ICAEW monitoring report points to uplift in audit quality in 2025

The ICAEW's 2025 audit monitoring report shows an improvement in audit quality, with 73% of inspected audits rated good or generally acceptable (up from 67% in 2024) and audits requiring significant improvement falling to 6% (from 10%). The institute reviewed 667 audit files across 375 companies and has tightened Audit Regulations, requiring firms to notify it within 21 days of certain audit movements. For markets, stronger audit quality and faster regulator engagement should bolster investor confidence in UK-listed companies, supporting the broader UK 100 index sentiment, though persistent challenges—growth pressures, tech transitions and staffing—limit the upside and could mean only gradual benefits to market trust.