UK Auditors Should Self-Report Quality Indicators, Watchdog Says

Big UK accounting firms should publish audit quality indicators to make clear whether they’re doing their jobs well, according to proposals released Wednesday by a national regulator.

In a consultation document, the Financial Reporting Council proposed having big-company auditors report their performance on 11 quality indicators, beginning in 2024. These would include the results of audit quality checks, the level of partner involvement in audits, and the perceived culture within an audit firm.

“Stakeholders have been clear there is a need for concise and comparable audit quality indicators to improve transparency and drive audit quality improvements,” the FRC’s executive director ...