The UK Financial Reporting Council (FRC) has launched an initiative to build capabilities and quality management amongst small audit firm.
Through the new Scalebox programme, small firms can work with the FRC to develop their audit quality and systems of quality management and support the regulator in improving the proportionality of its oversight over them.
Firms participating in the programme can expect a reduction in certain formal inspection, supervision and registration requirements during 2025/26 and 2026/27, subject to their commitment and progress, the FRC said.
FRC Richard Moriarty stated: "Whilst in this programme, we will offer participating firms a more forbearing formal regulatory oversight and focus our resources instead on supporting their improvement. Accountability for improvement will, however, rest firmly with the audit firms themselves and a condition of remaining in the programme is that we see progress over time."
