Guidance for audit committees

The responsibilities of the audit committee include reviewing the company’s internal financial controls, monitoring and reviewing the effectiveness of the company’s internal audit function and reviewing and monitoring the effectiveness of the external audit process. The Financial Reporting Council has published guidance to assist company boards when implementing the sections of the UK Corporate Governance Code dealing with audit committees and to assist directors serving on audit committees in carrying out their role.

Guidance

• FRC: Guidance on the Going Concern Basis of Accounting and Related Reporting (including Solvency and Liquidity Risks) – Consultation – August 2024
• FRC: Corporate Governance Code 2024 Guidance published – January 2024
• FRC: Audit committee chairs’ views on, and approach to, environmental, social and corporate governance (ESG) - June 2023
• FRC: Audit Committees and the External Audit: Minimum Standard  - May 2023
• FRC: Professional Judgement Guidance for Auditors - June 2022
• FRC: Consultation on Firm-level Audit Quality Indicators – June 2022
• FRC: Audit Committee Chairs’ views on, and approach to, audit quality – January 2022
• Terms of reference for the Risk Committee – June 2020
• ICSA Terms of reference for the audit committee – January 2020
• FRC Audit Quality Practice Aid on audit quality for audit committees – December 2019
• Risk Coalition’s principles-based guidance for board risk committees and risk functions in UK financial services sector – December 2019
• IOSCO Report on good practices for audit committees in supporting audit quality – January 2019
• IOSCO Consultation on good practices for audit committees in supporting audit quality – April 2018
• FRC Notes on best practice in relation to audit tenders – February 2017
• Investment Association Guidelines on Audit Tenders – January 2017
• FRC Guidance on Audit Committees – June 2016
• ecoDa Guidance for audit committees – June 2016
• ISA 700 (UK and Ireland) - The independent auditor’s report on financial statements – June 2016
• ISA 570 (UK and Ireland) Going concern – June 2016
• ISA 260 (UK and Ireland) Communication with those charged with governance – June 2016
• QCA Audit Committee Guide for Small and Mid-size Quoted Companies 2014 – November 2014
• Institutional Investor Committee The audit tendering process – The expectations of UK institutional investors, May 2014
• ACCA Enhancing the value of the audit committee report – March 2014

Financial Reporting Council and DBT (formerly BEIS and BIS) reviews/consultations and other matters

• FRC: Conversation starters to boost investor- audit committee engagement – April 2023
• FRC: Consultation on Audit Committee Standard – November 2022
• BEIS Market study on statutory audit services - Initial consultation on recommendations by the CMA – July 2019
• FRC Consultation on enhanced Ethical and Auditing Standards – July 2019
• BEIS Committee The future of audit – Report – April 2019
• FRC Consultation on revisions to International Standard on Auditing (ISA) (UK) 570 - Going Concern – March 2019
• FRC Position paper on 2016 Ethical and Auditing Standards – March 2019
• BEIS Independent review of audit - Terms of reference – February 2019
• FRC Feedback Statement and Impact Assessment on proposed revisions to the Ethical Standard, Auditing Standards, UK Corporate Governance Code and Guidance on Audit Committees – April 2016
• FRC Audit quality thematic review – January 2016
• FRC Enhancing Confidence in Audit: Proposed Revisions to the Ethical Standards, UK Corporate Governance Code and Guidance on Audit Committees – September 2015
• Financial Reporting Lab Reporting of audit committees – how companies responded to investor needs identified by the Lab; experience of the first year on audit committee reporting – May 2015
• FRC Consultation on auditing and ethical standards – Implementation of the EU Audit Directive and Audit Regulation – December 2014
• BIS Auditor regulation – Discussion document on the implications of the EU and wider reforms – December 2014
• FRC Statement on transparency of Audit Quality Review findings – November 2014
• FRC Audit Quality Thematic Review: Fraud risks and laws and regulations – January 2014
• FRC Audit Quality Thematic Review: Materiality – December 2013
• Financial Reporting Lab Project report on the reporting of audit committees – October 2013
• Audit Quality Forum Reliability Matters - Reliability and the central role of the auditor – June 2013
• Financial Reporting Lab Opportunity for companies to test Audit Committee Reports – December 2012

Review of the audit market by the Competition & Markets Authority (formerly Competition Commission)

• BEIS Market study on statutory audit services - Initial consultation on recommendations by the CMA – July 2019
• CMA Statutory Audit Services Market Study – Final Report – April 2019
• CMA Statutory Audit Services Market Study – Update paper – December 2018
• The Statutory Audit Services for Large Companies Market Investigation (Mandatory Use of Competitive Tender Processes and Audit Committee Responsibilities) Order 2014 – September 2014
• Explanatory note - The Statutory Audit Services for Large Companies Market Investigation (Mandatory Use of Competitive Tender Processes and Audit Committee Responsibilities) Order 2014 – September 2014
• The Statutory Audit Services for Large Companies Market Investigation (Mandatory Use of Competitive Tender Processes and Audit Committee Responsibilities) Order 2014: Formal consultation – July 2014
• Draft explanatory notes to the Statutory Audit Services for Large Companies Market Investigation (Mandatory Use of Competitive Tender Processes and Audit Committee Responsibilities) Order 2014 – July 2014
• FRC letter to Competition Commission in relation to remedies contained in final report of Competition Commission’s report into statutory audit services – January 2014
• Competition Commission Final report in relation to its market investigation into the supply of statutory audit services in the UK – October 2013
• Competition Commission Provisional decision on remedies in relation to its market investigation into the supply of statutory audit services – July 2013
• Competition Commission Notice of a further possible remedy in relation to its market investigation into the supply of statutory audit services in the UK – June 2013
• Competition Commission Notice of possible remedies in relation to its market investigation into the supply of statutory audit services in the UK – July 2013
• Competition Commission Provisional findings in relation to its market investigation into the supply of statutory audit services in the UK – February 2013
• OFT Referral of the supply of statutory audit services to large companies in the UK to the Competition Commission – October 2011