Audit Firm Governance Code Consultation Launched

T

he UK’s Financial Reporting Council (FRC) has launched a consultation on proposals to update and strengthen the Audit Firm Governance Code.

The Code applies to the Big Four and to other firms which audit FTSE 350 companies. In the future it will also apply to firms that audit significant numbers of other types of public interest entities.

The proposals aim to strengthen the Code in key areas of accountability and firm resilience. The revisions intend to enhance and clarify the role played by partnership boards in holding management to account and separate the roles of board chair and senior partner/chief executive.

The consultation is available here and is open until 18 November 2021.