The Professional Oversight Board, a part of the Financial Reporting Council, today publishes its ‘Report to the Secretary of State for Business Innovation and Skills for the year to 31 March 2010’. This reports on the Board’s responsibilities:

• for statutory independent oversight over the regulation of auditors by recognised professional bodies;
• for monitoring the quality of major audits, through its Audit Inspection Unit;
• for non-statutory oversight of the regulation of actuaries and accountants by their professional bodies;
• for regulation internationally;
• as the Independent Supervisor of Auditors General.

Whilst much has been published previously, the report brings together the results of all the Board’s work and specifically summarises the results of our oversight of audit regulation by the professional bodies. The report concludes that, whilst all the recognised bodies devote substantial resources to their regulatory responsibilities, and much regulatory practice is of a high standard, there are aspects of regulatory activity at some recognised bodies that give us significant concerns.

Barbara Mills, Chair of the Oversight Board, said:

“The report reflects our varied regulatory responsibilities for audit, accountancy and actuaries, from direct monitoring of the quality of audit at the large audit firms to oversight of the way in which the professional bodies regulate their members, at a time when there is again much debate on the value and nature of audit for the future. Our work in 2010/11 will pay particular attention to how those we regulate have addressed the issues we have raised.”

1. The Financial Reporting Council (FRC) is the UK’s independent regulator responsible for promoting high quality corporate governance and reporting to foster investment.
2. The Professional Oversight Board contributes to the achievement of the Financial Reporting Council’s fundamental aim of promoting confidence in corporate reporting and governance. It has four main responsibilities:
   1. A statutory obligation to oversee the regulation of auditors by the recognised accountancy bodies;
   2. The monitoring of the quality of the auditing function in relation to economically significant entities;
   3. Independent oversight of the regulation of the accountancy profession by the professional accountancy bodies;
   4. Independent oversight of the regulation of the actuarial profession by the professional actuarial bodies.
3. The Audit Inspection Unit is a part of the Oversight Board. Its report on its activities during 2009/10 was published on 21 July.
4. The Professional Oversight Board is independent of the accountancy and actuarial professions. Its members have wide experience of business and the professions, the public sector, accountancy, auditing and actuarial work. The Chair is Dame Barbara Mills DBE QC.
5. Press enquiries should be directed to Paul George, Director of Auditing and Director, Professional Oversight Board on 0207 492 2340.