FRC publishes its 3-year Plan and Budget for 2023-26

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31 Mar, 2023

The Financial Reporting Council (FRC) has published its 3-year plan and budget for 2023-2026.

The plan reflects the delay of anticipated legislation to create the Audit, Reporting and Governance Authority (ARGA), which has had an impact on the associated increase in capacity, cost and headcount previously expected to occur in 2023.  

The plan details how each of the FRC's four divisions (Regulatory Standards, Supervision, Enforcement and Corporate Services), intend to organise their work and the associated deliverables across the three year period of the plan.  It also sets out the FRC's strategic priorities and deliverables for 2023/24 in these areas as follows:

Regulatory Standards

  • Development and maintenance of standards and codes, including completion of the periodic review of FRS 102, adoption of a revised International Standard on Auditing (ISA) (UK) 500 Audit Evidence, post-implementation reviews of UK auditing standards, in particular ISA (UK) 540 Accounting Estimates and Related Disclosures, review of the UK Corporate Governance Code, and post-implementation review and revision of technical actuarial standards (TAS).
  • International influencing of auditing, assurance and ethical standards, and significant contribution to non-financial reporting developments in the UK and internationally (especially sustainability reporting).
  • Policy support for ARGA’s local audit systems leader role.
  • Activities focused on improvements and innovation to support high-quality reporting and audit including Lab publications and use of the new ‘Audit Sandbox’.
  • Promoting the use of technology throughout its policy areas, through digital reporting and the implications for data and data governance, and commencing the Company and Organisational Data Explorer (CODEx) project.


  • Delivering a full programme of high-quality AQR inspections, CRR reviews and the FRC’s statutory professional oversight functions and publish associated reporting, including thematic reviews.
  • Increase activities focused on improvements and innovation to support improved audit quality and resilience in the market, including implementation of the FRC Scalebox.
  • Approval and registration of audit firms and responsible individuals who undertake Public Interest Entity (PIE) audit work.
  • Assessing the effectiveness of the firms’ implementation of new auditing and quality management standards.
  • Developing a supervisory approach for audit committees.
  • Developing the supervisory oversight strategy for the professional bodies.
  • Developing the local audit system leader role and team in shadow form ahead of ARGA implementation.
  • Reporting on implementation of operational separation.
  • Developing market monitoring function.
  • Delivering projects on developing AQR and Improving the Quality of Auditor Education and Training.


  • Fair, robust, and timely case closures, or conclusion through focus of investigations, prioritisation, training, and recruitment.
  • Upskilling and training to respond to changes in AEP from January 2022 and to intended changes to procedural published guidance.
  • Collaboration with the Department for Business and Trade (DBT) on planned legislative change to reach the best achievable outcomes as they pertain to enforcement and the FRC’s stated purpose and objectives.
  • Upskilling to enable full implementation of future powers arising from proposed regulatory reform in 2024 onwards.
  • Publication of the Annual Enforcement Review, delivering transparency and driving improved behaviours through messaging case outcomes.

Corporate services

  • Developing a statutory funding model for ARGA.
  • Developing and implementing an integrated information management strategy, including a medium-term IT strategy and enhanced cybersecurity risk management.
  • Data analytics and reporting, economic advice and impact assessment – supporting enhanced market monitoring, the implementation of the FRC position paper, and transition to ARGA.
  • Appropriate workforce planning, aligned with its business planning cycle and designed to incentivise, reward, and retain key skills and accommodate any re-location plans.
  • Strengthening its support infrastructure, including in finance and procurement systems, internal controls, and IT.
  • Enhancing the level of assurance activity, against internal policies and controls.
  • Legal support for all FRC activities and legal and operational support for the UKEB.
  • Embedding its contingency planning processes and testing regime. 

The 3-year plan also covers other areas such as risks and challenges and KPIs. The FRC also sets out its budget for 2023/24 for expenditure and funding.

The press release and 3-year Plan and Budget 2023-26 are available from the FRC website.

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