The UK's Financial Reporting Council (FRC) has released its Annual Review of Audit Quality (ARAQ) 2026, offering a market-wide ***** sment of audit performance.
The review is aimed at enabling better decision-making at audit firms, audit committees and other users of audit, combining inspections of audit files with evaluations of companies' Systems of Quality Management (SoQM).
The FRC report said that SoQMs are the "foundation" of audit quality, supporting consistent audit delivery and enabling long-term improvements.
Audit quality is said to be improving overall, but the report underlines that performance remains uneven. A clear divide persists between the largest and smallest companies, particularly in the development of and investment in SoQMs.
The FRC stresses that reinforcing company-wide systems and capabilities is essential for sustained enhancements in audit quality.
#quality #Companies
The review is aimed at enabling better decision-making at audit firms, audit committees and other users of audit, combining inspections of audit files with evaluations of companies' Systems of Quality Management (SoQM).
The FRC report said that SoQMs are the "foundation" of audit quality, supporting consistent audit delivery and enabling long-term improvements.
Audit quality is said to be improving overall, but the report underlines that performance remains uneven. A clear divide persists between the largest and smallest companies, particularly in the development of and investment in SoQMs.
The FRC stresses that reinforcing company-wide systems and capabilities is essential for sustained enhancements in audit quality.
#quality #Companies
2 months ago
