The Financial Reporting Council (FRC) says its Annual Report and Accounts for 2023/24 highlights the organisation’s proactive approach to using its regulatory powers to drive improvements in audit quality and corporate reporting.

Richard Moriarty, CEO, said: “This year’s report demonstrates the FRC’s focus on smart, proportionate and targeted regulation that balances high standards with supporting UK economic growth and competitiveness across our broad remit and stakeholder ecosystem.”

He pointed to the FRC proactive approach and increased stakeholder engagement, which contribute to advances in shaping proportionate corporate reporting and governance.

Of note are the FRC’s completion of a major consultation on the UK Corporate Governance Code, engaging with more than 5,000 stakeholders to ensure proportionate and targeted regulation. The FRC also launched a review of the UK Stewardship Code to drive the right stewardship behaviours and completed the important periodic update of UK GAAP standards.

On the audit front, the annual report highlights support for smaller audit firms in taking on larger and more complex clients. It is also helping to tackle the backlog in local audit and has established its presence in Birmingham through its new office, supporting regional growth and accessing a new talent pool outside London and the South East.

Dr Nigel Sleigh-Johnson, ICAEW Director of Audit and Corporate Reporting, said: “With the establishment of ARGA, equipped with new powers, now firmly back on the policy-making agenda, the FRC’s annual report is a timely reminder of improvements already implemented, the importance of a continued focus on proportionate regulation, and new challenges ahead, not least around  the creation of a new regime for sustainability reporting and assurance”.