U.K. Watchdog Calls for Better Use of Audit Quality Indicators

Accounting firms need to improve their tools for flagging poor audit practices, the U.K. accounting regulator said Wednesday following its first review of audit quality indicators.

The Financial Reporting Council found that the six biggest accounting firms didn’t all use the same quality indicators—making comparisons difficult—and tended to look at them only after an audit was finished, rather than monitoring them before and during the work. The council also found that few ...