Four accountancy firms鈥擯wC, KPMG, Deloitte, and EY鈥攈ave completed a three-year transition to bolster governance and audit quality, as per the Financial Reporting Council (FRC).聽聽

This is aimed at enhancing the quality of audits. 

During the transition, the firms established independent audit boards, chaired by non-executive auditors, to oversee operations.  

They have increased transparency regarding financial interactions between their audit and non-audit services and are said to have instilled firm-level accountability for the separation’s execution.  

These measures are part of an effort to cultivate audit-specific cultures that emphasise challenge, openness, and professional scepticism. 

The FRC confirmed that all four firms met the implementation deadline for the principles of operational separation.  

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile 鈥 free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

The Council will now begin publishing annual assessments of the firms’ compliance with these principles.  

Operational separation, initiated in 2020, required the firms to voluntarily segregate their UK audit and non-audit practices to prioritise quality audit delivery for the public interest. 

The ongoing monitoring will be done alongside supervisory actions to further enhance trust in UK businesses.  

This month, the FRC plans to release minor revisions to the operational separation principles and update the Audit Firm Governance Code accordingly. 

FRC Supervision executive director Sarah Rapson said: 鈥淭he FRC is pleased with the spirit in which the firms have embraced operational separation and the progress achieved to date. 

鈥淪ince 2020, there have been notable improvements in audit quality at the Big Four which has been underpinned by wider regulatory improvements.鈥 

Earlier in the month, the FRC noted an increase in the number of students pursuing the ACA qualification, with a reported 8.5% rise to 24,348 in the UK and Republic of Ireland.