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The Financial Reporting Council’s report on its oversight responsibilities during 2021/22
Presented to the Parliament pursuant to section 1252(10) of, and paragraph 10(3) of Schedule 13 to, the Companies Act 2006.
Financial Reporting Council Limited 2022
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- 1. Executive Summary
- Conclusions
- Oversight of the Professional Bodies
- Third country auditors
- Equivalence and Adequacy
- Mutual Recognition of Professional Qualifications
- Oversight of statutory audit: RSBs and RQBs
- Oversight of audit quality monitoring
- Oversight of registration of statutory auditors and statutory audit firms
- Oversight of Enforcement
- Oversight of Continuing Professional Development
- Oversight of RQBs
- Oversight of local audit
- Oversight of the Institute and Faculty of Actuaries (IFoA)
- Oversight of accountancy
- Oversight of governance arrangements
- Review of activities to combat climate change
- Regulation of Third Country Auditors (TCAs)
- Equivalence and Adequacy
- Mutual Recognition of Professional Qualifications
- 2. Oversight of Statutory Audit: Recognised Supervisory Bodies (RSBs) and Recognised Qualifying Bodies (RQBs)
- RSB Performance against Key Performance Indicators (KPIs) for annual review activity and audit quality monitoring
- Monitoring of Enforcement[^11]
- Key findings from the oversight and monitoring of RSBs
- Registration of Statutory Auditors and Statutory Audit Firms[^7]
- Monitoring of Enforcement[^11]
- Continuing Professional Development (CPD)[^12]
- Key findings from oversight and monitoring of RQBs
- 1. Executive Summary
- Conclusions
- Oversight of the Professional Bodies
- Third country auditors
- Equivalence and Adequacy
- Mutual Recognition of Professional Qualifications
- Oversight of statutory audit: RSBs and RQBs
- Oversight of audit quality monitoring
- Oversight of registration of statutory auditors and statutory audit firms
- Oversight of Enforcement
- Oversight of Continuing Professional Development
- Oversight of RQBs
- Oversight of local audit
- Oversight of the Institute and Faculty of Actuaries (IFoA)
- Oversight of accountancy
- Oversight of governance arrangements
- Review of activities to combat climate change
- Regulation of Third Country Auditors (TCAs)
- Equivalence and Adequacy
- Mutual Recognition of Professional Qualifications
- 2. Oversight of Statutory Audit: Recognised Supervisory Bodies (RSBs) and Recognised Qualifying Bodies (RQBs)
1. Executive Summary
Conclusions
This is the annual report from the Financial Reporting Council (FRC) to the Secretary of State for Business, Energy, and Industrial Strategy (BEIS) on how the FRC has discharged its statutory and non-statutory oversight (of the professional bodies) responsibilities in 2021/22. The report describes the key matters that arose from the FRC's oversight activities. It also updates on the FRC's work to assess third country audit arrangements and on progressing Equivalence and Adequacy[^1] assessments and Mutual Recognition Agreements (MRAs).
Oversight of the Professional Bodies
Based on our oversight in 2021/22, our principal conclusions are as follows:
- The Recognised Supervisory Bodies (RSBs) are complying sufficiently with the terms and conditions of the Delegation Agreements[^2].
- The RSBs and Recognised Qualifying Bodies (RQBs) continue to meet the requirements of the recognition criteria of Schedule 10[^3] and Schedule 11[^4] of the Companies Act 2006 (the Act).
- We are satisfied that the RQBs meet the requirements of the Act in approving and monitoring Training Offices.
The professional bodies (RSBs and RQBs) continued to face significant challenges in delivering their regulatory activities due to the Covid-19 pandemic. The bodies have adapted their processes to fulfil their regulatory responsibilities by replacing face-to-face visits and manual processes with online remote working. Remote learning and invigilation have been widely used to allow education and examinations to continue.
During 2020 the Covid-19 pandemic and the associated restrictions meant that ACCA (Association of Chartered Certified Accountants), ICAI (Chartered Accountants Ireland) and ICAEW (Institute of Chartered Accountants in England and Wales) were unable to complete their monitoring of all UK audit registered firms within the required six-year timescale. However, the backlog from 2020 has been cleared and only a small number of visits were missed in 2021. In all cases this was due to specific difficulties at the audit firm rather than resourcing constraints at the RSBs[^5].
Third country auditors
We registered 42 Third Country Auditors this year.
Equivalence and Adequacy
The FRC has been commissioned by BEIS to undertake two Equivalence assessments and one Adequacy assessment per year. We completed Equivalence and Adequacy assessments of the US and are currently assessing the Equivalence of the Cayman Islands and Bermuda.
Mutual Recognition of Professional Qualifications
Our work includes agreeing Mutual Recognition Agreements with third countries covering the recognition of audit qualifications. Having met over 30 countries, we are now having more detailed discussions with Luxembourg, Switzerland, South Africa, New Zealand, and Australia as these countries have indicated most willingness and interest.
Oversight of statutory audit: RSBs and RQBs
Oversight of statutory audit consists of 4 regulatory pillars – (i) the RSB's monitoring of non-PIE auditors and inspection of their audit files; (ii) the RSB's registration of statutory auditors and firms; (iii) the RSB's approach to enforcement; and (iv) the RSB's approach to Continuing Professional Development.
We also oversee the quality of the audit qualifications delivered by the RQBs.
Oversight of audit quality monitoring
Two years ago, the FRC required ICAEW to implement a revised risk-based approach to selecting files for audit quality monitoring at the seven largest firms. The approach should be top-down, in that each time a large firm is visited, the file selection should be made from the whole firm's audit portfolio list, reflecting the risks to audit quality and to the public interest. Last year ICAEW developed its proposed approach, which was approved by the FRC. This approach was piloted in the final quarter of 2021 and the precise methodology evolved during this pilot exercise. Our future oversight will include an assessment of the ICAEW's updated processes.
Our oversight of audit quality monitoring by ACCA in 2020 found that improvements were required in the documentation of evidence by Senior Compliance Officers (SCOs) responsible for audit quality monitoring reviews. We required that ACCA create guidance to describe how SCOs should document their reviews. This requirement has remained open whilst ACCA works to draft, issue, and embed further guidance to SCOs. We have offered to support ACCA in the development of the required guidance.
