financial reporting council


  • [10] Auditing Practices Board[edit] The Auditing Practices Board Limited (APB) was originally established in 1991 as a committee of the Consultative Committee of Accountancy
    Bodies, to take responsibility within both Ireland and the United Kingdom for setting standards of auditing with the objective of enhancing public confidence in the audit process and the quality and relevance of audit services in the public

  • Former structure The FRC used to incorporate six operating bodies: Accounting Standards Board[edit] The role of the Accounting Standards Board (ASB) was to issue accounting
    standards in the United Kingdom and was recognised for that purpose under the Companies Act 1985.

  • [13] FRC replacement In March 2019, the government announced that the FRC would be replaced by a new regulator, the Audit, Reporting and Governance Authority (ARGA), with
    enhanced powers, in an effort to “change the culture” of the accounting sector.

  • [29] A UK Government policy paper, Restoring trust in audit and corporate governance, was published on 19 March 2021, consulting on its proposed steps to establish the ARGA
    and give it the formal duties, functions and powers it needs to be fully effective.

  • Financial Reporting Review Panel[edit] The Financial Reporting Review Panel (FRRP) was established in 1990 as a subsidiary of the United Kingdom’s Financial Reporting Council.

  • Board for Actuarial Standards[edit] Following the Morris Review of the Actuarial Profession, published in March 2005,[11] HM Treasury asked the Financial Reporting Council
    (FRC) to take on responsibility for oversight of the regulation of actuaries by the Institute and Faculty of Actuaries (IFoA) and the independent setting of technical actuarial standards.

  • The Conduct Committee is supported by three further Committees, members of whom, including the Chairs, sit on the Conduct Committee: o the Case Management Committee, whose
    functions include monitoring and providing oversight in respect of enforcement investigations and tribunal proceedings; o the Audit Quality Review Committee; and o the Corporate Reporting Review Committee, which ensures the consistency and
    quality of the FRC’s monitoring work.

  • In 2011, the Board published information for the first time about shortcomings in self-regulation by particular institutes.

  • [1] In December 2018, an independent review of the FRC, led by Sir John Kingman, recommended its replacement by a new Audit, Reporting and Governance Authority,[2] a recommendation
    followed by the government in March 2019.

  • Press reports highlighted comments about ACCA, which had implemented recommendations to improve its examination syllabus, but needed to pay greater attention to continuing
    monitoring of members who had registered as auditors some years ago.

  • [9] The Board also operated an Audit Inspection Unit (AIU) that oversees auditing organisations and makes recommendations for appropriate regulatory actions by governmental
    and professional authorities.

  • [3] Plans for the new regulator were included in the September 2019 Queen’s Speech and, despite concerns that the launch of ARGA might be delayed, the Department for Business,
    Enterprise and Industrial Strategy (BEIS) told Accountancy Daily in February 2020 that “next steps on audit reform” would be taken in the first quarter of 2020.

  • The name change reflected the Board’s additional responsibility for oversight of the actuarial profession from that date.

  • It was a part of the Financial Reporting Council (FRC), the independent regulator of corporate governance and reporting in the UK.

  • Thus, FRC is now the authority that may issue accounting standards in the UK.

  • Advisory councils[edit] • Corporate Reporting – advises the FRC Executive on the development and maintenance of high quality, effective and proportionate Standards, Guidance,
    SORPS and Practice Notes for accounting and narrative reporting work.

  • [25] Still under pressure to improve, in October 2018, the FRC proposed reforms, including banning from earning consultancy fees at businesses they audit, to tackle the “underlying
    falling trust in business and the effectiveness of audit,” and severely rebuked KPMG.

  • The Board’s stated purpose was to support the FRC’s goal of investor and public confidence in the financial governance of business organisations.

  • [26] In July 2020, the FRC told the Big Four that they must submit plans by October 2020 to separate their audit and consultancy operations by 2024.

  • In 2002 APB was re-established under the auspices of The Accountancy Foundation and, following a UK government review, it has been transferred to the Financial Reporting Council

  • The Financial Reporting Council (FRC) is an independent regulator in the UK and Ireland based in London Wall in the City of London, responsible for regulating auditors, accountants
    and actuaries, and setting the UK’s Corporate Governance and Stewardship Codes.

  • • Conduct Committee – responsible for overseeing the FRC’s work in promoting high quality corporate reporting.

  • Before 5 May 2006, the Board was known as the Professional Oversight Board for Accountancy.

  • It took over the task of setting accounting standards from the Accounting Standards Committee (ASC) in 1990.

