The FRC has published today its Audit Quality Framework. The Framework has been prepared following extensive consultation on the FRC’s publication, Promoting Audit Quality, issued in November 2006.

The FRC recognises that audit quality is a dynamic concept and that the drivers and indicators of audit quality may change over time. It will therefore periodically review the Framework in light of comments received. We would be particularly interested in feedback from Audit Committees who we hope will find the Framework helpful when undertaking their responsibilities to review audit effectiveness as set out in the Combined Code. The first such review will take place in autumn 2008.

The Framework can be viewed at: http://www.frc.org.uk/about/promotingauditquality.cfm  

APB Chairman, Richard Fleck, said:

“Audit quality is a much used, but poorly, defined term. We hope this Framework will assist all stakeholders but particularly audit committees, auditors and companies in their communications and assessments of audit quality.”

1. The Financial Reporting Council (FRC) is the UK’s independent regulator responsible for promoting confidence in corporate reporting and governance.
2. The FRC’s functions are exercised principally by its operating bodies (the Accounting Standards Board, the Auditing Practices Board, the Board for Actuarial Standards, the Financial Reporting Review Panel, the Professional Oversight Board and the Accountancy & Actuarial Discipline Board) and by the Committee on Corporate Governance.
3. Copies of the Framework can be downloaded free of charge from the FRC’s website (http://www.frc.org.uk/about/promotingauditquality.cfm). Printed copies of the Framework, the FRC’s discussion paper Promoting Audit Quality and the Feedback paper prepared in light of responses to Promoting Audit Quality can be obtained free of charge from Christina Trickett on 020 7492 2341.
4. Press enquires should be directed to: Paul George, Director of Auditing on 020 7492 2340.