Audit trust rising as CPIA index shows demand for clearer reports

Trust in the audit of the UK’s largest companies is rising, according to new research from the Centre for Public Interest Audit (CPIA), which also shows continued demand for clearer reporting and measured reform.

The Audit Trust Index 2025 draws on views from finance directors, equity investors and audit committee chairs. It indicates broad satisfaction with audit quality and a strengthening sense of value across the market. Stakeholders nonetheless want simpler explanations of what auditors tested, what they found and how those findings affect a company’s ability to keep operating over the next year.

The report highlights several trends shaping the UK audit landscape. Satisfaction with the audit process is described as universal, with all three stakeholder groups reporting that audits are being conducted effectively. Perceived value has strengthened, with satisfaction ranging from 89% among audit committee chairs to 100% among equity investors.

Respondents also express high confidence in auditors’ responses to fraud risk, with satisfaction scores of 97% or above across all groups. Independence and objectivity remain central concerns, with stakeholders stressing that auditors must be free from conflicts and apply a questioning mindset throughout.

The findings suggest growing confidence that auditors can identify signs of financial distress and assess a company’s ability to continue operating over the next year. However, users still want clearer explanations of how those assessments have been reached and why they matter.

CPIA’s research represents a UK-wide picture, covering views from England, Scotland, Wales and Northern Ireland. It focuses on audits of the country’s largest and most economically significant companies, often defined as a public interest entity. The overall direction, CPIA said, is positive, with the next challenge being to ensure audit findings are presented in a way that is as clear and decision-useful as possible.

Margaret Ford, CPIA chair, said: “The profession has made tangible progress. Stakeholders are telling us that audits are higher quality and more valuable. The task now is to embed that progress: maintain independence and scepticism and ensure reforms are targeted and proportionate so the market remains resilient and competitive.”

Dean Beale, CPIA executive director, said: “Trust is earned through consistency and clarity. The Audit Trust Index 2025 shows confidence rising, especially in the quality of the audit process and in how well auditors respond to fraud risk and signs of financial distress.”

“But people still want clearer reporting, set out in plain language, so they can see what the auditor did and what it means in practice.”

He added: “Proportionate reform is the best way to protect the gains we are seeing while keeping the market resilient for the UK’s largest, most economically important companies. CPIA will work with stakeholders and policymakers to turn these findings into practical next steps.”