FRC launches consultation on audit committees standard

News types: Consultation Announcement, Generic Announcement

Published: 8 November 2022

The Financial Reporting Council (FRC) has launched a consultation on its draft proposal for a minimum standard for audit committees.

This follows the Government's Response to its consultation on Restoring Trust in Audit and Corporate Governance, which set out its intention to give ARGA statutory powers to mandate minimum standards for audit committees in their role on the external audit.

The purpose of the standard will be to increase performance across audit committees in the FTSE350, ensuring a consistent approach and supporting a well-functioning audit market. The FRC is now seeking the views of its stakeholders on the draft standard, particularly those from FTSE 350 companies, to whom the standard will apply.

Following the consultation, the plan is for the standard to be available to committees on a voluntary basis by the end of 2023, ahead of the planned legislation that will make the standard mandatory.

The consultation will run until Wednesday, 8 February. Respondents should submit their comments to [email protected] by the close of business on that date.

Laura Warren, Director of Competition Policy, and Susan Currie, Chief of Staff in Regulatory Standards, explore the background and detail of the consultation in this podcast.

View the full consultation document and draft proposals