  • The FRC seeks to promote transparency and integrity in business by aiming its work at investors and others who rely on company reports, audits and high-quality risk management.


Works Cited

[‘”About the FRC”. Financial Reporting Council.
2. ^ “Independent review of the Financial Reporting Council (FRC) launches report”. 18 December 2018. Retrieved 18 December 2018.
3. ^ Jump up to:a b “UK audit watchdog to be replaced by new
governing body”. BBC News. BBC. 11 March 2019. Retrieved 11 March 2019.
4. ^ Sweet, P., Ireland confirms switch to FRC auditing framework, published 4 November 2017, accessed 15 November 2022
5. ^ “Funding”. Financial Reporting Council.
6. ^
“FRC Structure”. Financial Reporting Council.
7. ^ Disciplinary funding costs leap at the ICAEW, Accountancy Age, 10 May 2011
8. ^ Licensed to audit?, Accountancy Age, 13 May 2011
9. ^ “Complaints about Registered Auditors, Accountants and Actuaries”.
Archived from the original on 29 June 2012.
10. ^ Orlik, Rose (22 July 2011). “POB regulation report names and shames institutes”. Accountancy Age. Retrieved 28 July 2011.
11. ^ “Morris Review”. Financial Reporting Council.
12. ^ FRC Board,
Financial Reporting Council. Retrieved 19 January 2015.
13. ^ Jump up to:a b Collinson, Patrick (2 November 2018). “Head of UK accounting watchdog to quit amid criticism over Carillion”. Guardian. Retrieved 3 November 2018.
14. ^ “Simon Dingemans
and Sir Jon Thompson join FRC as chair and chief executive”. Scottish Financial News. 8 October 2019. Retrieved 23 February 2020.
15. ^ “Striking Inconsistencies”. Private Eye. No. 1516. 21 February 2020. p. 38.
16. ^ Carrick, Angharad (15 June
2020). “Former FRC chairman Simon Dingemans joins Carlyle”. City AM. Retrieved 15 June 2020.
17. ^ “Jan du Plessis named as Business Secretary’s candidate for Chair of Financial Reporting Council”. GOV.UK. Retrieved 22 December 2021.
18. ^ “Business
Secretary appoints new non-executive directors to board of Financial Reporting Council”. Gov.UK – BEIS. Retrieved 9 February 2022.
19. ^ Prior, Grant (29 January 2018). “Carillion accountant KPMG faces probe by watchdog”. Construction Enquirer.
Retrieved 29 January 2018.
20. ^ Boffey, Daniel; Davies, Rob (17 March 2018). “Former Carillion finance directors expected to face investigation”. Guardian. Retrieved 19 March 2018.
21. ^ Morby, Aaron (19 March 2018). “FRC launches probe into
Carillion finance directors”. Construction Enquirer. Retrieved 19 March 2018.
22. ^ Partington, Richard (22 March 2018). “PwC charges more than £20m for first eight weeks of Carillion collapse”. Guardian. Retrieved 21 March 2018.
23. ^ Jump up
to:a b Davies, Rob (16 May 2018). “‘Recklessness, hubris and greed’ – Carillion slammed by MPs”. Guardian. Retrieved 16 May 2018.
24. ^ Carillion: Second Joint report from the Business, Energy and Industrial Strategy and Work and Pensions Committees
of Session 2017–19 (PDF). London: House of Commons. 2018. p. 5. Retrieved 17 May 2018.
25. ^ Carillion: Second Joint report from the Business, Energy and Industrial Strategy and Work and Pensions Committees of Session 2017–19 (PDF). London: House
of Commons. 2018. pp. 94–95. Retrieved 17 May 2018.
26. ^ Collinson, Patrick (8 October 2018). “Accounting watchdog could ban auditors from consultancy work”. Guardian. Retrieved 8 October 2018.
27. ^ “Accountancy giants face revamp amid criticism”.
BBC News. BBC. 6 July 2020. Retrieved 6 July 2020.
28. ^ White, Sara (6 February 2020). “Plans for ARGA audit regulator due by end March”. Accountancy Daily. Retrieved 30 December 2020.
29. ^ Godfrey, Hannah (13 November 2020). “BEIS audit reform
proposals expected to be made public in the new year”. City AM. Retrieved 30 December 2020.
30. ^ “Restoring trust in audit and corporate governance”. Department for Business, Energy & Industrial Strategy. Retrieved 19 March 2021.
31. ^ Bouvier,
Stephen (24 September 2021). “FRC officials detail ARGA transition timetable, upcoming workplan priorities”. IPE Magazine. Retrieved 8 February 2022.
Photo credit:’]