The regulator will also focus on provisions and contingent liabilities, impairment of assets, revenue and group audits.

The regulator said these are areas of investor and public concern and have been identified as areas of heightened risk areas giving rise to recurring findings in audit inspections. These issues also come up regularly in FRC enforcement cases, stressing the importance of improving the quality of audit in these areas.

There are also a number of industry sectors where the FRC plans to focus its inspection reviews. These include travel, hospitality and leisure; retail; construction and utilities.