Our oversight of audit quality monitoring by ICAI this year has found that improvements were required in several areas relating to the application of auditing standards, including challenging the sufficiency of professional scepticism; the standard and extent of documentation on audit monitoring files; and the effectiveness of internal controls over the quality of conclusions drawn from audit monitoring reviews. ICAI have acknowledged our findings and developed actions to address them.
Oversight of registration of statutory auditors and statutory audit firms
Our oversight of audit registration continues to include a recommendation to ACCA to look at ways of streamlining and expediting the process for its registration decisions. In addition, we recommended to ACCA that internal decision-making referrals are tracked to avoid undue delays being incurred.
We also continue to recommend that ICAI provides IT training to support its staff in carrying out regulatory tasks and invests in an appropriate IT solution to integrate registration documentation.
We made recommendations to ICAEW to improve the decision-making processes of its Registration Committee and to introduce a performance review process for its committee members.
Oversight of Enforcement
Overall, each RSB continues to incorporate effective processes to ensure that the conduct of investigations, including the imposition of sanctions against members, are consistent, appropriate, and timely. Following our oversight work this year we have closed all open requirements and recommendations at the RSBs, except for one at ICAEW and one at ICAI. We previously recommended that ICAEW document its key processes and procedures in relation to its enforcement work. To satisfy this recommendation ICAEW is developing procedural documentation for use by its enforcement staff, and we will review the implementation of this in 2022/23. We previously recommended ICAI consider the functions of the Case Management System (CMS) and hard copy files. ICAI should ensure all relevant documentation is maintained and accurate on the systems. To satisfy this recommendation ICAI are implementing a new CMS, the effectiveness of which will be reviewed in 2022/23.
Oversight of Continuing Professional Development
The FRC has delegated the oversight of CPD in its entirety to the RSBs. We carry out annual oversight visits to ensure the work conducted by the RSBs is done in accordance with the conditions of the delegation agreement. Our oversight of the RSBs' processes for Continuing Professional Development (CPD) has highlighted some areas that require improvement.
Following our deep dive review in 2020/21 ICAEW has commenced a restructuring of its CPD monitoring programme which is currently being implemented. CAI is also embarking on a new CPD framework in 2022 as it implements the Irish Auditing and Accounting Supervisory Authority's (IAASA) CPD guidelines. The new framework which ICAI develops will also cover CPD of UK statutory auditors. We will conduct a review of the bodies' new procedures and sample test the work carried out by ICAEW and ICAI in 2022/23.
During the 2020/21 visit POT's CPD team identified a potential gap in the monitoring of non-PIE auditors at PIE audit firms. Although the FRC is responsible for firmwide procedures at PIE audit firms it does not necessarily, nor is it required to, test explicitly the CPD compliance of non-PIE auditors at the PIE audit firms where it reviews the firmwide procedures. To rectify the gap created ICAEW and Institute of Chartered Accountants of Scotland (ICAS) have put in place procedures to ensure that in 2022 CPD compliance for all groups of auditors will recommence, including all statutory auditors at audit firms that audit PIEs.
Oversight of RQBs
Our oversight of the RQBs this year focussed on their processes for awarding exemptions and overseeing practical training given COVID restrictions, and on the processes for marking examinations.
Our oversight and monitoring of RQBs did not identify any systemic issues that affected their compliance with the professional qualification requirements under Schedule 11.
Oversight of local audit
ICAS surrendered its RSB status for local audit on 31 December 2020. Since then, ICAEW has been the only RSB for firms registering for local audit.
We are content with how ICAEW has fulfilled its responsibility for local audit regulation. Two recommendations made to the ICAEW last year remain open to enable sufficient time for ICAEW to demonstrate that changes have been embedded into their ongoing processes.
We have assured ourselves of the Chartered Institute of Public Finance and Accountancy's (CIPFA) continued delivery of RQB responsibilities in relation to local audit by reviewing its response to the Covid-19 pandemic and considering the effectiveness of its governance arrangements.
During the year we undertook a public consultation on the FRC's Guidance to the RSBs on the recognition of Key Audit Partners. The feedback statement and revised guidance were published in June 2022.
Oversight of the Institute and Faculty of Actuaries (IFoA)
Based on the oversight activities we undertook in 2021 we found no evidence to indicate that IFoA's current regulatory framework was not effectively implemented.
Over 2021 IFoA reviewed aspects of its regulatory framework to ensure it is fit for purpose and operating in the public interest. IFoA concluded an in-depth review of its Disciplinary Scheme which will include addressing open prior year recommendations made by FRC. In addition, IFoA proposes changing the definition of misconduct under its disciplinary scheme.
In May 2022, the Government published its Response[^6] to the white paper on Restoring Trust in Audit and Corporate Governance.
In light of this, the IFoA have acknowledged they will need to consider whether any further changes are required to the IFoA's disciplinary framework once legislation has been drafted. This will ensure compatibility with ARGA's regime once ARGA is effected. We look forward to engaging with the IFoA on this matter to enable a smooth transition to ARGA's regime.
IFoA published its updated Practising Certificate Scheme in January 2022. FRC raised a concern that changes to the scheme could weaken the overall rigour of the scheme. IFoA agreed to incorporate changes suggested by the FRC to address this concern.
We were content that proposals by the IFoA to amend its byelaws in respect of honorary membership and retirement from Council would not harm the public interest.
Through the Government Response to the consultation on reform, the Government has confirmed that ARGA's oversight of the IFoA will be brought onto a statutory basis. The FRC will be engaging in activities to facilitate the transition from the current voluntary oversight arrangement to the new statutory regime.
Oversight of accountancy
Our current work remains focused only on complaints handling related to Chartered Accountancy bodies. None of the complaints reviewed raised issues of substantive mishandling and no recommendations for improvements were made to the bodies in relation to these complaints. The remaining matters either fell outside the FRC's complaints handling full review remit, or the complainant had not first exhausted the professional accountancy body's or actuarial body's complaints procedure.
