Institute of Chartered Accountants in England & Wales

The Financial Reporting Council (FRC) and the four Recognised Supervisory Bodies in the United Kingdom, ACCA, CAI, ICAEW, and ICAS, share responsibility for the quality assurance review system governing statutory audits in accordance with the Companies Act 2006 and the Statutory Auditors and Third Country Auditors Regulations 2016 (SI 2016/649). These bodies operate quality assurance review systems for audit firms that are designed to ensure compliance with applicable auditing and ethical standards and are subject to oversight by the FRC.

As a Recognised Supervisory Body, ICAEW is responsible for monitoring and supervising audit firms registered with the institute. ICAEW conducts monitoring reviews through its Quality Assurance Department, which reviews the work of audit firms and other regulated firms to assess compliance with auditing standards, ethical requirements, and regulatory obligations. The monitoring program includes regular inspections and follow-up procedures where deficiencies are identified.

ICAEW maintains established policies and procedures governing its quality assurance review process and reviews these arrangements periodically to ensure alignment with SMO 1 requirements and regulatory expectations. Staff involved in monitoring activities receive ongoing training to remain informed of developments in accounting and auditing standards, regulatory requirements, and professional ethics.

To support compliance among its members and regulated firms, ICAEW provides guidance materials, technical resources, and professional communications that address regulatory and professional requirements, including matters related to audit quality and anti-money laundering supervision. These activities are designed to support firms in maintaining high standards of professional practice and audit quality.

Current Status: Sustain

Recognised Qualifying Bodies deliver the initial and continuing professional education requirements for statutory auditors in the United Kingdom. The Financial Reporting Council maintains oversight of these arrangements and has cooperation agreements with the principal professional accountancy bodies in the jurisdiction, including ACCA, the Chartered Institute of Management Accountants, the Chartered Institute of Public Finance and Accountancy, ICAEW, CAI, and ICAS, as well as the Association of International Accountants, in relation to oversight of initial professional development and continuing professional development requirements for professional accountants.

Several professional accountancy organizations in the jurisdiction, including ACCA, CAI, ICAEW, ICAS, CIPFA, AAT, the Chartered Institute of Management Accountants, and the Institute of Financial Accountants, indicate that their professional qualification programs align with the International Education Standards issued by the International Accounting Education Standards Board.

ICAEW implements initial professional development through its Chartered Accountant qualification (ACA), which combines academic study, professional examinations, practical work experience, and the development of professional skills and ethics. The institute maintains processes to review and update the ACA syllabus and training arrangements to ensure that they remain aligned with developments in international education standards and professional practice.

Continuing professional development is mandatory for ICAEW members and is designed to ensure that members maintain and develop their professional competence throughout their careers. ICAEW provides guidance, resources, and monitoring processes to support compliance with CPD requirements and to help members maintain the competencies required for professional practice.

ICAEW periodically reviews its education and training arrangements and communicates developments in professional education and international standards through technical publications, professional communications, and its website.

Current Status: Sustain

The Financial Reporting Council is responsible for issuing auditing standards in the United Kingdom in accordance with the Companies Act 2006 and the Statutory Auditors and Third Country Auditors Regulations 2016. All statutory audits must be conducted in accordance with International Standards on Auditing (UK) issued by the Financial Reporting Council. ISAs (UK) are based on the International Standards on Auditing issued by the International Auditing and Assurance Standards Board, with certain additions reflecting UK company law and regulatory requirements.

Although ICAEW does not have direct responsibility for setting auditing standards in the United Kingdom, it actively supports the adoption and implementation of standards issued by the IAASB. ICAEW engages with the Financial Reporting Council and contributes to discussions on developments in auditing standards through consultations, technical discussions, and participation in professional forums.

ICAEW supports the implementation of auditing standards through a range of technical guidance, publications, and professional development resources for its members. These include technical bulletins, articles, webinars, conferences, and implementation guidance available through ICAEW’s website and professional communications.

The institute also engages with training providers, audit firms, and other stakeholders to support consistent application of auditing standards and promotes awareness of developments in international auditing and assurance standards. ICAEW contributes to international standard-setting activities by responding to exposure drafts issued by the IAASB and encouraging member engagement in consultations.

In addition, ICAEW offers learning and professional development programs designed to enhance understanding and application of auditing standards among finance professionals, auditors, students, and other stakeholders.

Current Status: Sustain

In accordance with their charters and by-laws, professional accountancy organizations in the United Kingdom are authorized to establish ethical requirements for their members. Professional accountancy organizations in the jurisdiction indicate that their ethical frameworks are aligned with the International Code of Ethics for Professional Accountants issued by the International Ethics Standards Board for Accountants and that they maintain ongoing processes to review and incorporate revisions to the Code where they are not in conflict with national laws and regulations.

