FRC—Accountancy Scheme—factors considered when determining sanction
Produced in partnership with Thomas Daniel of 2 Bedford Row
FRC—Accountancy Scheme—factors considered when determining sanction

The following Corporate Crime practice note produced in partnership with Thomas Daniel of 2 Bedford Row provides comprehensive and up to date legal information covering:

  • FRC—Accountancy Scheme—factors considered when determining sanction
  • Whether the breach was intentional or reckless
  • Aggravating and mitigating factors
  • Level of cooperation
  • Adjustment for deterrence
  • Discount for admissions and or a settlement
  • Admissions
  • Settlement
  • Costs

FRC—Accountancy Scheme—factors considered when determining sanction

Forthcoming Change Alert: The UK government has announced that the Financial Reporting Council (FRC) will be replaced with a new regulator called the Audit, Reporting and Governance Authority. This new enhanced regulator will transform the audit and accounting sector in response to the comprehensive Independent Review led by Sir John Kingman. See News Analysis: Resetting the scope and purpose of audit regulation—ARGA and a new corporate auditing profession.

Following an Adverse Finding against a Member/Member Firm under the FRC’s Accountancy Scheme, the Disciplinary Tribunal must consider what sanction to impose. The available sanctions are contained within Appendix 1 to the Accountancy Scheme. The FRC also publishes specific sanctions guidance under the Accountancy Scheme which practitioners will find useful.

For information on the available sanctions which can be imposed by the Disciplinary Tribunal, see Practice Note: FRC—Accountancy Scheme—different types of sanction.

This Practice Note highlights some of the key factors which the Disciplinary Tribunal should consider when determining which sanction to impose. These factors are set out within the FRC Sanctions Guidance and should be considered alongside the nature, circumstances and seriousness of the breach. For information on how sanctions are reached, see Practice Note: FRC—Accountancy Scheme—sanctions.

Whether the breach was intentional or reckless

If the breach committed was intentional, this will be a key factor for the Disciplinary Tribunal when determining the appropriate

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