According to ICAEW, 24% of conducted audit reviews would require further action to comply with existing accounting regulations.

The most problematic audit areas included ownership, completeness of revenue, rights and obligations relating to fixed assets, stock/WIP valuation, goodwill and intangibles.

Notably, some accounts were still prepared under old UK GAAP when they should have transitioned to FRS 102.

As a result of the audit review, several firms were put into special measures or in a couple of cases had their audit registration withdrawn.

Source: SWAT