FRC Enforcement Refresh: AEP Changes Now in Force

The Financial Reporting Council has published its updated Audit Enforcement Procedure. The package introduces some welcome changes: a higher bar for opening enforcement investigations, a focus on more efficient enforcement outcomes and more routes to resolution. But there also remain some unwelcome gaps: how will the FRC ensure there is sufficient audit expertise being deployed in enforcement decision-making? And how will the FRC ensure that it takes a proportionate approach in its investigations?

In our latest briefing we examine the new enforcement procedures available to the FRC and consider what will be needed for them to succeed in practice.