The Financial Reporting Council (FRC) has issued a report reviewing the work of big audit firms in introducing elements of 2010’s Audit Firm Governance Code, and concluded that UK firms are ahead of their international counterparts.
But while the eight big audit firms have gone some way to introducing independent non-executive directors to their local UK partnership models, the FRC says more could be done at the network level.
The report suggests that the principle of external challenge should be adopted in the international network organisations as well as at national level.
“It is also important as the firms grow their consultancy businesses that this challenge remains focused on the audit practice as well as across the firm as a whole,” the FRC said.
