FRC Enforcement – A Year in Review 2023/2024

This year’s Financial Reporting Council (“FRC”) Annual Enforcement Review reports on a period of consolidation by the regulator, characterised by steady progress amid continued uncertainty on wider audit and governance reform. Against a backdrop of evolving political priorities, the FRC has demonstrated resilience and adaptability - streamlining its caseload, embedding a more pragmatic enforcement approach, and sharpening its focus on real improvement across the profession.

In the last year, the FRC has made visible strides towards tackling backlogs, embracing tools such as Constructive Engagement to drive faster, more proportionate outcomes. Timeliness is increasingly at the heart of the regulator’s agenda, with most cases now concluded within targeted timeframes.

Although the timing of the long-awaited transition to the Audit, Reporting and Governance Authority (“ARGA”) is still unclear, the FRC is pressing ahead with its End-to-End review, which will aim to ensure its enforcement process remains efficient, effective, timely and proportionate against the backdrop of a changing audit landscape.

At a time of significant change in the senior leadership of the FRC, we invite you to read on as we explore the key takeaways from this year’s enforcement activity and look ahead to what the next chapter might bring for the FRC and the wider UK audit landscape.