Auditor Regulatory Sanctions Procedure

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Overview

The Auditor Regulatory Sanctions Procedure covers failures to comply with the Regulatory Framework for Auditing of major local audits. Major local audits are principally local authorities and health bodies other than Foundation Trusts.

A major local audit, as defined in Regulation 12 of the Local Audit (Professional Qualification and Major Local Audit) Regulations 2014, is a local audit of a relevant authority which meets the following criteria:

  • It's total income or total expenditure exceeds £500 million (for financial years beginning on or before 1 April 2024), or £875 million (for financial years beginning on or after 1 April 2025) , or
  • For a local authority pension fund, at least 20,000 members or gross assets in excess of £1,000 million.

The FRC is not responsible for audit quality monitoring at NHS Foundation Trusts. This is the responsibility of NHS England.

Following inspection by the Audit Quality Review team, the FRC may independently determine that an Audit Firm may have failed to comply with the rules relevant to local audit and is liable for sanctions. The matter will then be referred to the independent Enforcement Committee under the procedures and guidance set out below.

Current versions
Name Auditors Regulatory Sanctions Procedure (Effective 1 March 2026)
Publication date 27 February 2026
Format PDF, 947.7 KB. View HTML version
Name Auditor Regulatory Sanctions Guidance (April 2016)
Publication date 1 April 2016
Type Guidance
Format PDF, 386.5 KB. View HTML version
Previous versions
Name Auditor Regulatory Sanctions Procedure (March 2021)
Publication date 1 April 2021
Format PDF, 208.2 KB. View HTML version
Name Auditor Regulatory Sanctions Procedure (January 2021)
Publication date 1 January 2021
Format PDF, 203.2 KB. View HTML version
Name ​Auditor Regulatory Sanctions Procedure (June 2016)
Publication date 17 June 2016
Format PDF, 496.9 KB. View HTML version

Crown Dependencies’ Recognised Auditor Regulatory Sanctions Procedure

There are similar arrangements under the Crown Dependencies’ Recognised Auditor Regulatory Sanctions Procedure where the Audit Quality Review team has inspected a Recognised Auditor registered in one of the Crown Dependencies of Guernsey, the Isle of Man and Jersey.

Current versions
Name Crown Dependencies Recognised Auditor Sanctions Procedure (Effective 1 March 2026)
Publication date 27 February 2026
Format PDF, 767.3 KB. View HTML version
Name Recognised Auditor Regulatory Sanctions Guidance (June 2016)
Publication date 17 June 2016
Type Guidance
Format PDF, 500.8 KB. View HTML version

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