Audit Committees
Published: 24 September 2023
1 minute read
The FRC has produced guidance relating to Audit Committees, and published a Standard for Audit Committees relating to the external audit.
Audit Committees should also familiarise themselves with the UK Corporate Governance Code.
Audit Committee Standard
The FRC issued the first Audit Committee Minimum Standard (the Minimum Standard) in May 2023. Companies applying the UK Corporate Governance Code 2024 must follow the Minimum Standard and report on matters in the Minimum Standard, on a comply or explain basis. The 2024 UK Corporate Governance Code applies to all companies listed in the commercial companies category or the closed-ended investment funds category, whether incorporated in the UK or elsewhere. It applies from financial years beginning on or after 1 January 2025. Audit Committees in other companies may find it beneficial to follow the Minimum Standard voluntarily.
| Name | Audit Committees and the External Audit: Minimum Standard (May 2023) |
|---|---|
| Publication date | 22 May 2023 |
| Type | Standard |
| Format | PDF, 2.5 MB |
| Name | Feedback Statement and Impact Assessment - Audit Committee Minimum Standard (May 2023) |
| Publication date | 22 May 2023 |
| Format | PDF, 1.4 MB |
Guidance
Guidance on Audit Committees
The guidance is intended to assist company boards when implementing Section 4 of the UK Corporate Governance Code dealing with audit committees, and to assist directors serving on audit committees in carrying out their role.
Best practice guide to audit tendering
The guide is intended to support Audit Committees in running an effective tender process for their external auditor.
Best practice guide to audit tendering (updated February 2017)
Audit quality – practice aid for Audit Committees
The practice aid is intended to assist Audit Committees in assessing the effectiveness of the external audit.
Audit quality – practice aid for Audit Committees (updated December 2019)
Research
| Name | FRC/YouGov: Audit Committee Chairs’ views on, and approach to, audit quality (2022) |
|---|---|
| Publication date | 26 January 2022 |
| Type | Report |
| Format | PDF, 1.7 MB |
| Name | FRC/YouGov: Audit Committee Chairs’ views on, and approach to, audit quality (2020) |
| Publication date | 2 December 2020 |
| Type | Report |
| Format | PDF, 899.8 KB |