FRC Annual Enforcement Review highlights lessons to strengthen audit market
News types: Publications
Published: 23 July 2026
The Financial Reporting Council (FRC) today published its Annual Enforcement Review 2026, setting out key findings from its enforcement activity in the year.
The Review spotlights issues in the quality of financial reporting and audit, as well as the role of firm-level systems and controls. It also addresses how insights from enforcement activity are being used to inform the FRC’s supervisory activity and work on regulatory standards.
The Review also outlines developments in the FRC’s enforcement approach, including new routes to resolution under the revised Audit Enforcement Procedure. These are designed to enable earlier engagement and more proportionate and timely outcomes while maintaining the requisite rigour and quality in the FRC’s work to support public confidence.
Penrose Foss, Executive Counsel and Executive Director of Enforcement and Investigations“The FRC’s enforcement activity underpins public and investor confidence in financial reporting and audit by holding to account those responsible for misconduct or serious and significant errors, and, importantly, doing so in a way which gives a full, fair and clear exposition of the basis of our findings for maximum educative and deterrent value.
Looking ahead: our revised approach to enforcement is designed to combine proportionality, rigour and quality in our investigation processes with a view to achieving more timely outcomes. Those, in turn, should help drive swifter improvements in financial reporting and audit across the board.”