While government plans for the future shape of the audit profession and the new regulator have still not been published, the FRC has set out a three-year plan involving a significant increase in funding and staff to allow it to transform into the new body and also expand its remit.

The plan considers carefully how, and when, the FRC will need to increase its capacity to adapt to new powers and responsibilities. It also comprises a detailed breakdown of the FRC’s intended expenditure for 2022-23, alongside a summary of expected costs and headcount for the following two years.

Overall, the combined budgeted cost of the FRC and the UK Endorsement Board will increase by 16.1% to £59.8m (2021/22: £51.5m). The annual budget is set to increase to nearly £70m by 2024-25, reflecting the new cost framework for the ARGA.