UK Regulator Warns BDO, Forvis Mazars on Auditing Lapses (1)

The UK accounting regulator criticized BDO LLP and Forvis Mazars for failing to improve the quality of their auditing over the past year, saying it might restrict their operations if they don’t address the shortcomings.

While it classed 74% of all the audits inspected as “good or requiring limited improvements,” the gap in quality between the two companies and their four biggest peers — Deloitte LLP, Ernst & Young LLP, KPMG LLP and PricewaterhouseCoopers LLP — “has widened significantly,” the Financial Reporting Council said in its annual review published on Tuesday.

“Both firms are strategically important to the UK audit ...