The UK’s largest auditors are falling short of standards set by the industry watchdog, with PwC coming under fire for a “notable decline” in its standards during a review of its work.

The Financial Reporting Council has undertaken its latest inspections of audits produced by the Big Four accountancy firms – Deloitte, EY, KPMG and PwC – plus Grant Thornton and BDO, and found the general quality to be unacceptable.