In May 2022 the Government confirmed its intention to extend the remit of the proposed statutory accountancy oversight regime to include all relevant professional bodies, whose members are required to hold professional-level accountancy qualifications equivalent to a level 6 qualification or above. This scope is broader than chartered accountancy bodies but excludes bodies whose members hold specialist qualifications, such as tax. The extended regime would involve ARGA monitoring and reviewing the regulation of the bodies' members; and a power for the regulator to require the bodies to take specific actions where significant public interest concerns are identified.
Oversight of governance arrangements
In 2021/22 we observed Boards and Committees focusing on those most relevant to each RSB's and RQB's responsibilities for regulation of auditors and followed up on previous recommendations. We found no significant shortcomings in the openness of bodies' governance arrangements and governance activity. All had taken steps towards addressing prior year recommendations and we will follow up on the remaining recommendations in 2022.
In 2021 IFoA's newly formed Regulatory Board took responsibility for the oversight and interrogation of all IFoA's regulatory activities, including the public interest aspects of all IFoA's qualifications and admissions framework. We sought evidence that the new Regulatory Board had fulfilled its remit over 2021. We were satisfied that oversight of the disciplinary scheme continued to be effective.
Review of activities to combat climate change
All the professional bodies we oversee have recognised the importance of climate change within their strategy. Most have made available significant educational resources to support their members, however all the bodies have some way to go to embedding climate change and sustainability related considerations into their regulatory frameworks. The FRC expects the professional bodies to have identified the risks associated with climate change for financial reporting and auditing and to be taking mitigating actions through their education and qualifications, and through their regulatory responsibilities.
Regulation of Third Country Auditors (TCAs)
As at March 2022, 135 registered TCAs were subject to annual review and monitoring. The EU Exit Transition Period ended on 31 December 2020. A firm from any country outside the UK that audits companies listed on a regulated market in the UK must now register as a TCA. Since the end of the Transition Period, we have registered 42 new applications from firms in the European Economic Area (EEA) and have 2 applications under consideration.
Equivalence and Adequacy
The FRC has been commissioned by BEIS to undertake two Equivalence assessments and one Adequacy assessment per year. We completed Equivalence and Adequacy assessments of the US and are currently assessing the Equivalence of the Cayman Islands and Bermuda.
Mutual Recognition of Professional Qualifications
We met our counterparts and other relevant bodies in over 30 EU and non-EU countries. We have now narrowed down our priority countries to those where there is a clear interest in a mutual recognition agreement with the UK and the potential for negotiations to commence in the short term.
2. Oversight of Statutory Audit: Recognised Supervisory Bodies (RSBs) and Recognised Qualifying Bodies (RQBs)
RSB Performance against Key Performance Indicators (KPIs) for annual review activity and audit quality monitoring
The RSBs have reported on three KPIs, two on annual review activity and one on audit quality. Appendix 3, Condition 3 of the Delegation Agreement states: 'The RSB shall agree KPIs with the FRC which focus on the improvement of audit quality. When targets are not met the RSB may be required to conduct a root cause analysis'.
The bodies reported their performance against the KPIs as follows:
| KPI: 100% of Registered Auditors subject to an accelerated audit monitoring visit ordered by the relevant RSB Committee receive that visit within the timeframe specified by the relevant RSB Committee. |
|---|
| Performance reported by the RSBs | |
|---|---|
| ACCA | Met (apart from firms that could not accommodate remote visits within the timeframe due to the Covid-19 pandemic). |
| ICAEW | Met (apart from firms that could not accommodate remote visits within the timeframe due to the Covid-19 pandemic). |
| ICAS | Met |
| ICAI | Met (apart from firms that could not accommodate remote visits within the timeframe due to the Covid-19 pandemic). |
| KPI: In cases where the audit monitoring visit report is submitted to the relevant RSB Committee for a decision, 100% of reports are issued by the registering RSB to Registered Auditors within 180 days from the date the audit monitoring visit is concluded. |
|---|
| Performance reported by the RSBs | | ACCA (Association of Chartered Certified Accountants) has implemented changes to address the need for greater rig | ACCA (Association of Chartered Certified Certified Accountants) has implemented changes to address the need for greater rigour in the documentation of evidence by Senior Compliance Officers (SCOs) and the handling of data by ACCA's Audit Monitoring Committee members. They are working to draft, issue, and embed further guidance to SCOs. Furthermore, additional resource is now in place to monitor KPIs going forwards and process changes are being implemented with the Hearings team to ensure these KPIs are met in future years. Additionally, ACCA is considering practical changes to enable a quicker registration process without significantly reducing the rigour of the overall assessment, and aims to track internal decision-making referrals to avoid undue delays. |
| ICAEW | ICAEW has agreed to assume the hosting of the newly developed register, proactively supporting a smooth and timely transition of hosting arrangements between it and ICAS to ensure continued compliance with the requirements of the Delegation Agreements. They have made recommendations to the Audit Registration Committee to improve on the consistency of its approach to voting on matters under consideration and reviewing the performance of its members. ICAEW has been proactive in acknowledging the need to implement these improvements.
Last year, the FRC required ICAEW to implement a revised risk-based approach to selecting files for audit quality monitoring at the seven largest firms. This top-down approach involves file selection from the firm's whole audit portfolio, reflecting risks to audit quality and public interest. ICAEW developed and piloted this approach in Q4 2021, and the methodology continues to evolve. Future oversight will assess ICAEW's updated processes. Changes to ICAEW's sampling processes from last year have been implemented, with proposed sample sizes and additional risk factors for large firms being shared and discussed with the FRC annually. |
| ICAS | ICAS has worked for the last 18 months on developing an updated platform for the register of statutory auditors. In 2019/20, ICAS was required to make changes to its investigative process to ensure maximum independence in decision-making at executive and committee levels. A review this year confirmed that ICAS meetings are led by the appointed Chair, and decisions regarding sub-committee member appointments are demonstrably independent. |
| ICAI | ICAI has built a new internal process using Microsoft SharePoint for registration documentation. However, not all managers received necessary training, limiting functionality. The FRC recommends tailored IT training for all team members on regulatory tasks requiring SharePoint and investment in an appropriate IT solution to integrate registration documentation.
