UK Regulator FRC Finds Half Of BDO Audits Below Expected Standards

The UK audit regulator, the Financial Reporting Council (FRC), has criticised BDO for its audit quality, stating that its work “significantly fell short of expectations”.

In the FRC’s latest inspection, only half of BDO’s audits required “no more than limited improvement”, the lowest score among its peers. Despite some progress from last year’s 38%, the FRC called for urgent action and placed BDO under close supervision. The inspection included 14 BDO audits, part of 206 reviews among 6,805 audited entities. The report underscores challenges for mid-tier firms in matching Big Four standards. Meanwhile, Forvis Mazars improved its audit outcomes, and the Big Four showed consistent performance. BDO’s Dominic Stammers said the firm has a plan to address the FRC’s findings.