The Financial Reporting Council (FRC) has published reforms to its Audit Enforcement Procedures (AEP), which it hopes will “deliver faster outcomes and earlier learnings for the UK audit market”.
The reforms include a new and expanded range of routes to resolution:
- Published Constructive Engagement (PCE), combining remediation with public transparency to support improvement and learning for the whole audit market;
- Accelerated Procedure (AP), enabling faster resolution where sufficient evidence is already available; and
- Early Admissions Process (EAP), which encourages firms to cooperate with the FRC earlier in admitting and identifying breaches of relevant requirements.
FRC believes this graduated approach will give FRC more flexibility to act quickly and in a more targeted way when serious issues arise.
