Audit inspectors have warned of severe risk if auditors continue to make cuts in their audit work, as a result of pressures to reduce their fees
In the latest Audit Quality Inspection report, the Audit Inspection Unit – the Financial Reporting Council’s inspection arm - also found troubling problems with auditors not fully understanding the accounting and reporting requirements in the area of goodwill and intangibles, as well as a grave lack of challenge of assumptions of management.
The AIU has warned that it is so concerned that it intends to scrutinise this much more closely in the coming inspections.
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