Page 24 - Inspection Report 2018
P. 24
ENGAGEmENTS WITH SIGNIFICANT ImPrOVEmENTS rEQuIrEd
Chart 1
Percentage of inspected engagements with significant improvements required
Other Audit Firms
Major Audit Firms
100
75
Percentage 50
25
0
2012 2013 2014 2015 2016 2017 2018
Source: AOB
Inspected engagements with significant improvements required were those that were either imposed with
specific remediation measures or routed to Enforcement. In Chart 1, the AOB observed a decrease to the
percentage of inspected engagements with significant improvements required for Other Audit Firms in 2018.
Although this is an improvement from the increasing trend between 2015 and 2017, the AOB still has concerns
over the quality of the smaller Other Audit Firms where more than 75% of engagements inspected require
significant levels of improvement.
In relation to Major Audit Firms, the AOB observed that there were no significant changes in the percentage of
inspected engagements with significant improvements required. However, the AOB also observed variability of
results within each inspected audit firm. In this regard, audit firms are advised to review their approach to audit
quality and resources management to ensure consistent execution across each audit firm.
AUDIT OVERSIGHT BOARD
22 ANNUAL INSPECTION REPORT 2018
83806_Inside_NEW.indd 22 5/28/19 3:02 PM