Improvements were required in several areas of audit quality monitoring, including the sufficiency of professional scepticism, documentation standards on audit monitoring files, and the effectiveness of internal controls over conclusions drawn from audit monitoring reviews.
In 2019/20, ICAI was recommended to ensure greater consistency in case progression, which led to the incorporation of the FRC's recommended changes in its draft Case Handling Guidelines. Following review, ICAI is deemed to handle enforcement cases consistently and evidence appropriate intelligence referral. ICAI is also implementing a new Case Management System (CMS) to address concerns regarding documentation maintenance and accuracy, with its effectiveness to be reviewed in 2022/23. |
Monitoring of Enforcement[^11]
We continued to assess the RSBs' processes and procedures across all stages of their enforcement process, from complaints reporting through to sanctions. We based this on samples of current and closed cases. We also followed up on the RSB's progress on open cases that we had reviewed in the previous year.
Our enforcement monitoring inspections did not identify any systemic issues that raise concerns about the compliance of the RSBs with the Enforcement Conditions under the Delegation Agreements.
A summary covering our findings and key areas for improvement in relation to enforcement, which apply to ICAI, ICAEW and ICAS, is below. We have agreed action plans to ensure that our requirements and recommendations are implemented on a timely basis.
| RSB | Findings, Requirements and Recommendations | ACC| | | --- | --- | | ACCA | ACCA confirmed that this KPI was not met. The reasons for delays included matters that were within ACCA's control (e.g., resourcing) but also outside its control (e.g., illness and Covid-19 related matters which impacted on hearings being delayed). We accept that it has been a difficult year for all the RSBs and that there were certain factors outside ACCA's control which resulted in this KPI not being met. ACCA has informed us that additional resource is now in place to monitor KPIs going forwards and process changes are being implemented with the Hearings team to ensure this KPI is met in future years. | | ICAEW | Met | | ICAS | Met | | ICAI | Met |
| KPI: 75% of completed audit file reviews should not require more than limited improvements. Where completed audit file reviews by the registering RSB on a registered auditor require more than limited improvements, the RSB will apply guidance agreed with the FRC to determine whether a root cause analysis should be conducted by the firm. |
|---|
| Performance reported by the RSBs | |
|---|---|
| ACCA | Met |
| ICAEW | Met |
| ICAS | Met |
| ICAI | Met |
Key findings from the oversight and monitoring of RSBs
The findings in relation to delegated regulatory tasks are summarised below.
Registration of Statutory Auditors and Statutory Audit Firms[^7]
The lockdown restrictions imposed by the Government meant that, for the most part, we had to conduct our review of the RSBs' registration processes remotely. Consistent with previous visits, we sent an information request list to each RSB setting out all the information required for our review. The RSBs were able to provide files and other information requested to assist our review through cloud-based solutions. This included:
- information on processes and governance;
- a sample of files for a variety of outcomes relevant to initial and ongoing registration of statutory audit firms and individuals registered to sign audit reports; and
- an overview of the RSB's progress against previous years' requirements and recommendations.
We did not identify any systemic issues that raise concerns about the compliance of the RSBs with the conditions applying to registration under the Delegation Agreements.
A summary of our key findings and areas for improvement in relation to registration, which apply to ICAEW, ACCA and ICAI, are as follows:
| RSB | Findings and Recommendations | ACCA | ACCA confirmed that this KPI was not met. The reasons for delays included matters that were within ACCA's control (e.g., resourcing) but also outside its control (e.g., illness and Covid-19 related matters which impacted on hearings being delayed). We accept that it has been a difficult year for all the RSBs and that there were certain factors outside ACCA's control which resulted in this KPI not being met. ACCA has informed us that additional resource is now in place to monitor KPIs going forwards and process changes are being implemented with the Hearings team to ensure this KPI is met in future years. | | ICAEW | Met | | ICAS | Met | | ICAI | Met |
Monitoring of Enforcement[^11]
We continued to assess the RSBs' processes and procedures across all stages of their enforcement process, from complaints reporting through to sanctions. We based this on samples of current and closed cases. We also followed up on the RSB's progress on open cases that we had reviewed in the previous year.
Our enforcement monitoring inspections did not identify any systemic issues that raise concerns about the compliance of the RSBs with the Enforcement Conditions under the Delegation Agreements.
A summary covering our findings and key areas for improvement in relation to enforcement, which apply to ICAI, ICAEW and ICAS, is below. We have agreed action plans to ensure that our requirements and recommendations are implemented on a timely basis.
| RSB | Findings, Requirements and Recommendations | ACCA (Association of Chartered Certified Accountants) has implemented changes to address the need for greater rigor in the documentation of evidence by Senior Compliance Officers (SCOs) and the handling of data by ACCA's Audit Monitoring Committee members. They are working to draft, issue, and embed further guidance to SCOs. Furthermore, additional resource is now in place to monitor KPIs going forwards and process changes are being implemented with the Hearings team to ensure these KPIs are met in future years. Additionally, ACCA is considering practical changes to enable a quicker registration process without significantly reducing the rigor of the overall assessment, and aims to track internal decision-making referrals to avoid undue delays. |
| ICAEW | ICAEW has agreed to assume the hosting of the newly developed register, proactively supporting a smooth and timely transition of hosting arrangements between it and ICAS to ensure continued compliance with the requirements of the Delegation Agreements. They have made recommendations to the Audit Registration Committee to improve on the consistency of its approach to voting on matters under consideration and reviewing the performance of its members. ICAEW has been proactive in acknowledging the need to implement these improvements.
Last year, the FRC required ICAEW to implement a revised risk-based approach to selecting files for audit quality monitoring at the seven largest firms. This top-down approach involves file selection from the firm's whole audit portfolio, reflecting risks to audit quality and public interest. ICAEW developed and piloted this approach in Q4 2021, and the methodology continues to evolve. Future oversight will assess ICAEW's updated processes. Changes to ICAEW's sampling processes from last year have been implemented, with proposed sample sizes and additional risk factors for large firms being shared and discussed with the FRC annually. |
| ICAS | ICAS has worked for the last 18 months on developing an updated platform for the register of statutory auditors. In 2019/20, ICAS was required to make changes to its investigative process to ensure maximum independence in decision-making at executive and committee levels. A review this year confirmed that ICAS meetings are led by the appointed Chair, and decisions regarding sub-committee member appointments are demonstrably independent. |
| ICAI | ICAI has built a new internal process using Microsoft SharePoint to store and share application documents. At the date of our review, not all managers had received the required training. This meant that some functionality was not available to them, such as access to updated checklists. We recommend that ICAI provides tailored IT training to all team members who work on regulatory tasks that require SharePoint so that they can carry out their roles unencumbered.
