Audit Quality Deep-Dive: Revenue Testing
The Financial Reporting Council’s (FRC’s) Annual Audit Quality Inspection results for 2020/21 were released in July. The reviews cover the UK’s seven largest audit firms: The Big Four plus BDO, Grant Thornton and Mazars.
To the envy of all others, each of these seven firms has a team of highly experienced individuals, who are dedicated to improving audit quality in their firms. They are tasked with, among other things, consulting on technical areas, performing internal file reviews, advancing methodologies, facilitating technology improvements, developing guidance and templates, and delivering training.
But if the audit profession is to improve the quality of its work, which is the overall message in the FRC’s overview of the results, we must embrace the “Black Box Thinking” of the aviation industry. To understand the cause of the issues identified and support the profession in mitigating against these issues happening again.
Inflo Insight | Strengthen Your Advantage
Launched in 2021, Inflo Insight delivers thought leadership articles, research and expert opinions on accounting and audit issues. Our content examines the complexity and challenges audit firms are facing in an evolving business landscape. Our intention is to summarise and simplify key trends and takeaways that saves you time, builds knowledge and capability to adapt.
Inflo was founded by former Big Four auditors with the objective of making more progressive audit technologies and methodologies available to audit firms of all sizes. Our Digital Audit technology and approach improves the quality and relevance of the audit product for over 70% of the UK’s largest, non-Big Four firms. Our goal is to educate and support the profession to embrace and adapt to change and strengthen your advantage.
To find out more about the 2020/21 FRC audit quality inspections, subscribe to our mailing list. We will take a deep-dive into the common key findings and the actions firms can take to improve audit quality in the most challenging areas of the audit process.