However, only 53% of enforcement cases were concluded within the regulator’s two-year target, the Financial Reporting Council (FRC) annual report revealed.

The last 12 months did see settlement of a substantial audit investigation surrounding KPMG and Carillion, which resulted in £25m worth of sanctions and individual partner misconduct warnings.

Over 2023-24, the FRC spent £4.7m on enforcement cases, down from £5.1m, out of a total budget of £66.3m. The bulk of expenditure was £56.2m for operating costs, primarily for £48.1m on staff costs for 464 employees, up from 418 in 2022-23.

The FRC also cut costs over the year including legal and professional fees by £900,000, and reduced IT costs by £700,000. However, a loss of £1.18m was still reported with £8.8m in debtors. It does have total reserves of £14.8m down from £16.0m the previous year.

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