The UK Financial Reporting Council (FRC) has released its 2016/2017 annual report highlighting the regulators projects and actions taken.
The FRC had intended to establish its role as a Competent Authority, which it achieved in June 2016, as well as establishing the regulatory framework for the role.
The established Audit Quality Review found that 81% of FTSE 350 audits required no more than limited improvements, the FRC aims for this to be 90% by 2019. Another key priority for the same year was to influence the development of IFRS which was achieved by endorsing standards within the EU such as IFRS 15 and IFRS 9.
The FRC also published its report Corporate Culture and the Role of The Board, to revise technical actuarial standards and to make improvements to resolve enforcement cases more quickly. Changes in the external environment led to the creation of Stakeholder Panels to debate corporate governance and review the consequences of exiting the EU.
FRC chairman Win Bischoff said: “Public confidence in business depends not just on regulations and codes but on companies being held to account if they transgress. This year the FRC has concluded a number of substantial audit enforcement cases, and improved the speed of enforcement action. However, there are gaps in our enforcement powers, particularly in relation to our ability to take action against directors who are not accountants.”