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The Financial Reporting Council (FRC) has announced that it will be moving ahead with its amendments to the Audit Enforcement Procedure (AEP) following a positive consultation period.
Under the proposed amendments, the board would be given the power to issue guidance to the case examiner which the case examiner would be obliged to take into account before exercising their Rule 5 powers.
The amendments also include a clarification that, where the case examiner refers a matter to the executive counsel under Rule 5(c), the executive counsel is to consider applying for an interim order but the Executive Counsel is not obliged to apply for an interim order.
Furthermore the new changes will see an extension of the period within which the Bboard can reconsider certain decisions under AEP, Rule 134, from 4 months to 6 months.
The consultation into the AEP was launched 2 April 2023 and received responses from all of the Big Four as well as BDO, Mazars and Grant Thornton.
The amended AEP, guidance to the case examiner and hearings guidance will come into force on 30 June 2023.
