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RAPPORT

Audit Firm Governance Code

Revised 2016- Financial Reporting Council

Audit is a statutory function in which there is considerable public interest. The UK Audit Firm Governance Code (the Code) is intended to enhance trust and confidence in the value of audit amongst the public and particularly investors. The Code applies to firms auditing 20 or more listed companies.

This version of the Code was issued in July 2016 and is applicable for financial years beginning on or after 1 September 2016.

Purpose

The Code provides a benchmark of good governance practice against which firms which audit listed

companies can report. Its principal objectives are:

  • To promote audit quality.
  • To help the firm secure its reputation more broadly, including its non-audit businesses.
  • To reduce the risk of firm failure, which in relation to the largest firms would be of systemic significance.
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