The FRC assessed 78% of EY’s audits that it reviewed as requiring no more than limited improvements, compared with 67% in 2017/18. Of the FTSE 350 audits by EY reviewed this year, the FRC assessed 89% as achieving this standard compared with 82% in 2017/18.
Key individual review findings related principally to the need to:
- Increase the challenge and corroboration of management assumptions in relation to intangible assets.
- Improve reporting from the firm’s internal specialists on the key assumptions underpinning the estimation of provisions.
- Ensure consistency of the group audit team’s oversight of component audit teams.
There were no significant findings arising from firm-wide work on internal quality monitoring, engagement quality control reviews and independence and ethics.