FRC issues July consultations
News types: Consultation Announcement
Published: 17 July 2025
The Financial Reporting Council (FRC) has today issued five consultations as part of its scheduled July release, seeking stakeholder input on a new Practice Note for auditing small and medium-sized enterprises (SMEs), the emerging findings of the FRC's SME audit market study, targeted amendments to FRS 102, the UK’s PIE Auditor Registration Regulations, and an updated taxonomies suite.
Practice Note: The Audit of Small and Medium-sized Enterprises
As part of its year-long campaign to help SMEs access audit services, the FRC is consulting on the introduction of a Practice Note to help auditors apply International Standards on Auditing (ISAs) proportionately to smaller entities.
Read the Practice Note consultation document.
This Practice Note, which aims to give practitioners confidence to use professional judgment when calibrating audit work, was developed with feedback gathered during the FRC’s market study examining how effectively the audit market is serving SMEs.
Emerging Findings
The emerging findings of this market study have also been published today. The FRC is seeking stakeholder feedback on both these emerging findings and the proposed remedies, which you can read in full in the report.
Registrations are open for the FRC’s upcoming webinar to discuss the Practice Note on 30 July.
PIE Auditor Registration Regulations
The FRC is consulting on draft amendments to the Public Interest Entity (PIE) Auditor Registration Regulations, focusing on three key areas:
- Enhancing proportionality to reduce regulatory burden;
- Clarifying processes to improve operational efficiency;
- And increased activity in the areas of restructuring, reorganisation and private capital ownership of PIE Registered audit firms.
The consultation package includes the proposed Regulations with tracked changes and updated Guidance documents. Stakeholders are invited to comment on the proposals, the 25-day processing KPI, and potential Market Health Indicators.
Roundtable discussions will be held in September to gather additional feedback during the three-month consultation period.
FRED 87: FRS 102 Amendments
The FRC has issued Financial Reporting Exposure Draft (FRED) 87, proposing limited scope amendments to FRS 102 to follow the recent changes to IFRS Accounting Standards.
These amendments are proposed to maintain the existing level of alignment following recent changes to IFRS Accounting Standards. Those entities that do not choose to adapt their financial statement formats under FRS 102 will not be impacted by these amendments.
Taxonomy Suite 2026
The FRC has published a draft of the 2026 Taxonomy Suite, welcoming feedback on its draft changes concerning recent amendments to IFRS 7, FRED 85, the Charities SORP 2026 and more.
The consultation is open until Wednesday 10 September 2025.