A global survey of auditor oversight reveals that the number of issues with audit files is declining, but the frequency of findings is still too high.
The latest annual review by the International Forum of Independent Audit Regulators (IFIAR) reported that audit regulators’ reviews of firms affiliated with the large global auditors uncovered at least one finding in 33% of inspected audits.
This was down from 37% in last year’s survey, and 47% in the first review done in 2014.
IFIAR said that while it is “encouraged by the downward trend,” the frequency of audit issues remains high.
The group, which includes audit regulators in 55 jurisdictions around the world, including Canada, calls on audit firms to pursue continuous improvement in the quality of their work.
The survey looks at audits in key areas such as revenue recognition, accounting estimates, internal control testing and the adequacy of disclosure.