Enforcement Procedures
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On 17 June 2016, the FRC became the 'competent authority' for audit in the UK under new legislation which came into force following the EU Audit Regulation and Directive, which have been retained in domestic UK Law.
This page contains links to the documents, policies and guidance which are supplemental to and support the FRC’s enforcement regime procedures under the Audit Enforcement Procedure (AEP), Accountancy Scheme, Actuarial Scheme and PIE Auditor Registration Regulations.
Enforcement process
A high-level overview of our enforcement process is set out below.
Case Examiner
Information sources include: horizon scanning, complaints, whistleblowing disclosures, other FRC teams, regulators, audit firms and professional bodies.
Decision to investigate
Taken by the FRC’s Board or Conduct Committee following a referral by the Case Examiner. Passed to Executive Counsel.
Investigation
Undertaken by Enforcement Division’s forensic accountants and lawyers. We have powers to require production of information and documents from audit firms, auditors and certain audited entities (AEP) and accountants and actuaries (Schemes). There is a general duty to cooperate under both regimes. Independent expert opinion on potential Misconduct/ breaches is sought in most cases.
Settlement
Settlement is encouraged under both the Schemes and AEP with significant discounts to fines typically available to respondents where early admissions are made. Under all regimes, settlements are approved by the Independent Reviewer.
Tests
If at any time the Executive Counsel decides that the tests have not been met, the case is closed.
Proposed allegations
Grounds for potential Misconduct/breaches set out in document that is served on audit firms, accountants and/or actuaries. Opportunity for respondents to make representations.
Enforcement action
Decision by Executive Counsel to pursue enforcement action where the relevant tests are met. Final allegations served on Respondents.
Determination
Breaches determined by the Executive Counsel can be accepted by the Respondent. Independent Reviewer approves (AEP). If breaches (AEP) or allegations of Misconduct (Schemes) are not accepted the case will be referred to the independent Tribunal. Tribunal will conduct full hearing and determine if breaches or Misconduct. Public will have access.
Sanctions
Sanctions for Misconduct/breaches imposed. Outcome published.
Audit Enforcement Procedure (AEP) - Supporting documents
| Name | Audit Enforcement Procedure |
|---|---|
| Publication date | 29 June 2023 |
| Type | Operating procedure |
| Format | PDF, 8.7 MB. View HTML version |
| Name | Guidance for the Case Examiner |
| Publication date | 29 June 2023 |
| Type | Guidance |
| Format | PDF, 1.3 MB. View HTML version |
| Name | Guidance on the opening of investigations (AEP) |
| Publication date | 4 January 2022 |
| Type | Guidance |
| Format | PDF, 1.2 MB. View HTML version |
| Name | Guidance on disclosure of Unused Material |
| Publication date | 4 January 2022 |
| Type | Guidance |
| Format | PDF, 93.3 KB. View HTML version |
| Name | Hearing Guidance |
| Publication date | 29 June 2023 |
| Type | Guidance |
| Format | PDF, 1.5 MB. View HTML version |
| Name | Sanctions Policy (AEP) |
| Publication date | 4 January 2022 |
| Format | PDF, 1.3 MB. View HTML version |
| Name | Publication Policy (AEP) |
| Publication date | 26 April 2022 |
| Format | PDF, 2.1 MB. View HTML version |
Accountancy Scheme Policies and Guidance - Supporting documents
| Name | Accountancy Scheme |
|---|---|
| Publication date | 24 February 2022 |
| Type | Scheme and regulation |
| Format | PDF, 228.9 KB. View HTML version |
| Name | Accountancy Regulations |
| Publication date | 30 March 2021 |
| Type | Scheme and regulation |
| Format | PDF, 147.3 KB. View HTML version |
| Name | Guidance on the commencement of investigations (Accountancy Scheme) |
| Publication date | 13 January 2021 |
| Type | Guidance |
| Format | PDF, 80.1 KB. View HTML version |
| Name | Accountancy Scheme Guidance on the delivery of Formal Complaints |
| Publication date | 1 April 2021 |
| Type | Guidance |
| Format | PDF, 271.2 KB. View HTML version |
| Name | Accountancy Scheme Sanctions Guidance |
| Publication date | 1 April 2021 |
| Type | Guidance |
| Format | PDF, 308.2 KB. View HTML version |
| Name | Publication Policy (Accountancy and Actuarial Schemes) |
| Publication date | 26 April 2022 |
| Type | Policy |
| Format | PDF, 2.0 MB. View HTML version |
| Name | Guidance on the disclosure of unused material (Accountancy and Actuarial Schemes) |
| Publication date | 1 February 2023 |
| Type | Guidance |
| Format | PDF, 1.3 MB. View HTML version |
Actuarial Scheme Policies and Guidance - Supporting documents
| Name | Actuarial Scheme |
|---|---|
| Publication date | 24 February 2022 |
| Type | Scheme and regulation |
| Format | PDF, 232.6 KB. View HTML version |
| Name | Actuarial Regulations |
| Publication date | 30 March 2021 |
| Type | Scheme and regulation |
| Format | PDF, 140.7 KB. View HTML version |
| Name | Guidance on the commencement of investigations (Actuarial Scheme) |
| Publication date | 21 February 2022 |
| Type | Guidance |
| Format | PDF, 79.2 KB. View HTML version |
| Name | Actuarial Scheme Guidance on the delivery of Formal Complaints |
| Publication date | 1 April 2021 |
| Type | Guidance |
| Format | PDF, 104.4 KB. View HTML version |
| Name | Actuarial Scheme Sanctions Guidance |
| Publication date | 1 April 2021 |
| Type | Guidance |
| Format | PDF, 285.3 KB. View HTML version |
| Name | Publication Policy (Accountancy and Actuarial Schemes) |
| Publication date | 26 April 2022 |
| Type | Policy |
| Format | PDF, 2.0 MB. View HTML version |
| Name | Guidance on the disclosure of unused material (Accountancy and Actuarial Schemes) |
| Publication date | 1 February 2023 |
| Type | Guidance |
| Format | PDF, 1.3 MB. View HTML version |
Policies and Guidance applicable to the AEP and both Schemes
| Name | Reaching determinations in respect of Proposed Settlement Agreements under the Accountancy Scheme, Actuarial Scheme and Audit Enforcement Procedure |
|---|---|
| Publication date | 4 January 2022 |
| Type | Policy |
| Format | PDF, 1.2 MB. View HTML version |
| Name | Board Guidance on Retention and Delegation of Investigation Decisions |
| Publication date | 4 January 2022 |
| Type | Guidance |
| Format | PDF, 1.3 MB. View HTML version |
The following documents also apply to the PIE Auditor Registration Regulations tribunal panels.
| Name | Convening Tribunals and Appeal Tribunals |
|---|---|
| Publication date | 21 September 2022 |
| Type | Guidance |
| Format | PDF, 2.3 MB. View HTML version |
| Name | Tribunal Panel Members Statement of Independence Guidance Notes |
| Publication date | 23 September 2022 |
| Type | Guidance |
| Format | PDF, 1.5 MB. View HTML version |
| Name | Tribunal Panel Members Fees and Expenses Policy (April 2024) |
| Publication date | 1 April 2024 |
| Type | Policy |
| Format | PDF, 126.7 KB. View HTML version |
| Name | Tribunal and Appeal Panel Terms of Appointment |
| Publication date | 31 October 2025 |
| Format | PDF, 262.6 KB. View HTML version |