Delegation Agreements
Published: 25 September 2023
2 minute read
Under Regulation 3(1) of SATCAR 2016 the FRC is the competent authority with ultimate responsibility for the public oversight of statutory auditors and for the performance and oversight of certain audit regulation tasks including:
- the approval and registration of statutory auditors;
- technical standards and standards of professional ethics and internal quality control of statutory auditors and audit work;
- continuing education of statutory auditors;
- monitoring (by means of inspections) of statutory auditors and audit work;
- investigation of statutory auditors and audit work; and
- imposing and enforcing sanctions.
Regulation 3 enables the FRC to delegate tasks to any Recognised Supervisory Body (RSB) and under regulation 3(12) the Secretary of State may give directions to the FRC in connection with the delegation of tasks to the RSBs. A Direction was given to the FRC on 17 June 2016 whereby the FRC was to delegate all tasks to the RSBs other than tasks related to the quality assurance of audits of public interest entities and tasks related to investigations and enforcement arising from these quality assurance reviews. Delegation Agreements between the FRC and each of the RSBs were put in place at that time on the basis of the 17 June 2016 Direction.
By a further Direction taking effect on 31 July 2022, the Direction of 17 June 2016 was revoked, so allowing the FRC greater powers to decide whether to delegate regulatory tasks to the RSBs and/or to reclaim tasks that it had previously delegated.
The Delegation Agreements have been amended by agreement with the RSBs to include changes required by the Direction of 31 July 2022. The main changes are to amend the definition of retained task and to include provisions whereby the FRC may reclaim tasks. There are different provisions depending on whether the FRC is reclaiming an individual case or cases, an entire regulatory task or a partial regulatory task defined by reference to a particular description of activity, a particular description of statutory auditor or a particular description of audited person.
The Registration Protocol sets out how information should be shared with, and how the RSBs should co-operate with, the FRC in the PIE Auditor Registration process. It is referenced in Appendix 1 of the Delegation Agreements.
| Name | Delegation Agreement FRC and ACCA |
|---|---|
| Publication date | 29 July 2022 |
| Type | Policy |
| Notes | The Delegation Agreement was entered into on 3 October 2016, and amended on 29 July 2022. This version is the amended version. |
| Format | PDF, 1.5 MB |
| Name | Delegation Agreement FRC and CAI |
| Publication date | 29 July 2022 |
| Type | Policy |
| Notes | The Delegation Agreement was entered into on 28 September 2016, and amended on 29 July 2022. This version is the amended version. |
| Format | PDF, 2.2 MB |
| Name | Delegation Agreement FRC and ICAEW |
| Publication date | 29 July 2022 |
| Type | Policy |
| Notes | The Delegation Agreement was entered into on 28 September 2016, and amended on 29 July 2022. This version is the amended version. |
| Format | PDF, 2.2 MB |
| Name | Delegation Agreement FRC and ICAS |
| Publication date | 29 July 2022 |
| Type | Policy |
| Notes | The Delegation Agreement was entered into on 28 September 2016, and amended on 29 July 2022. This version is the amended version. |
| Format | PDF, 1.5 MB |
| Name | Registration Protocol |
| Publication date | 1 October 2024 |
| Format | PDF, 68.8 KB |
Letters below relate to the change of name of the FRC’s Professional Oversight Team (POT), now called the Professional Bodies Supervision Team (PBS), effective from 1 June 2023.
| Name | Letter to ACCA - Update to Delegation Agreement (2023) |
|---|---|
| Publication date | 28 July 2023 |
| Type | Letter |
| Format | PDF, 120.0 KB |
| Name | Letter to ICAEW - Update to Delegation Agreement (2023) |
| Publication date | 28 July 2023 |
| Type | Letter |
| Format | PDF, 120.2 KB |
| Name | Letter to ICAI - Update to Delegation Agreement (2023) |
| Publication date | 28 July 2023 |
| Type | Letter |
| Format | PDF, 119.9 KB |
| Name | Letter to ICAS - Update to Delegation Agreement (2023) |
| Publication date | 28 July 2023 |
| Type | Letter |
| Format | PDF, 120.0 KB |