Our Financial Reporting Expert Group contributed to our response to the FRC's consultation on its strategy for the 2018 – 2021 period, as well as its draft budget and levy proposals for the 2018 – 2019 financial year.
Overall, we broadly agreed with the FRC’s strategic priorities for the next three years. However, with respect to the Promoting corporate governance and investor stewardship with a long term focus strategic priority, we encouraged the FRC to recognise in its strategic priorities how the QCA Corporate Governance Code fits into any work with smaller quoted companies in this area.
Regarding its strategic priorities, we suggested that the FRC should also focus on encouraging the use of computer assisted audit techniques through ISA (UK) and ensuring that the UK maintains its status as an attractive location to invest through the monitoring of corporate reporting requirements outside the UK.
We welcomed the proposals to reduce the minimum fee and the levy rates for levy bands one to five by 2.5% for organisations within the FRC’s preparers levy funding group.
As the UK prepares to leave the European Union, we encouraged the FRC to display a greater degree of thought leadership with regards to improving accounting and auditing standards, so that future international accounting standards are developed in the interests of UK issuers.
