More news for audit professionals: March 2026

Catch up on the latest audit news from across the profession from the FRC, Accountancy Europe and much more.

FRC releases an 'In Conversation' podcast on the Audit Enforcement Procedure

Kate O'Neill, Director of Stakeholder Engagement and Corporate Affairs, was joined on the podcast by Anthony Barrett, Executive Director of Supervision, and Jamie Symington, Deputy Executive Counsel.

They discussed the progress of the FRC's consultation on proposed amendments to the Audit Enforcement Procedure, which launched in October 2025 as part of its end-to-end review of its enforcement processes, and what we’ve heard so far from stakeholders.

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Accountancy Europe publishes insights, trends and resources on Private Equity in accountancy and audit sector

The piece sets out that third-party ownership in audit and accountancy practices is on the rise across Europe. A common feature of this is the involvement of Private Equity models. The trend comes with a range of opportunities, with clear potential for growth and innovation, as well as risks for firms involved. There are questions being raised about potential impact on independence and audit quality among other things. 

Potential opportunities	Potential risks
Investment in innovation and technology Consolidation, efficiency and synergies Talent retention and development Enhanced brand visibility and market reach Access to broader business networks	Regulatory risk and early engagement Quality risk Ethical and independence concerns Cultural misalignment Engaging external advice and expertise Impact on the audit market Exit risk strategy

Key messages provided by Accountancy Europe include:

• Private Equity investment in the sector has grown significantly over the past decade.
• An ‘inflection point’ occurred in 2023, when the number of Private Equity transactions surged to over 100. (That's almost three times the previous year’s figure.)
• Around 60% of Private Equity transactions involve primarily local accounting, tax, and advisory firms.
• Around 40% of the deals are in firms that provide audit and assurance services.
• Typically, when audit services are involved, the Private Equity involvement brings about a degree of legal restructure to split off audit services into a distinct entity.

The analysis gives a helpful overview of how private equity investment is affecting the profession across Europe. It seems clear that all parties involved must respect need for audit quality, as we mentioned in our previous comment on the matter. 

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FRC sets out its schedule for 2026 consultation windows

In 2026, the FRC will issue consultations in:

• March
• June
• September
• December

Consultations will be published on the FRC’s website. Firms are encouraged to sign up to the FRC's news alerts to make sure they get the opportunity to respond to the consultations arising throughout the year.

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Richard Moriarty, FRC CEO, sets out the FRC’s priorities for the year ahead

The announcement reconfirmed that the FRC's core purpose remains to serve the public interest and support UK economic growth by upholding high standards of corporate governance, corporate reporting, audit and actuarial work. In 2026, the FRC will continue to pursue their five priorities for supporting economic growth:

• Underpinning investor confidence in UK plc. 
• Reducing unnecessary burdens on business while maintaining high standards. 
• Developing deep insight into the markets we oversee so our regulation is based on evidence and expertise. 
• Identifying future trends and innovations to support the health of the markets we oversee. 
• Supporting the skills and resilience of the professions we regulate.

As part of this work, the FRC aims to make significant progress on the Future of Audit Supervision Strategy and their End-to-End Enforcement Review, working closely with stakeholders to develop a more proportionate, system-focused approach as we modernise our audit regulation activity.  

They will also publish final guidance to help auditors deliver work scaled appropriately to the complexity of small and medium-sized enterprises and will work with ICAS and the other Recognised Supervisory Bodies to ensure a consistent, proportionate approach to regulation of that sector of the audit market.  

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FRC publishes updated strategic report guidance 

The guidance was developed to support all UK entities that prepare strategic reports under company law and is intended to help entities address their reporting obligations in a way that is practical, proportionate and supports high-quality reporting. The guidance will be equally relevant to audit teams working on clients that prepare strategic reports.

The guidance will support the preparation, and consideration, of disclosures that are proportionate to the entity's size, complexity and circumstances. It has been updated to reflect changes to legislative and regulatory requirements and other developments in sustainability-related and wider corporate reporting practice. Alongside the guidance, the FRC has also published updated Scoping Tables to support entities complying with Companies Act 2006 disclosure requirements for the strategic report, the directors’ report and the energy and carbon report to reflect reporting of payment practices within the Directors' Report.

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