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ICAS Audit Monitoring 2024: What Firms Are Getting Right—and Wrong?

Technical FAQs

As audit professionals, staying informed of regulatory trends and expectations is essential—not just for compliance, but for improving the quality and credibility of our work.

ICAS recently published its findings from the 2024 audit monitoring visits, revealing a mixed picture of audit quality across firms. While a notable amount of good audit work was observed, there was also a slight increase in compliance issues compared to 2023.

ICAS conducted 25 audit monitoring visits in 2024, consistent with the previous year. While there was a rise in visits with only less significant findings (24%), there was also a doubling in the most serious findings (16%) compared to 2023. This signals a growing divergence in audit quality across the profession.

The most common breaches of International Standards on Auditing (ISAs) were:

  • ISA 230 (Documentation) – flagged in 92% of visits
  • ISA 315 (Risk Assessment) – 92%
  • ISA 240 (Fraud Considerations) – 84%
  • ISA 500 (Audit Evidence) – 80%
  • ISA 530 (Sampling) and ISA 570 (Going Concern) – 64% each

These findings highlight persistent challenges in audit planning, documentation, and fraud risk procedures.

Every firm visited was found to be in breach of Audit Regulation 3.10, relating to ISQM1 compliance. Other frequent breaches included:

  • 3.03 (Acceptance and Reappointment) – 72%
  • 3.08 (Statutory Requirements) – 56%
  • 3.02 (Ethical Compliance) – 40%
  • 3.20 (Audit Compliance Review) – 40%

These are not just technicalities—they’re core to maintaining public confidence in the audit profession.

Firms on a 6-year monitoring cycle generally fared better than those on a shortened cycle. This suggests that long-term investment in quality systems and culture pays off.

ICAS encourages firms to:

  • Embed ISQM1 into daily practice, not just policy documents
  • Strengthen internal reviews and root cause analysis
  • Invest in training that goes beyond compliance to build professional judgment

Where can HAT help?

At HAT, we’re committed to helping audit firms raise the bar on quality and compliance. Whether you’re preparing for a monitoring visit or simply aiming to enhance your audit processes, we offer a comprehensive suite of support services:

  • Audit compliance reviews, including cold file and hot file reviews
  • ISQM1 evaluations and root cause analysis
  • Audit training, including quarterly updates and firm-specific in-house sessions
  • A technical helpline covering a wide range of audit topics

Our goal is to help you not only meet regulatory expectations but exceed them—building a culture of quality that stands up to scrutiny and supports long-term success.

Contact HAT at HAT Group – Accounting Compliance & Consultancy Partner

The full ICAS audit monitoring report can be downloaded here.