“While it is encouraging to see that overall audit quality has gone up, these results demonstrate the challenges firms outside the Big Four have faced while building a presence in the PIE audit market.
“The FRC has set out plans to boost performance where it is lacking and the report acknowledges the important role smaller firms play in creating a resilient audit market, as well as the potential issues arising from de-risking audit portfolios.
“The FRC’s role in improving audit quality and competition must also not be overlooked, including through its scalebox initiative, and we urge it to renew efforts to support firms seeking to take on PIE audits.
“The regulator has also highlighted the Spring Report, which found that performing a good audit of challenging companies requires action by the company and the auditors. In our view it is essential that the new regulator ARGA is established and given wider powers to take effective enforcement action as needed.”
ENDS
Notes to editors:
Contact: ICAEW media office, ruth.pott-negrine@icaew.com or 07557 161315