PracticeAuditFRC to avoid further changes to codes and standards

FRC to avoid further changes to codes and standards

FRC chief executive Stephen Haddrill pledges that regulator will allow changes to codes and standards to 'bed in' rather than introduce further change

THE FRC is to refrain from introducing further codes and standards between now and 2019, and instead focus on “bedding in” and fully implementing existing changes to the code.

Addressing FRC stakeholders at the regulator’s annual priorities meeting, chief executive Stephen Hadrill (pictured) said it was important to ensure changes introduced to the body’s codes and standards functioned correctly before any further change takes place.

He said: “We have since the financial crisis introduced quite a considerable number of changes to our codes and our standards – particularly the corporate governance code – and we think now that the task for us is to embed that change rather than introduce more.”

On budgetary issues, Hadrill noted the regulator’s budget would remain the same at around £33.5m – subject to finalisation at the annual board meeting in April.

However, Haddrill added “audit profession will pay for its regulation” through increased levies as the government no longer contributes to the watchdog’s funding, while new EU audit legislation requires the FRC’s work in audit to be securely funded.

In an accompanying Priorities document, the FRC noted its audit work is partly funded on a voluntary basis by the corporate and other funding groups.

It added: “We believe that this is inappropriate under the new legislation and are rebalancing the costs of audit regulation so that they are met only by the audit profession. Our intention is to phase this in.”

Related Articles

The ‘uncomfortable truth’ behind FRC’s Big Four fines recommendations

Audit The ‘uncomfortable truth’ behind FRC’s Big Four fines recommendations

2w Carl Johnson, Stephensons
FRC urged to fine Big Four firms penalties over £10m

Audit FRC urged to fine Big Four firms penalties over £10m

4w Alia Shoaib, Reporter
FRC closes investigation into PwC over Barclays compliance

Accounting Firms FRC closes investigation into PwC over Barclays compliance

2m Alia Shoaib, Reporter
FRC closes KPMG HBOS audit investigation, Treasury Committee expects ‘full explanation’

Accounting Firms FRC closes KPMG HBOS audit investigation, Treasury Committee expects ‘full explanation’

3m Emma Smith, Managing Editor
PwC fined a record £5.1m by the FRC over RSM Tenon audit

Audit PwC fined a record £5.1m by the FRC over RSM Tenon audit

4m Alia Shoaib, Reporter
BDO overtakes KPMG to take top spot in AIM auditor rankings

Accounting Firms BDO overtakes KPMG to take top spot in AIM auditor rankings

5m Alia Shoaib, Reporter
Demand for audit skills exceeding supply

Audit Demand for audit skills exceeding supply

5m Alia Shoaib, Reporter
FRC launches investigation into PwC over BT audits

Accounting Firms FRC launches investigation into PwC over BT audits

6m Alia Shoaib, Reporter