Oversight of the Accountancy Profession
By agreement with the six chartered accountancy bodies, the FRC has a non-statutory role for oversight of the regulation by the professional accountancy bodies of their members beyond those that are statutory auditors.
The six chartered accountancy bodies are:
- Association of Chartered Certified Accountants (ACCA)
- Chartered Accountants Ireland (CAI)
- Chartered Institute of Management Accountants (CIMA)
- Chartered Institute of Public Finance and Accountancy (CIPFA)
- Institute of Chartered Accountants in England and Wales (ICAEW)
- Institute of Chartered Accountants of Scotland (ICAS)
Oversight in respect of all of these professional bodies, except CIMA, is governed by an exchange of letters from 2003 between the FRC and the Consultative Committee of Accountancy Bodies (CCAB). The FRC and the six chartered bodies are currently reviewing the non-statutory oversight arrangements. All of the six professional bodies are members of the Accountancy Scheme.
The FRC’s work to oversee the regulation of statutory auditors is also relevant to the oversight of the accountants more generally, as the regulatory systems often apply to both. In addition the FRC may review other regulation by the professional accountancy bodies of their members, for example:
- continuing professional development,
- ethical matters,
- professional conduct, and
- discipline, registration and monitoring,
including making recommendations on how these activities might be improved.
The bodies have agreed that they will consider the FRC recommendations carefully, and either
- implement them within a reasonable period, or
- give reasons in writing for not doing so.
In addition the FRC publishes annually Key Facts and Trends in the Accountancy Profession, which gives statistical data on the accountancy profession and provides context to the FRC’s work.