In addition, we recommend that ICAI invests in an appropriate IT solution to integrate registration documentation.
Our oversight of audit quality monitoring by ICAI this year has found that improvements were required in several areas stemming from one audit where the FRC disagreed with the grade awarded by ICAI to the firm. The FRC has required ICAI to make improvements in relation to the application of auditing standards, including challenging the sufficiency of professional scepticism; the standard and extent of documentation on audit monitoring files; and the effectiveness of the internal controls over the quality of conclusions drawn from audit monitoring reviews.
In 2019/20 we recommended that ICAI ensures that it progresses cases with greater consistency. Accordingly, ICAI incorporated the FRC's recommended changes to its draft Case Handling Guidelines. Following our review this year we are satisfied that ICAI is handling enforcement cases consistently and evidences appropriate referral of intelligence between relevant ICAI departments.
In 2017/18 we recommended ICAI consider the respective functions of the Case Management System (CMS) and hard copy files. We further recommended ICAI put in place process improvements to ensure all relevant documentation is maintained on files and the details on the CMS are accurate. ICAI are in the process of implementing its new CMS to resolve the concerns. The effectiveness of the system and its KPI reporting will be reviewed in 2022/23. |
Continuing Professional Development (CPD)[^12]
This year we followed up on the findings from the 2020/21 ‘deep dive' review of RSBs' procedures for regulating CPD. All RSBs assess compliance with CPD regulations as part of their audit quality monitoring reviews.
We are pleased that that the RSBs, whose registered auditors include firms that audit PIEs, have changed their procedures to ensure their monitoring of CPD compliance covers all statutory auditors in both non-PIE and PIE audit firms. Although the FRC is responsible for firmwide procedures at PIE audit firms, the FRC has delegated the oversight of CPD in its entirety to the RSBs. We carry out annual oversight visits to ensure the work conducted by the RSBs is done in accordance with the conditions of the delegation agreement. If the RSBs wish to rely on the work carried out by the FRC they must ensure that the FRC's monitoring is sufficient to cover the RSBs' responsibilities for both PIE and non-PIE auditors.
Our other key findings, recommendations, and requirements for improvement, are summarised below.
| RSB | Findings, Requirements and Recommendations | ACCA (Association of Chartered Certified Accountants) has implemented changes to address the need for greater rigour in the documentation of evidence by Senior Compliance Officers (SCOs) and the handling of data by ACCA's Audit Monitoring Committee members. They are working to draft, issue, and embed further guidance to SCOs. Furthermore, additional resource is now in place to monitor KPIs going forwards and process changes are being implemented with the Hearings team to ensure these KPIs are met in future years. Additionally, ACCA is considering practical changes to enable a quicker registration process without significantly reducing the rigour of the overall assessment, and aims to track internal decision-making referrals to avoid undue delays. | | ICAEW | Last year we required ICAEW to make changes to its CPD processes to ensure it has an effective procedure for monitoring CPD. Following our review ICAEW has commenced implementing a new CPD programme which will change its systems and processes for monitoring CPD compliance from 2022 onwards. | ACCA | ACCA confirmed that this KPI was not met. The reasons for delays included matters that were within ACCA's control (e.g., resourcing) but also outside its control (e.g., illness and Covid-19 related matters which impacted on hearings being delayed). We accept that it has been a difficult year for all the RSBs and that there were certain factors outside ACCA's control which resulted in this KPI not being met. ACCA has informed us that additional resource is now in place to monitor KPIs going forwards and process changes are being implemented with the Hearings team to ensure this KPI is met in future years. | | ICAEW | Last year we required ICAEW to make changes to its CPD processes to ensure it has an effective procedure for monitoring CPD. Following our review ICAEW has commenced implementing a new CPD programme which will change its systems and processes for monitoring CPD compliance from 2022 onwards. |
Key findings from oversight and monitoring of RQBs
Social distancing requirements and other restrictions in place during the Covid-19 pandemic have continued through 2021/2022. The RQBs have continued to utilise remote invigilation of examinations to offer students choice and flexibility when sitting exams, however, the use of examination centres was also available. RQBs have also utilised remote working options in their oversight of practical training activities.
Some students sitting exams under remote invigilation have continued to suffer disruption, for example from poor internet connections, software problems or other interruptions. The RQBs provided help to these students to resolve issues during exams and gave additional consideration at the time of marking to any students who submitted verifiable evidence of IT problems that had hindered their exam performance.
We concluded that the RQBs took appropriate steps to deal fairly with any issues that arose and have maintained the security of the exams by minimising any opportunities for cheating. Overall, we consider that the students have been well supported.
Marking of examinations is one aspect which contributes to the standard of the qualification. There is also an expectation that students should be treated fairly. We considered whether the marking process, in particular where judgement is being used, resulted in an accurate reflection of the students' performance and that the markers were marking consistently.
Social distancing requirements necessitated the bodies to amend their polices to ensure they could continue to award exemptions for previous learning and to monitor the practical training provided by audit firms.
Our oversight and monitoring of RQBs did not identify any systemic issues that affected their compliance with the professional qualification requirements under Schedule 11 of the Act.
