Recent findings show one in ten audits require significant improvements but choosing the right auditor makes all the difference.
The spotlight is firmly on audit quality following the Institute of Chartered Accountants in England and Wales’ (ICAEW) latest review, which found that whilst two-thirds of audits meet acceptable standards, one in ten still require “significant improvements”.
For businesses navigating an increasingly complex financial landscape, these findings underscore a crucial question: how do you ensure your audit delivers real value rather than simply ticking regulatory boxes?
The ICAEW’s review of 790 audits across dozens of accountancy firms revealed that 67% were generally acceptable – down from 71% in 2023. More concerning was the consistent 10% falling well below expectations, highlighting ongoing quality issues.
The ICAEW identified several factors behind substandard audits. Smaller firms particularly struggle due to a variety of factors including inability to attract and retain good audit staff. Rapid technological advances mean some firms lack expertise to understand complex IT systems. Most worryingly, too frequently, inexperienced staff were conducting analysis that should be handled by senior colleagues.
These findings paint a clear picture – not all audit firms are created equal. The difference between a routine compliance exercise and a genuinely valuable business process comes down to the expertise and approach of your chosen auditor.
“At Whitley Stimpson, we’ve built our reputation on delivering audits that go beyond mere compliance. Our approach recognises that an audit should be a positive catalyst for business improvement, not simply a statutory obligation,” explains Laura Adkins, Director at accountants and business advisors Whitley Stimpson. Our audit process highlights any weaknesses in a business and provides solutions to address them. We help identify potential areas of risk such as fraud or errors and suggest alternative approaches to enhance effectiveness and risk management.”
This philosophy directly addresses the quality issues identified in the ICAEW review. Rather than deploying inexperienced staff, Whitley Stimpson maintains a team of highly experienced auditors who specialise across various industries, ensuring thorough, efficient audits with minimal disruption.
One of Whitley Stimpson’s key strengths lies in fostering long-term client relationships whilst maintaining independence.
“Many clients have a longstanding relationship with the firm before reaching the audit threshold. This familiarity allows for a smoother transition into the audit process,” says Laura. “The added scrutiny provided by an audit enhances the credibility of a business’s financial statements, instilling confidence in stakeholders, investors, and other parties,” Laura explains. “This increased credibility can be particularly valuable when dealing with banks, suppliers or staff as it demonstrates the business’s ability to operate successfully in the long term.”
For businesses subject to audit requirements – those that exceed two of the three thresholds being turnover of £15m, balance sheet total over £7.5m, and more than 50 employees – the choice of auditor can make the difference between routine compliance and a process that genuinely strengthens your business.
“Ultimately, the purpose of an audit is to instil confidence in shareholders, protect investments and maintain transparency in business operations. The goal is not to simply point out errors and criticise but to provide reassurance and support,” concludes Laura.
For more information about Whitley Stimpson’s audit services, contact Laura Adkins.