FRC announces 2019/20 audit thematic reviews, priority sectors and audit areas of focus

Nov 16, 2018
The Financial Reporting Council (FRC) will, in 2019/20, supplement its routine AQR monitoring programme with two thematic reviews. These thematic reviews, which focus on aspects of audit practice across a number of firms to identify both scope for improvement and good practice, complement other AQR work, all with the over-riding objective of driving improvements in audit quality.

The thematic review topics are:
 
  • Audit Quality Indicators (AQIs): An assessment of the development and use of AQIs by UK audit firms. This review commenced during our 2018/19 inspection programme and will be delivered in 2019/20
  • The use of technology in audits. We reported on firms’ use of data analytics in January 2017. We will revisit the progress that the firms have made since, how the use of technology has widened beyond data analytics and the potential impact upon audit quality
The FRC will publish its 2018/19 thematic review of “The Auditors Work on Other Information in the Annual Report” later in 2018, followed by a report on Audit Firm Transparency Reporting in the first quarter of 2019.

Source: FRC