This includes statutory oversight of the audit regulatory work performed by the Recognised Supervisory Bodies (RSBs) and Recognised Qualifying Bodies (RQBs) in relation to corporate and local audit.

Following a review of the RSBs’ enforcement processes, the FRC recommended that ICAEW take further steps to document its key enforcement processes. The regulator said this documentation was necessary for the mitigation of the risk of loss of knowledge. As a result, ICAEW is developing a handbook that will include the necessary processes.

The FRC also flagged issues with continuing professional development (CPD) oversight by the RSBs to ensure adequate review of CPD compliance for all groups of auditors, including all statutory auditors at audit firms that audit the largest public entities. Further discussions are planned through a working group to ensure that the potential gap is rectified.