ACCA statement about the FRC's principles for operational separation of audit practices

Maggie McGhee, executive director – governance at ACCA comments on the recent announcement from the FRC (Financial Reporting Council).

‘ACCA is supportive of this development for the future of audit as it sets in motion a roadmap to change. The FRC has acted decisively in support of audit quality and the public interest.

‘ACCA maintains its support for multi-disciplinary firms, and today’s announcement is consistent with this aim. The FRC principles, if implemented fully, should address broader market concerns over audit independence and embed strong oversight over firms’ arrangements to deliver high quality audit. They should also bring about much greater transparency than at present over the financial fortunes of the audit business. 

‘Today, the FRC has made a very timely move, in the light of ongoing broader concerns with regard to audit quality with recent development in the EU. We expect other regulators will also be watching with interest, along with the European Commission which has audit reform firmly on its agenda.

‘We note that the announcement currently only covers the Big Four. ACCA awaits with interest to see if future proposals will include mid-tier firms and how this will affect them.’

- ends -

For media enquiries, contact:

Helen Thompson
E: helen.thompson@accaglobal.com
M: +44 (0)7725 498 654
Twitter @ACCANews

Maurice Richmond
E: maurice.richmond@accaglobal.com
M: +44 (0)7802 951 809

Twitter: @ACCANews
www.accaglobal.com

Notes to editors

About ACCA: ACCA (the Association of Chartered Certified Accountants) is the global body for professional accountants, offering business-relevant, first-choice qualifications to people of application, ability and ambition around the world who seek a rewarding career in accountancy, finance and management.

ACCA supports its 219,000 members and 527,000 students (including affiliates) in 179 regions and markets, helping them to develop successful careers in accounting and business, with the skills required by employers. ACCA works through a network of 110 offices and centres and 7,571 Approved Employers worldwide, and 328 approved learning providers who provide high standards of learning and development.

Through its public interest remit, ACCA promotes appropriate regulation of accounting and conducts relevant research to ensure accountancy continues to grow in reputation and influence.

ACCA has introduced major innovations to its flagship qualification to ensure its members and future members continue to be the most valued, up to date and sought-after accountancy professionals globally.

Founded in 1904, ACCA has consistently held unique core values: opportunity, diversity, innovation, integrity and accountability. More information is here: www.accaglobal.com

"ACCA maintains its support for multi-disciplinary firms, and today’s announcement is consistent with this aim. The FRC principles, if implemented fully, should address broader market concerns over audit independence and embed strong oversight over firms’ arrangements to deliver high quality audit. They should also bring about much greater transparency than at present over the financial fortunes of the audit business."

Maggie McGhee, executive director - governance - ACCA