Confidence in audit quality surges despite knowledge gaps
Confidence in audit quality has increased but many stakeholders have reported only a partial or limited understanding of the scope of auditor responsibilities, according to new findings.
A document from the Centre for Public Interest Audit (CPIA) shows that all three stakeholder groups surveyed – finance directors, equity investors and audit committee chairs – reported 100 per cent satisfaction with the overall quality of the audit process in 2025.
All the responses increased from 2024’s results, where 86 per cent of finance directors, 77 per cent of equity investors and 94 per cent of audit committee chairs were satisfied with the audit process.
The efforts by audit firms, audit committees and the regulator to drive up standards, transparency, and consistency were credited with boosting stakeholder confidence.
Baroness Margaret Ford, chair of the CPIA, said: “The profession has made tangible progress. Stakeholders are telling us that audits are higher quality and more valuable.”
Calls for reporting clarity
Despite the increased confidence in the standards, the report highlighted gaps in understanding of the auditor’s role, with respondents requesting clarity on the responsibilities of auditors and management.
Dean Beale, executive director of the CPIA, said: “People still want clearer reporting, set out in plain language, so they can see what the auditor did and what it means in practice.”
The increasing complexity of regulation has emerged as one of the most significant risks facing the audit profession, cited by 53 per cent of finance directors, 60 per cent equity investors, and 42 per cent audit committee chairs.
The report noted that this data reflects growing concerns about overlapping obligations and the burden of compliance, particularly for firms operating in the public interest entity (PIE) audit market.
While the report noted reform fatigue, after years of consultations, reviews and draft legislation, “the UK government’s audit reforms have yet to emerge”.
This comes as the Labour government, in its King’s Speech in July 2024, unveiled a Bill that would reform the Financial Reporting Council (FRC) into a new regulator; however, there has been no movement on that Bill so far.
So much so that the Prime Minister was urged by 66 MPs and Lords in September to prioritise the long-overdue Audit Reform and Corporate Governance Bill.
“Proportionate reform is the best way to protect the gains we are seeing while keeping the market resilient for the UK’s largest, most economically important companies,” Beale added.
The CPIA stated that it will collaborate with stakeholders and policymakers to translate these findings “into practical next steps”.