We have summarised the recommendations below.
| RQB | Findings and Recommendations | ACCA | ACCA confirmed that this KPI was not met. The reasons for delays included matters that were within ACCA's control (e.g., resourcing) but also outside its control (e.g., illness and Covid-19 related matters which impacted on hearings being delayed). We accept that it has been a difficult year for all the RSBs and that there were certain factors outside ACCA's control which resulted in this KPI not being met. ACCA has informed us that additional resource is now in place to monitor KPIs going forwards and process changes are being implemented with the Hearings team to ensure this KPI is met in future years. | | ICAEW | Last year we required ICAEW to make changes to its CPD processes to ensure it has an effective procedure for monitoring CPD. Following our review ICAEW has commenced implementing a new CPD programme which will change its systems and processes for monitoring CPD compliance from 2022 onwards. | 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| | The Financial Reporting Council’s report on its oversight responsibilities during 2021/22 | | | November 2022 |
1. Executive Summary
Conclusions
This is the annual report from the Financial Reporting Council (FRC) to the Secretary of State for Business, Energy, and Industrial Strategy (BEIS) on how the FRC has discharged its statutory and non-statutory oversight (of the professional bodies) responsibilities in 2021/22. The report describes the key matters that arose from the FRC's oversight activities. It also updates on the FRC's work to assess third country audit arrangements and on progressing Equivalence and Adequacy[^1] assessments and Mutual Recognition Agreements (MRAs).
Oversight of the Professional Bodies
Based on our oversight in 2021/22, our principal conclusions are as follows:
- The Recognised Supervisory Bodies (RSBs) are complying sufficiently with the terms and conditions of the Delegation Agreements[^2].
- The RSBs and Recognised Qualifying Bodies (RQBs) continue to meet the requirements of the recognition criteria of Schedule 10[^3] and Schedule 11[^4] of the Companies Act 2006 (the Act).
- We are satisfied that the RQBs meet the requirements of the Act in approving and monitoring Training Offices.
The professional bodies (RSBs and RQBs) continued to face significant challenges in delivering their regulatory activities due to the Covid-19 pandemic. The bodies have adapted their processes to fulfil their regulatory responsibilities by replacing face-to-face visits and manual processes with online remote working. Remote learning and invigilation have been widely used to allow education and examinations to continue.
During 2020 the Covid-19 pandemic and the associated restrictions meant that ACCA (Association of Chartered Certified Accountants), ICAI (Chartered Accountants Ireland) and ICAEW (Institute of Chartered Accountants in England and Wales) were unable to complete their monitoring of all UK audit registered firms within the required six-year timescale. However, the backlog from 2020 has been cleared and only a small number of visits were missed in 2021. In all cases this was due to specific difficulties at the audit firm rather than resourcing constraints at the RSBs[^5].
Third country auditors
We registered 42 Third Country Auditors this year.
Equivalence and Adequacy
The FRC has been commissioned by BEIS to undertake two Equivalence assessments and one Adequacy assessment per year. We completed Equivalence and Adequacy assessments of the US and are currently assessing the Equivalence of the Cayman Islands and Bermuda.
Mutual Recognition of Professional Qualifications
Our work includes agreeing Mutual Recognition Agreements with third countries covering the recognition of audit qualifications. Having met over 30 countries, we are now having more detailed discussions with Luxembourg, Switzerland, South Africa, New Zealand, and Australia as these countries have indicated most willingness and interest.
Oversight of statutory audit: RSBs and RQBs
Oversight of statutory audit consists of 4 regulatory pillars – (i) the RSB's monitoring of non-PIE auditors and inspection of their audit files; (ii) the RSB's registration of statutory auditors and firms; (iii) the RSB's approach to enforcement; and (iv) the RSB's approach to Continuing Professional Development.
We also oversee the quality of the audit qualifications delivered by the RQBs.
Oversight of audit quality monitoring
Two years ago, the FRC required ICAEW to implement a revised risk-based approach to selecting files for audit quality monitoring at the seven largest firms. The approach should be top-down, in that each time a large firm is visited, the file selection should be made from the whole firm's audit portfolio list, reflecting the risks to audit quality and to the public interest. Last year ICAEW developed its proposed approach, which was approved by the FRC. This approach was piloted in the final quarter of 2021 and the precise methodology evolved during this pilot exercise. Our future oversight will include an assessment of the ICAEW's updated processes.
Our oversight of audit quality monitoring by ACCA in 2020 found that improvements were required in the documentation of evidence by Senior Compliance Officers (SCOs) responsible for audit quality monitoring reviews. We required that ACCA create guidance to describe how SCOs should document their reviews. This requirement has remained open whilst ACCA works to draft, issue, and embed further guidance to SCOs. We have offered to support ACCA in the development of the required guidance.
Our oversight of audit quality monitoring by ICAI this year has found that improvements were required in several areas relating to the application of auditing standards, including challenging the sufficiency of professional scepticism; the standard and extent of documentation on audit monitoring files; and the effectiveness of internal controls over the quality of conclusions drawn from audit monitoring reviews. ICAI have acknowledged our findings and developed actions to address them.
Oversight of registration of statutory auditors and statutory audit firms
Our oversight of audit registration continues to include a recommendation to ACCA to look at ways of streamlining and expediting the process for its registration decisions. In addition, we recommended to ACCA that internal decision-making referrals are tracked to avoid undue delays being incurred.
We also continue to recommend that ICAI provides IT training to support its staff in carrying out regulatory tasks and invests in an appropriate IT solution to integrate registration documentation.
We made recommendations to ICAEW to improve the decision-making processes of its Registration Committee and to introduce a performance review process for its committee members.
Oversight of Enforcement
Overall, each RSB continues to incorporate effective processes to ensure that the conduct of investigations, including the imposition of sanctions against members, are consistent, appropriate, and timely. Following our oversight work this year we have closed all open requirements and recommendations at the RSBs, except for one at ICAEW and one at ICAI. We previously recommended that ICAEW document its key processes and procedures in relation to its enforcement work. To satisfy this recommendation ICAEW is developing procedural documentation for use by its enforcement staff, and we will review the implementation of this in 2022/23. We previously recommended ICAI consider the functions of the Case Management System (CMS) and hard copy files. ICAI should ensure all relevant documentation is maintained and accurate on the systems. To satisfy this recommendation ICAI are implementing a new CMS, the effectiveness of which will be reviewed in 2022/23.
Oversight of Continuing Professional Development
The FRC has delegated the oversight of CPD in its entirety to the RSBs. We carry out annual oversight visits to ensure the work conducted by the RSBs is done in accordance with the conditions of the delegation agreement. Our oversight of the RSBs' processes for Continuing Professional Development (CPD) has highlighted some areas that require improvement.
