PracticeAuditFRC budget climbs 7% as freedom of information looms

FRC budget climbs 7% as freedom of information looms

Audit inspections and freedom of information requests force 7% rise in FRC budget

The Financial Reporting
Council
is anticipating a 7% increase to its budget in 2007/2008 as
a result of foreign audit inspections and the looming freedom of information
regime that is expected to apply to the
Professional Oversight
Board
.

The
EU
transparency directive
and corporate governance costs will also add
to the budget, which will come in at £10.9m for 2007/2008.

‘Most of our work is intended to make the existing regulatory framework
operate more effectively,’ said FRC chief executive Paul Boyle. ‘However, there
are some important new corporate reporting and governance requirements, mostly
arising from EU Directives, which will require attention from us and from market
participants next year.’

The budget figures were published in the watchdog’s draft updated regulatory
strategy, where the FRC also outlined its goals for the next year.

These aims include leading public debate in the UK on financial reporting,
choice in the UK audit market, and audit quality. The FRC said it will also
continue to ‘monitor corporate reporting and governance practices in the UK and
take enforcement action where appropriate’ and participate in ‘the development
of international standards and co-operation with international regulatory
organisations’.

The FRC has also promised that it will work to promote the UK’s light
regulatory system and monitor the implementation of the EU’s 8th Directive.

Further reading:

Read the FRC strategy
document
here

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Watchdog hiring executives for foreign missions

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