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Appendix 2 - Additional Reporting Obligations - FRC’s report on its supervision of the professional bodies in 2023/24

The FRC does not accept any liability to any party for any loss, damage or costs howsoever arising, whether directly or indirectly, whether in contract, tort or otherwise from any action or decision taken (or not taken) as a result of any person relying on or otherwise using this document or arising from any omission from it.

The Financial Reporting Council Limited 2024 The Financial Reporting Council Limited is a company limited by guarantee. Registered in England number 2486368. Registered Office: 8th Floor, 125 London Wall, London EC2Y 5AS

1. Third Country Auditor matters

UK law requires the registration and regulation of auditors that audit the accounts of companies from third countries that issue securities on regulated markets in the UK.

All Third Country Auditors (TCA) must register with us before signing UK audit reports. Where a TCA is not subject to supervision in its home country or the arrangements for quality assurance review and discipline in its home jurisdiction are not recognised by the UK as being equivalent, the FRC applies its own systems of supervision and quality assurance review. This is to ensure that all auditors of companies whose securities are traded on UK-regulated markets are subject to equivalent regulation, regardless of where the relevant issuer is incorporated. The FRC maintains a public register with the details of all registered TCAs.

The relevant functions the FRC is required to report on are the delegated functions of the Secretary of State under Part 42 of the Act, which were delegated to the FRC under Article 7 of the Statutory Auditors (Amendment of Companies Act 2006 and Delegated Functions etc) Order 2012.

The table below sets out the additional functions which the FRC has carried out this year and is required to report to the Secretary of State.

Task	Update
Requesting information from a statutory auditor under s1224 of the Act; and	In 2023 there were two instances of this: We provided the Canadian Public Accountability Board with access to audit working papers of a UK firm which audited a subsidiary that formed part of a Canadian group. We responded to a request from the USA's Public Company Accounting Oversight Board (PCAOB) and reviewed a limited number of audit work papers, on its behalf, relating to work performed by Deloitte LLP in the UK, to assist its 2022 inspection. Our conclusions were that we had no concerns about the audit approach adopted by Deloitte LLP.
Providing assistance or information to third country competent authorities under section 1253B of the Act.

Task

Update

Requesting information from a statutory auditor under s1224 of the Act; and

In 2023 there were two instances of this:

We provided the Canadian Public Accountability Board with access to audit working papers of a UK firm which audited a subsidiary that formed part of a Canadian group.
We responded to a request from the USA's Public Company Accounting Oversight Board (PCAOB) and reviewed a limited number of audit work papers, on its behalf, relating to work performed by Deloitte LLP in the UK, to assist its 2022 inspection. Our conclusions were that we had no concerns about the audit approach adopted by Deloitte LLP.

Providing assistance or information to third country competent authorities under section 1253B of the Act.

Contact Information

Financial Reporting Council 8th Floor 125 London Wall London EC2Y 5AS +44 (0)20 7492 2300

www.frc.org.uk

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Name Appendix 2 - Additional Reporting Obligations - FRC’s report on its supervision of the professional bodies in 2023/24

Appendix 2 - Additional Reporting Obligations - FRC’s report on its supervision of the professional bodies in 2023/24

1. Third Country Auditor matters

Contact Information

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