Following our deep dive review in 2020/21 ICAEW has commenced a restructuring of its CPD monitoring programme which is currently being implemented. CAI is also embarking on a new CPD framework in 2022 as it implements the Irish Auditing and Accounting Supervisory Authority's (IAASA) CPD guidelines. The new framework which ICAI develops will also cover CPD of UK statutory auditors. We will conduct a review of the bodies' new procedures and sample test the work carried out by ICAEW and ICAI in 2022/23.
During the 2020/21 visit POT's CPD team identified a potential gap in the monitoring of non-PIE auditors at PIE audit firms. Although the FRC is responsible for firmwide procedures at PIE audit firms it does not necessarily, nor is it required to, test explicitly the CPD compliance of non-PIE auditors at the PIE audit firms where it reviews the firmwide procedures. To rectify the gap created ICAEW and Institute of Chartered Accountants of Scotland (ICAS) have put in place procedures to ensure that in 2022 CPD compliance for all groups of auditors will recommence, including all statutory auditors at audit firms that audit PIEs.
Oversight of RQBs
Our oversight of the RQBs this year focussed on their processes for awarding exemptions and overseeing practical training given COVID restrictions, and on the processes for marking examinations.
Our oversight and monitoring of RQBs did not identify any systemic issues that affected their compliance with the professional qualification requirements under Schedule 11.
Oversight of local audit
ICAS surrendered its RSB status for local audit on 31 December 2020. Since then, ICAEW has been the only RSB for firms registering for local audit.
We are content with how ICAEW has fulfilled its responsibility for local audit regulation. Two recommendations made to the ICAEW last year remain open to enable sufficient time for ICAEW to demonstrate that changes have been embedded into their ongoing processes.
We have assured ourselves of the Chartered Institute of Public Finance and Accountancy's (CIPFA) continued delivery of RQB responsibilities in relation to local audit by reviewing its response to the Covid-19 pandemic and considering the effectiveness of its governance arrangements.
During the year we undertook a public consultation on the FRC's Guidance to the RSBs on the recognition of Key Audit Partners. The feedback statement and revised guidance were published in June 2022.
Oversight of the Institute and Faculty of Actuaries (IFoA)
Based on the oversight activities we undertook in 2021 we found no evidence to indicate that IFoA's current regulatory framework was not effectively implemented.
Over 2021 IFoA reviewed aspects of its regulatory framework to ensure it is fit for purpose and operating in the public interest. IFoA concluded an in-depth review of its Disciplinary Scheme which will include addressing open prior year recommendations made by FRC. In addition, IFoA proposes changing the definition of misconduct under its disciplinary scheme.
In May 2022, the Government published its Response[^6] to the white paper on Restoring Trust in Audit and Corporate Governance.
In light of this, the IFoA have acknowledged they will need to consider whether any further changes are required to the IFoA's disciplinary framework once legislation has been drafted. This will ensure compatibility with ARGA's regime once ARGA is effected. We look forward to engaging with the IFoA on this matter to enable a smooth transition to ARGA's regime.
IFoA published its updated Practising Certificate Scheme in January 2022. FRC raised a concern that changes to the scheme could weaken the overall rigour of the scheme. IFoA agreed to incorporate changes suggested by the FRC to address this concern.
We were content that proposals by the IFoA to amend its byelaws in respect of honorary membership and retirement from Council would not harm the public interest.
Through the Government Response to the consultation on reform, the Government has confirmed that ARGA's oversight of the IFoA will be brought onto a statutory basis. The FRC will be engaging in activities to facilitate the transition from the current voluntary oversight arrangement to the new statutory regime.
Oversight of accountancy
Our current work remains focused only on complaints handling related to Chartered Accountancy bodies. None of the complaints reviewed raised issues of substantive mishandling and no recommendations for improvements were made to the bodies in relation to these complaints. The remaining matters either fell outside the FRC's complaints handling full review remit, or the complainant had not first exhausted the professional accountancy body's or actuarial body's complaints procedure.
In May 2022 the Government confirmed its intention to extend the remit of the proposed statutory accountancy oversight regime to include all relevant professional bodies, whose members are required to hold professional-level accountancy qualifications equivalent to a level 6 qualification or above. This scope is broader than chartered accountancy bodies but excludes bodies whose members hold specialist qualifications, such as tax. The extended regime would involve ARGA monitoring and reviewing the regulation of the bodies' members; and a power for the regulator to require the bodies to take specific actions where significant public interest concerns are identified.
Oversight of governance arrangements
In 2021/22 we observed Boards and Committees focusing on those most relevant to each RSB's and RQB's responsibilities for regulation of auditors and followed up on previous recommendations. We found no significant shortcomings in the openness of bodies' governance arrangements and governance activity. All had taken steps towards addressing prior year recommendations and we will follow up on the remaining recommendations in 2022.
In 2021 IFoA's newly formed Regulatory Board took responsibility for the oversight and interrogation of all IFoA's regulatory activities, including the public interest aspects of all IFoA's qualifications and admissions framework. We sought evidence that the new Regulatory Board had fulfilled its remit over 2021. We were satisfied that oversight of the disciplinary scheme continued to be effective.
Review of activities to combat climate change
All the professional bodies we oversee have recognised the importance of climate change within their strategy. Most have made available significant educational resources to support their members, however all the bodies have some way to go to embedding climate change and sustainability related considerations into their regulatory frameworks. The FRC expects the professional bodies to have identified the risks associated with climate change for financial reporting and auditing and to be taking mitigating actions through their education and qualifications, and through their regulatory responsibilities.
Regulation of Third Country Auditors (TCAs)
As at March 2022, 135 registered TCAs were subject to annual review and monitoring. The EU Exit Transition Period ended on 31 December 2020. A firm from any country outside the UK that audits companies listed on a regulated market in the UK must now register as a TCA. Since the end of the Transition Period, we have registered 42 new applications from firms in the European Economic Area (EEA) and have 2 applications under consideration.
Equivalence and Adequacy
The FRC has been commissioned by BEIS to undertake two Equivalence assessments and one Adequacy assessment per year. We completed Equivalence and Adequacy assessments of the US and are currently assessing the Equivalence of the Cayman Islands and Bermuda.
