BDO audits strongly criticized the UK organizer

Stay in view of the free updates

Simply subscribe to Accounting Myft Digest – it is delivered directly to your inbox.

The UK organizer strongly criticized BDO, saying that the work is “largely short”, as it concluded that the Intermediate Accounting Company was the worst performance among its peers during the annual inspections.

The results of the Financial Reports Council highlight the challenge BDO He faces because he is trying to break the suffocating The four major companies – Deloitte, EY, KPMG and PWC – In the listed companies ’audits while ensuring that their work is compatible with the requirements of the International Energy Agency.

FRC said only 50 percent of the BDO audits I have examined in its recent annual review require “no more than a limited improvement”, which was better than last year. Then, only 38 percent of BDO audits were ranked as satisfactory.

But the organizer said that the latest scrutiny in the BDO examined “is much lower than expectations,” adding: “BDO must reassess it urgently and high how to improve the quality of the audit.”

“We expect BDO not to be satisfied and make sure the change occurs at a pace.”

In the annual review of the organizer of the duties of the leading accounting companies, the organizer examined a total of 104 pieces of business carried out by Big Four Plus BDO and Forvis Mazars.

FRC tries to improve the quality of large British companies audit after accounting companies failed to raise red flags before prominent companies-such as Carillion and Baker El Patisserie Valerie.

BDO was the most successful in Medium -level accounting companies In winning more audit work from the so -called public interest entities, which include listed companies, banks and insurance companies. You are now reviewing the third largest number of these entities in all their peers.

“We have a clear plan to address the FRC results and include improvements by checking our scrutiny,” said BDO, head of BDO.

FRC promised reforms to help medium -level companies compete with Big Four, but the organizer’s efforts have been hindered by the government to drop some keys repairs It would shake the audit market.

Meanwhile, FRC said 90 percent of Forvis Mazars had not needed more than a “limited improvement”, compared to 44 percent last year.

FRC added that the best performance is “fan” but not yet “a direction”, after criticizing the Forvis Mazars audit last year.

“There is still a gap between the largest companies and other companies in the (public interest entity) market,” said Sarah Rabisoun, Executive Director of Supervision at FRC.

FRC said that the four major companies offered a “steady and consistent” improvement in the quality of audit during inspections.