Confidence in the quality of audits has surged dramatically across the UK's financial landscape, reaching perfect satisfaction scores, a new major study has found. However, this buoyant outlook is tempered by significant gaps in the understanding of what an auditor's role actually entails.
Unprecedented Confidence in Audit Standards
According to a document released by the Centre for Public Interest Audit (CPIA), the findings for 2025 are striking. 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.
This represents a substantial increase from the previous year's results. In 2024, satisfaction rates were lower, with 86 per cent of finance directors, 77 per cent of equity investors, and 94 per cent of audit committee chairs expressing contentment.
The report credits the concerted efforts of audit firms, audit committees, and the regulator for this positive shift. Their work to drive up standards, enhance transparency, and ensure consistency is seen as the primary force behind boosting stakeholder confidence.
Baroness Margaret Ford, chair of the CPIA, affirmed the progress, stating: “The profession has made tangible progress. Stakeholders are telling us that audits are higher quality and more valuable.”
The Clarity Deficit and Regulatory Complexity
Despite the soaring confidence in audit standards, the report highlights a critical problem: a widespread lack of understanding regarding the auditor's specific responsibilities. Many stakeholders reported only a partial or limited grasp of the scope of an auditor's duties and are calling for much clearer reporting.
Dean Beale, executive director of the CPIA, commented on this need: “People still want clearer reporting, set out in plain language, so they can see what the auditor did and what it means in practice.”
Compounding this issue is the growing complexity of regulation, which has emerged as one of the most significant risks facing the audit profession. The report shows that 53 per cent of finance directors, 60 per cent of equity investors, and 42 per cent of audit committee chairs cited this as a major concern. This data reflects mounting worries about overlapping obligations and the heavy burden of compliance, particularly for firms operating within the public interest entity (PIE) audit market.
The Stalled Path to Audit Reform
While the need for clarity and simplification is clear, the path to legislative reform remains blocked. The report noted a sense of 'reform fatigue' after years of consultations and reviews.
It confirmed that “the UK government’s audit reforms have yet to emerge.” This is despite the Labour government unveiling a Bill in its King’s Speech in July 2024 that would reform the Financial Reporting Council (FRC) into a new, powerful regulator. So far, there has been no movement on that Bill.
The delay has prompted significant political pressure. In September 2025, 66 MPs and Lords urged the Prime Minister to prioritise the long-overdue Audit Reform and Corporate Governance Bill.
Emphasising the importance of action, Dean Beale added: “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.” The CPIA has stated it will now work with stakeholders and policymakers to turn these findings into practical next steps.
