PwC raises audit quality through new programme

The FRC has concluded that PwC had “made improvements” to audit quality through its transformation programme in its report on the firm, as part of its annual inspection of the largest audit firms.

None of the audits inspected were found to require significant improvements and 83% required no more than limited improvements, compared with 80% in the previous year and 78% on average over the past five years.

The area that contributed most to the audits assessed as requiring improvements was the audit of revenue.

The FRC also said the firm has compared good practices in some audits to findings in the same areas in other audits as an addition to its root cause processes, which led to an increased focus on the root causes of both recurring findings and inconsistent audit quality.

However its noted a continued focus on reducing inconsistency is needed to further improve audit quality.

The FRC said that PwC “continued to complete its transformation programme and to take
actions to address findings arising from all external and internal reviews. We are
pleased that the firm has demonstrated continuous improvement to audit
quality and culture through the introduction of new initiatives in these areas.”

It comes as Mazars and BDO audits were deemed “unacceptable” by the council.