Whatever you think of audits and their quality, unless audit firms produce and report audit quality indicators, audit quality will not improve.
At the end of June 2022, the FRC issued a consultation on firm level audit quality indicators (AQIs).
On 18th August UKSA and ShareSoc submitted their response to this consultation.
Our main messages to the FRC are:
- We are supportive of the FRC issuing a guidance note to ensure firms describe and measure their AQIs in the same way
- We suggest AQIs are linked to and underpin the FRC’s definition of good quality audits
- We suggest audit firms have an AQI linked to the results of the Plain English Campaign’s reviews of a selection of their audit reports (at least 10%)
- We would like to see audit firms involve shareholders more in their audit planning stages.
