The shake up will see the FRC reduce the total number of graded file inspections of audits of corporates at the 12 largest audit firms with more details on the plan to be finalised this autumn.

The FRC is keen to stress that the new approach will not result in a watering down of the existing monitoring framework.

‘A robust and proportionate supervisory approach is essential to ensure a sustainable, well-functioning audit market, and audit profession,’ the FRC said.

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