Regulating a Cultural Shift in Audit
by Sarah Rapson
Executive Director of Supervision, UK Financial Reporting Council (FRC)
May 15, 2022
Compendium
by Sarah Rapson
Executive Director of Supervision, UK Financial Reporting Council (FRC)
May 15, 2022
Compendium
An individual audit is, in effect, a snapshot. Once taken, it is frozen in time. Yet the audit profession is in the early stages of significant and essential change, as it moves towards a culture-based approach. The Financial Reporting Council’s regulatory approach is also adapting to take an assertive supervision and improvement approach to culture, using our ‘four faces’ framework, and this will continue to evolve as our knowledge and maturity increase.
Two recent reviews of the UK audit market (the 2018 Kingman Review and the 2019 Brydon Review), prompted by large corporate failures, triggered substantial reform, to improve the quality and effectiveness of audit, increase the chances of preventing unnecessary corporate failures and, in so doing, restore trust in the audit profession.
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