Auditing the auditors: the monitoring report released
Latest audit quality monitoring reveals a quarter of files reviewed by QAD needed improvement. Its report identifies areas of concern and shares tools for improved practice.
There is good news and there is not so good news in the recently published Audit Monitoring Report 2020. Many of the 2019 audit files reviewed by ICAEW’s Quality Assurance Department (QAD) were classified (in descending order) as either satisfactory or acceptable (74%), while 18% required improvements and 8% required significant improvements.
Overall, the standard was on a par with findings for 2018 and 2017, across the four audit quality classifications that QAD uses. Those who want to better understand these classifications or attempt to discern any trends will need to dig a bit deeper. The latest audit monitoring report provides information that can enable this.