for major improvements
