Satisfaction with UK PIE audit remains 'very high', says CPIA
Stakeholder satisfaction with the quality of audits for UK public interest entities has remained consistently high for the third consecutive year, with 96% of respondents reporting they are satisfied or very satisfied, according to the latest Audit Trust Index published by the Centre for Public Interest Audit on 13 October.
The survey, which gathered responses from finance directors, audit committee chairs and UK-based equity investors, reveals sustained confidence in PIE audits despite a notable shift in how satisfied stakeholders feel. While overall satisfaction held at 96%, the proportion reporting they are 'very satisfied' fell from 74% in 2025 to 48% in 2026, closer to the 46% recorded in 2024.
Public interest entities in the UK include companies with securities traded on regulated markets, credit institutions such as banks and building societies, and insurance undertakings, as defined in Section 494A of the Companies Act 2006. The CPIA, incorporated as a not-for-profit company on 27 June 2024 under the chairmanship of Baroness Margaret Ford of Cunninghame, draws its membership from UK PIE auditors and professional bodies including the Institute of Chartered Accountants in England and Wales and the Institute of Chartered Accountants of Scotland.
Drivers of confidence
Respondents cited auditors' industry knowledge and competence, communication quality, usefulness of findings, and independence as the primary factors driving satisfaction. The intrinsic value of audit also scored highly, with 91% of stakeholders satisfied with what audits deliver.
These results align with regulatory assessments. The Financial Reporting Council's Annual Review of Audit Quality, published on 22 July 2026, found that 79% of 116 audits inspected were rated as good or requiring only limited improvements, with just three requiring significant improvements compared to ten the previous year.
The high satisfaction levels represent a recovery from corporate failures including Carillion and BHS, which prompted the FRC to lead voluntary separation of audit and non-audit practices among the Big Four firms to restore public trust.
AI adoption creates mixed sentiment
While 79% of respondents expressed satisfaction with how auditors deploy artificial intelligence, this marked a decline from 87% in 2025, with the proportion 'very satisfied' dropping sharply from 48% to 14%. Investor confidence showed particular weakness, with 15% reporting limited or no confidence in AI use.
Audit committee chairs demonstrated the strongest preference for human auditors, particularly for matters requiring professional judgement. Stakeholders see AI as most valuable for processing large data volumes but expressed concern that over-reliance on AI could undermine auditors' professional scepticism, cited by 46% of respondents as their top concern. Data privacy and security risks ranked second at 42%, displacing last year's primary worries about AI hallucinations and auditor AI skills.
Despite these concerns, 54% of respondents believe AI will improve identification of control failures and misstatements.
Demand for expanded assurance
A striking 98% of stakeholders want auditors to provide independent assurance on elements outside traditional financial statements, though preferences vary by group. Audit committee chairs and finance directors prioritise assurance over controls reporting and regulatory disclosures, while investors favour sustainability information, key performance indicators and leadership statements.
This demand presents a challenge for policymakers. The government's Modernising Corporate Reporting consultation, published on 7 September 2026 and running until 30 November, proposes removing certain assurance requirements for some companies as it seeks to streamline reporting focused on investor needs.
Understanding of current assurance arrangements varies significantly among stakeholder groups. While 51% of audit committee chairs report being 'very certain' about which parts of corporate reports receive external audit assurance, only 29% of investors and 31% of finance directors share that level of certainty.
Historical context
The 2026 results follow a trajectory of improvement since the inaugural Audit Trust Index published on 6 December 2024, when approximately one-third of audit committee chairs, 21% of investors and 16% of finance directors expressed concerns about auditors' ability to detect financial distress and going concern issues. The 2025 survey showed significant progress, with satisfaction rates reaching 100% among finance directors and equity investors for audit value, compared to scores in the 80s in 2024.
Whether the 2026 dip in 'very satisfied' responses represents normal variation or the start of a trend remains unclear, though finance directors consistently report lower satisfaction levels than other groups.
The survey results arrive as the UK audit landscape undergoes significant change. The FRC published its first consolidated Annual Review of Audit Quality in 2026, replacing separate overview and firm-specific reports. Meanwhile, the proposed expansion of PIE definition to include companies with 750 or more employees and £750 million annual turnover, announced in 2022, remains unimplemented as the MCR consultation considers the future scope of enhanced reporting and audit requirements.
