The UK Financial Reporting Council (FRC) has announced revisions to its audit enforcement framework.
It explained in a statement: “The updated framework moves beyond a binary model of investigations or private constructive engagement to introduce a graduated range of responses.”
Under the revised framework, the FRC will have three options for resolving issues in a proportionate and timely manner.
Resolution options:
- Published Constructive Engagement - combining remediation with public transparency to support improvement and learning for the audit market
- Accelerated Procedure - enabling faster resolution where sufficient evidence is available
- Early Admissions Process - encouraging firms to cooperate with the FRC earlier in admitting and identifying breaches of requirements