UK: POB concerned by number of audits by smaller firms requiring significant improvement

The Professional Oversight Board ("the Board"), part of the Financial Reporting Council, has published the results of its review of selected aspects of eleven audits conducted by smaller audit firms (those that audit up to ten listed or other major public interest entities within the POB's scope): see here (pdf).

Significant improvements were found necessary in six of the audits reviewed and concern was expressed with smaller firms acting as group auditors where they lacked the resources and expertise to undertake the audit to an acceptable standard. The Board found that the standard of reporting to audit committees required improvement in respect of five of the audits reviewed. In light of these and other findings, the Board suggests that consideration should be given to establishing specific competency requirements for auditors of listed and major public interest entities.