Podcast: In Conversation on the FRC’s new approach to audit supervision
News types: Generic Announcement, Policies and Responsibilities, Publications, Statements
Published: 2 March 2021
In this episode, Kate O’Neill, the FRC’s Director of Stakeholder Engagement and Corporate Affairs, sits down with members of the FRC’s new Supervision division to discuss why challenge of management and a challenge culture is critical to high quality audit.
Kate is joined by Jo Morgan (Audit Firm Supervision), Helen Gale (Audit Market Supervision) and Alex Jennings (Audit Quality Review) to discuss the FRC’s new approach to audit supervision. Further information about the FRC’s AQR, AFS and AMS teams is below.
Audit Quality Review
AQR is made up of suitably qualified and skilled staff with previous audit experience, including sector and IT specialists. It undertakes inspections of PIE, Crown Dependency and Major Local Audits carried out by the PIE audit firms. It also performs full scope inspections of the National Audit Office and certain Crown Dependency audit firms.
Audit Firm Supervision
AFS is responsible for the FRC’s overall supervision of the firms, drawing together the results of work undertaken by the Audit Quality Review and Audit Market Supervision teams as well as other areas of the FRC. It will lead on the FRC’s work on registration of PIE auditors and audit firms after the FRC takes over decision-making, planned for 2022.
Audit Market Supervision
AMS takes a cross-market approach to areas of importance to audit quality and firm resilience, including the firm-wide inspection work to ensure compliance with the International Standard on Quality Control (ISQC 1). Staff have a range of backgrounds (governance, risk management, internal audit, culture, regulation, and audit) representing the broad subject matter within the team’s remit.