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Audit and Corporate Governance Reform Bill Deliberations, 2025 Timeline

FRC and the Department for Business and Trade.

Event DateTypeTitleSummary
3-Feb-25ConsultationSME Audit Market Study – Phase 1Invitation to comment on challenges and remedies in the SME audit market.
Emerging findings published 17 Jul 2025 with further consultation to 17 Oct 2025; final report pending.
25-Feb-25GuidanceGoing Concern Guidance – outcome to 2024 consultationFollowing a 2024 consultation, the FRC issued updated Going Concern Guidance consolidating requirements and addressing solvency/liquidity risk disclosures; a feedback statement released.
5-Mar-25Secondary legislationCompanies (Directors’ Remuneration and Audit) (Amendment) Regulations 2025Regulations remove overlapping EU‑origin disclosures, clarify certain audit‑regulator powers re: overseas audits, and create a discretionary exemption to the non‑audit services cap for PIE tenders (with FRC transparency/guidance).
22-May-25Engagement (Roundtables)Future of Audit Supervision StrategyInvitation to June roundtable sessions with auditors and audit committee chairs to inform FRC’s evolving supervisory approach – proportionate to firm size and risk.
29-May-25ConsultationISSA (UK) 5000 – sustainability assurance standardProposal for a UK adoption of IAASB ISSA 5000 for voluntary use by UK assurance providers; aimed at consistent, high‑quality sustainability assurance.
3-Jun-25Consultation Outcome UK Stewardship Code 2026 – consultation outcomeFRC issued the UK Stewardship Code 2026 with streamlined principles/prompts, tailored service‑provider principles, and guidance to reduce boilerplate and focus on effective stewardship.
25-Jun-25ConsultationDeveloping an oversight regime for assurance of sustainability disclosuresProposes a voluntary registration and oversight regime for sustainability assurance providers, to be operated by ARGA (once established), with proportionate monitoring and enforcement.
25-Jun-25ConsultationExposure drafts of UK Sustainability Reporting Standards (UK SRS S1 & S2)Consultation on adopting ISSB‑based UK SRS with limited UK‑specific amendments; signals potential FCA adoption for listed companies and later consultation on Companies Act scope.
14-Jul-25Consultation on Accounting StandardDraft 2026 Taxonomy Suite – consultationProposed updates to UK IFRS/FRS taxonomies including IFRS 7 amendments, revenue disaggregation dimensions, audit‑report disclosures, and significant Charities taxonomy revisions; final planned Nov 2025.
17-Jul-25Consultation on Accounting StandardFRED 87 – Draft amendments to FRS 102 (Adapted formats)Proposes targeted amendments to adapted balance sheet/P&L formats in FRS 102; entities not using adapted formats unaffected.
17-Jul-25GuidancePractice Note – audits of smaller/fewer complex entitiesDraft Practice Note to help auditors apply ISAs (UK) proportionately to smaller/fewer complex audits; part of the SME campaign and informed by SME market study.
17-Jul-25Consultation Proposed amendments to PIE Auditor Registration RegulationsProposes clarifications and flexibility to reduce administrative burden and address restructuring/private‑capital ownership scenarios; intended effective date Jan 2026.
17-Jul-25FindingsSME Audit Market Study – emerging findingsEmerging findings published with proposed remedies and questions; FRC invited responses to refine interventions to improve SME audit market effectiveness.
21-Jul-25Ministerial letterLetter to Business & Trade Committee – Audit Reform Bill pre‑leg scrutiny delayedBusiness Minister confirmed the draft Audit Reform and Corporate Governance Bill would not be put forward for pre‑legislative scrutiny in the current session; further stakeholder engagement planned.
30-Jul-25Event invitationWebinar – Practice Note for SME/fewer complex auditsWebinar to explain the draft Practice Note and gather feedback; part of consultation engagement.
13-Aug-25Engagement (Discussion paper)Future of Audit Supervision Strategy – phase 2 discussion paperSecond‑phase discussion paper and engagement on evolving, proportionate firm supervision centred on system of quality management.
4-Sep-25Ministerial letterLetter to Business & Trade Committee setting approach to crucial areasThe Government confirms direction of travel in Public Interest Entity (PIE) definition, Regulator transformation from the Financial Reporting Council (FRC) to the Corporate Reporting Authority (CRA) and objectives of trust, accountability, and resilience in audit and reporting.
11-Sep-25InitiativeProgramme to build capability and support growth by small UK audit firmsThe FRC launches the “Scalebox Programme” to help small audit firms build capability for the PIE audit market through bespoke support and reduced regulatory oversight during 2025-27.