FRC publishes new Audit Firm Governance Code

  • FRC Image

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 releasenew Code, and feedback statement to the consultation are available on the FRC website.

Correction list for hyphenation

These words serve as exceptions. Once entered, they are only hyphenated at the specified hyphenation points. Each word should be on a separate line.