FRC publishes new Audit Firm Governance Code
13 Apr, 2022
The Financial Reporting Council (FRC) has published a new Audit Firm Governance Code for the 'Big Four' audit firms and firms that audit FTSE-350 companies and significant numbers of public interest entities (PIEs).
The new Code, which was the subject of consultation in August 2021:
- separates the roles of the board chair and senior partner/chief executive;
- clarifies the role played by partnership boards in holding management to account;
- introduces criteria for board composition, reinforcing the position of independent non-executives within audit firms;
- sets out a clearer distinction between the role of Independent Non-Executives (INEs) and Audit Non-Executives (ANEs) for the largest audit firms; and
- more closely aligns with the UK Corporate Governance Code, emphasising the importance of long-term sustainability, culture and employee engagement.
The press release, new Code, and feedback statement to the consultation are available on the FRC website.
