The UK's accounting regulator, the Financial Reporting Council (FRC), has expressed concern over the Big Four firms' increasing reliance on offshore teams for complex audit work. This shift moves beyond routine tasks to areas requiring "professional judgement." The Big Four — Deloitte, EY, KPMG, and PwC — have long utilized offshore operations, particularly in India, for cost reduction and talent access.

Two auditors anonymously voiced concerns about the quality of work from these offshore teams. The FRC has warned firms to "future-proof" against offshoring risks and will monitor "extended team models" over the next year. The regulator also highlighted issues at PwC UK, where overseas member firms performed non-audit work for audit clients without proper approvals.

The FRC's annual quality report also noted a persistent gap in audit quality between the largest firms and mid-tier practices. While the Big Four received positive verdicts on at least 89% of inspected audits, firms like BDO and Forvis Mazars saw only 46% of their audits rated as "good" or requiring "limited improvement." The FRC has criticized BDO's audit quality for three consecutive years.