The FRC is aware that smaller businesses or those who are new to the PIE sector frequently struggle to meet regulatory requirements.  As a result it has launched the Scalebox initiative to support firms in developing and maintaining audit quality as they grow or start out in the PIE audit market.  

A separate, independent team within the FRC's Audit Firm Supervision (AFS) division will oversee the Scalebox.  The team will focus its work in areas where there are common findings, where requirements are changing, or where firms need to focus as they grow.

The Scalebox may undertake activities such as:

• reviewing aspects of completed audits to provide feedback on good practice and areas for improvement.
• reviewing a particular element of a firm's system of quality control, including specific areas of audit methodology and audit approach.
• reviewing a firm's actual or proposed governance processes if it has chosen or is planning to adopt the Audit Firm Governance Code.

All firms currently in Tier 2 and Tier 3 for FRC Supervision purposes are eligible to join the Scalebox as well as firms intending to enter the PIE audit market.

At the same time the FRC has published the latest report in its 'What Makes a Good' series' which focuses on smaller PIE audit firms.  The publication includes an overview of what the FRC expects firms to focus on to ensure that their audit practice is capable of performing high quality audits and a guide to how the FRC regulates PIE audit firms.  

A press release, more information about the Scalebox initiative, the 'What makes a good smaller PIE audit firm' publication and a podcast on supervising audit quality are available on the FRC website.