FRC publishes annual report as ARGA transformation continues

News types: Generic Announcement

Published: 21 July 2023

The Financial Reporting Council (FRC) has today published its Annual Report and Accounts for 2022/23. The report highlights the FRC's continued focus this past year on delivering its purpose as an assertive regulator driving higher standards, while progressing towards becoming the Audit, Reporting and Governance Authority (ARGA).

The FRC has made significant strides in implementing recommendations from the three independent reviews without legislative backing. This includes ongoing workstreams related to the government's response to the corporate governance and audit reform White Paper.

Key FRC achievements covered in the report include:
  • The launch of a consultation on enhancing the UK Corporate Governance Code and minimum standards for audit committees.
  • Entering a Memorandum of Understanding with DLUHC to take on the role of shadow system leader for local audit.
  • Continuing assertive supervision of audit firms and strong enforcement to hold firms accountable.
  • Introducing regulatory innovations like the Scalebox and Audit Sandbox to drive improvements.
  • Progressing work on the future ARGA funding model and locating ARGA headquarters in Birmingham.

FRC CEO Sir Jon Thompson said:

"I am incredibly proud to reflect on the FRC's significant achievements this past year in further establishing ourselves as an assertive regulator driving higher audit quality and corporate governance standards. We have made tremendous strides in our transformation into the future Audit, Reporting and Governance Authority.

“But there is still important work ahead. I want to thank our talented staff for their dedication and commitment to our purpose of upholding transparency and integrity in business."

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