Mutual Recognition of Professional Qualifications
We met our counterparts and other relevant bodies in over 30 EU and non-EU countries. We have now narrowed down our priority countries to those where there is a clear interest in a mutual recognition agreement with the UK and the potential for negotiations to commence in the short term.
2. Oversight of Statutory Audit: Recognised Supervisory Bodies (RSBs) and Recognised Qualifying Bodies (RQBs)
RSB Performance against Key Performance Indicators (KPIs) for annual review activity and audit quality monitoring
The RSBs have reported on three KPIs, two on annual review activity and one on audit quality. Appendix 3, Condition 3 of the Delegation Agreement states: 'The RSB shall agree KPIs with the FRC which focus on the improvement of audit quality. When targets are not met the RSB may be required to conduct a root cause analysis'.
The bodies reported their performance against the KPIs as follows:
| KPI: 100% of Registered Auditors subject to an accelerated audit monitoring visit ordered by the relevant RSB Committee receive that visit within the timeframe specified by the relevant RSB Committee. |
|---|
| Performance reported by the RSBs | |
|---|---|
| ACCA | Met (apart from firms that could not accommodate remote visits within the timeframe due to the Covid-19 pandemic). |
| ICAEW | Met (apart from firms that could not accommodate remote visits within the timeframe due to the Covid-19 pandemic). |
| ICAS | Met |
| ICAI | Met (apart from firms that could not accommodate remote visits within the timeframe due to the Covid-19 pandemic). |
| KPI: In cases where the audit monitoring visit report is submitted to the relevant RSB Committee for a decision, 100% of reports are issued by the registering RSB to Registered Auditors within 180 days from the date the audit monitoring visit is concluded. |
|---|
| Performance reported by the RSBs | | ACCA (Association of Chartered Certified Accountants) has implemented changes to address the need for greater rigour in the documentation of evidence by Senior Compliance Officers (SCOs) and the handling of data by ACCA's Audit Monitoring Committee members. They are working to draft, issue, and embed further guidance to SCOs. Furthermore, additional resource is now in place to monitor KPIs going forwards and process changes are being implemented with the Hearings team to ensure this KPI is met in future years. Additionally, ACCA is considering practical changes to enable a quicker registration process without significantly reducing the rigour of the overall assessment, and aims to track internal decision-making referrals to avoid undue delays. |
| ICAEW | Met |
| ICAI | In 2019/20 we recommended that ICAI ensures that it progresses cases with greater consistency. Accordingly, ICAI incorporated the FRC's recommended changes to its draft Case Handling Guidelines. Following our review this year we are satisfied that ICAI is handling enforcement cases consistently and evidences appropriate referral of intelligence between relevant ICAI departments.
In 2017/18 we recommended ICAI consider the respective functions of the Case Management System (CMS) and hard copy files. We further recommended ICAI put in place process improvements to ensure all relevant documentation is maintained on files and the details on the CMS are accurate. ICAI are in the process of implementing its new CMS to resolve the concerns. The effectiveness of the system and its KPI reporting will be reviewed in 2022/23. |
| ICAEW | In 2019/20 we recommended that ICAEW document its key processes and procedures in relation to its enforcement work. This is necessary to mitigate the risk of loss of knowledge through future unanticipated events, such as when key personnel leave the team. In 2020/21 we reviewed process documentation provided by ICAEW (alongside its relevant Byelaws and Regulations) but did not consider that the documentation provided adequately documented end to end processes; nor did it provide guidance on the general process or key steps the team should follow when making and documenting key judgements.
ICAEW is developing procedural documentation for use by its enforcement staff, which will support revised Byelaws and Regulations. As part of our oversight during 2022/23 we will assess whether the procedural documents meet the need identified in our recommendation. |
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------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------F E A R S O M E
G O V E R N A N C E
G U I D E L I N E S
P R O P O S E D
A M E N D M E N T S
M A Y 2 0 2 2
F R C
F i n a n c i a l R e p o r t i n g C o u n c i l
T h e F R C ’s r e p o r t o n i t s o v e r s i g h t r e s p o n s i b i l i t i e s
d u r i n g 2 0 2 1 / 2 2
F R C
F i n a n c i a l R e p o r t i n g C o u n c i l
R E Q U I R E D
A M E N D M E N T S
T O
F E A R S O M E
G O V E R N A N C E
G U I D E L I N E S
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F i n a n c i a l R e p o r t i n g C o u n c i l
T h e F R C ’s r e p o r t o n i t s o v e r s i g h t r e s p o n s i b i l i t i e s
d u r i n g 2 0 2 1 / 2 2
F R C
F i n a n c i a l R e p o r t i n g C o u n c i l
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O V E R S I G H T
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F i n a n c i a l R e p o r t i n g C o u n c i l
F R C
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F R C
F R C
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T h e F i n a n c i a l R e p o r t i n g C o u n c i l ’s r e p o r t o n i t s o v e r s i g h t r e s p o n s i b i l i t i e s d u r i n g 2 0 2 1 / 2 2
T h e F R C ’s r e p o r t o n i t s o v e r s i g h t r e s p o n s i b i l i t i e s d u r i n g 2 0 2 1 / 2 2
T h e F R C ’s r e p o r t o n i t s o v e r s i g h t r e s p o n s i b i l i t i e s d u r i n g 2 0 2 1 / 2 2
T h e F R C ’s r e p o r t o n i t s o v e r s i g h t r e s p o n s i b i l i t i e s d u r i n g 2 0 2 1 / 2 2
T h e F R C ’s r e p o r t o n i t s o v e r s i g h t r e s p o n s i b i l i t i e s d u r i n g 2 0 2 1 / 2 2
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T h e F R C ’s r e p o r t o n i t s o v e r s i g h t r e s p o n s i b i l i t i e s d u r i n g 2 0 2 1 / 2 2
T h e F R C ’s r e p o r t o n i t s o v e r s i g h t r e s p o n s i b i l i t i e s d u r i n g 2 0 2 1 / 2 2
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T h e F R C ’s r e p o r t o n i t s o v e r s i g h t r e s p o n s i b i l i t i e s d u r i n g 2 0 2 1 / 2 2
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