We support the FRC in wanting to update their audit enforcement procedure based on lessons learned over the past three to five years.
The UK Shareholders’ Association has submitted a response to the FRC’s consultation on proposed updates to its routes to resolution in the Audit Enforcement Procedure.
We recognise our limitations of any detailed knowledge on the application of the FRC’s AEP and have based our response on the published outcomes of any investigations into audits. It has been noticeable that the FRC is constructive in its audit enforcement and that audit quality has not declined over recent years. However, while the audit process in the UK is reasonably OK and not broken, a number of us believe there is still a lot of room for improvement.
We fully support the changes proposed, which should be in place by the middle of this year. We will keep an eye on the application of the AEP over the coming years up to the next review in about three years’ time
