FRC announces areas of supervisory focus for 2024/25

News types: Statements, Generic Announcement

Published: 6 December 2023

The Financial Reporting Council (FRC) has today announced its areas of supervisory focus for 2024/25, including priority sectors, for corporate reporting reviews and audit quality inspections.

Priority sectors

The priority sectors for selection of company accounts and audits are:

  • Construction and Materials
  • Food Producers
  • Gas, Water & Multi-utilities
  • Industrial Metals and Mining
  • Retail

The priority sectors are only one risk factor amongst the many which the FRC takes into account when making selections, and that companies and audits from all sectors are included in the FRC’s monitoring. The financial services sector, including banking and insurance, continues to be a focus of reviews and is included annually in the selections made.

Areas of focus

The FRC’s programme of corporate reporting reviews and audit quality inspections will pay particular attention to the following areas:

  • Risks related to the current economic environment (for example: going concern, impairment, recoverability and recognition of tax assets/liabilities)
  • Climate related risks, including TCFD disclosures
  • Implementation of IFRS 17 – Insurance Contracts
  • Cash flow statements