Our Financial Reporting and Corporate Governance Expert Groups contributed to our response to the FRC consultation on Auditing and ethical standards: implementation of the EU Audit Directive and Audit Regulation.
We noted our concern regarding the intention of the FRC to apply the requirements as set out in the Directives and Regulations as applicable to Public Interest Entities (PIEs), in part or in full, to listed entities as currently defined by the FRC. We noted that the Audit Directive and Regulation purposely leave outside of their scope companies quoted on growth markets, such as AIM or ISDX, and that it would be disproportionate for the UK to goldplate these rules. We supported that the additional requirements applicable to PIEs are not applied to other entities as this would impose significant additional regulation on growth companies.
