Mario Christodoulou, Accountancy Age, Tuesday 14 September 2010 at 01:00:00

AIU reports released

The UK?s reporting regulator has delivered its annual verdict on thecompliance within the city's Big Four auditors finding ?a number of importantareas? where firms need to take action.

The Audit Inspection Unit, which sits within the Financial Reporting Council,found an overall high standard of audit, but found some particular audits whichrequired ?significant improvement?

Ernst & Young came out clean with no audits found exceptionally poor.Deloitte had two audits which required significant improvement while KPMG hadtwo and PwC had one.

The report comes in a year when the audit profession has been under thespotlight over its assessment of financial assets. In the wake of the crisisregulators became concerned auditors had displayed a ?worrying lack ofscepticism? when scrutinising asset valuations, particularly of controversialfinancial instruments.

More to follow