KUALA LUMPUR 14 July - 29 out 88 Britain’s leading firms audits failed the quality test with seven of these required significant improvements, Reuters reported.
The country’s accounting watchdog said today, the result subsequently piling up the competence pressure of the firms.
The Financial Reporting Council (FRC) covered the “Big Four” auditors which are Deloitte, EY, KPMG and PwC as well as smaller firms, Grant Thornton, Mazars and BDO.
The FRC had set a raised of 100% audits inspected target from 90% previously with no more than limited improvements, but none passed.
FRC’s Executive Director of Supervision, David Rule said, they are concerned that firms are still not consistently achieving the necessary level of audit quality.
“While firms have made some improvements, and we have observed instances of good practice, it is clear that further progress is required,” said him as quoted in Reuters.
Out of the big four, the council saw KPMG marked the highest failures of the audit test, with seven out of 18.
It is followed by Grant Thornton’s four out of nine inspected.
Both of the above mentioned firms said, they were disappointed with the result and are taking actions to improve.
To note, auditors in the country are facing with an increasing scrutiny after the an accounting scandal at cafe chain Patisserie Valerie and high-profile corporate failures at builder Carillion, retailer BHS emerged.
Apart from that, Grant Thornton had to pay 3 million pounds ($3.8 million) of fine by this month for its ethics failures.
Deloitte meanwhile was fined at 15 million pounds for serious and serial failings. - DagangNews.com