BDO Faces Renewed UK Regulatory Pressure to Fix Audit Lapses

BDO’s UK arm fell “significantly short of expectations” in its annual audit review and will remain under the close watch of its regulator, the Financial Reporting Council said.

Half of the firm’s 14 audits selected for review were deemed “good or requiring limited improvements,” according to annual audit quality results the FRC released on Tuesday. The findings also covered the results of similar reviews for the five other largest UK auditors as well as an overview of inspections for smaller auditors.

BDO’s results mark an improvement over the firm’s previous results—just 38% of BDO’s selected audits earned a passing grade ...