ICAEW has adopted a Code of Ethics that is based on the International Code of Ethics issued by the International Ethics Standards Board for Accountants. The institute supports compliance with the Code through guidance materials, technical resources, and professional communications designed to assist members and students in applying ethical principles in practice.

ICAEW promotes awareness and understanding of ethical requirements through publications, articles, case studies, and guidance materials that provide practical support for resolving ethical issues. Members are provided with tools and frameworks that assist them in identifying and addressing ethical dilemmas.

The institute monitors developments in international ethical standards and informs members of updates through its website, newsletters, journals, and other professional communications. Compliance with ethical requirements is also considered as part of ICAEW’s regulatory and monitoring activities, including quality assurance review visits and investigation processes where appropriate.

Ethics are integrated into ICAEW’s education and training framework. Students are required to complete an ethics learning program as part of the Chartered Accountant qualification, and ethical considerations are incorporated into continuing professional development and training materials.

ICAEW also participates in the international standard-setting process by responding to consultations and exposure drafts issued by the International Ethics Standards Board for Accountants and by encouraging member engagement with developments in international ethical standards.

Current Status: Sustain

HM Treasury is responsible for establishing accounting policies and standards for the preparation of central government financial statements in the United Kingdom. For local government, the Chartered Institute of Public Finance and Accountancy and the Local Authority Scotland Accounts Advisory Committee work together through the CIPFA/LASAAC Local Authority Code Board to develop the Code of Practice on Local Authority Accounting in the United Kingdom. The Code of Practice is based on UK-adopted IFRS and draws on International Public Sector Accounting Standards and other relevant financial reporting guidance.

Although ICAEW does not have direct responsibility for the adoption or implementation of International Public Sector Accounting Standards in the United Kingdom, the institute supports the development and promotion of high-quality public sector financial reporting. ICAEW contributes to the work of the International Public Sector Accounting Standards Board through participation in consultations and by providing technical expertise and input on developments in public sector reporting.

ICAEW raises awareness of developments in public sector accounting and IPSAS through professional publications, technical resources, events, and educational programs. The institute provides training materials and learning resources designed to help finance professionals understand developments in public sector financial reporting and the implications of IPSAS adoption.

ICAEW also engages with stakeholders in the United Kingdom, including HM Treasury, the National Audit Office, and other public sector organizations, on issues related to public sector financial reporting and IPSAS developments. Through these activities, ICAEW supports the dissemination and understanding of IPSAS and promotes high-quality financial reporting practices in the public sector.

Current Status: Sustain

In accordance with their charters and by-laws, professional accountancy organizations in the United Kingdom are authorized to establish systems of investigation and discipline for their members in cases of noncompliance with applicable professional standards and ethical requirements. Professional accountancy organizations in the jurisdiction, including ACCA, the Chartered Institute of Management Accountants, the Chartered Institute of Public Finance and Accountancy, and the Institute of Financial Accountants, report that they operate investigation and disciplinary systems that align with the requirements of SMO 6.

ICAEW maintains an investigation and disciplinary framework for its members and registered firms that addresses complaints, allegations of misconduct, and breaches of professional standards. The institute operates processes for receiving and investigating complaints, conducting disciplinary hearings, and imposing sanctions where misconduct is established.

ICAEW participates in the Financial Reporting Council’s Accountancy Scheme, an independent disciplinary framework for the UK accountancy profession. Under this scheme, cases involving significant public interest considerations may be referred to the Financial Reporting Council for independent investigation and prosecution.

ICAEW’s investigation and disciplinary processes are subject to oversight by relevant regulatory authorities and are periodically reviewed to ensure that they remain effective and aligned with regulatory expectations and SMO 6 requirements. The institute also monitors a range of information sources, including complaints and regulatory information, to identify potential misconduct by members.

To support compliance with professional standards, ICAEW provides guidance materials, technical resources, and professional communications to increase awareness and understanding of disciplinary requirements and professional conduct obligations.

Current Status: Sustain

The Financial Reporting Council is responsible for issuing accounting standards in the United Kingdom in accordance with the Companies Act 2006. IFRS as adopted for use in the United Kingdom are required for the consolidated financial statements of companies whose securities are admitted to trading on a regulated market. Other entities apply UK accounting standards issued by the Financial Reporting Council, including Financial Reporting Standards developed for entities of different sizes and reporting requirements.

Although ICAEW does not have direct responsibility for the adoption of accounting standards in the United Kingdom, it supports the adoption and implementation of International Financial Reporting Standards through a range of professional and educational activities. ICAEW incorporates IFRS into its education and training programs and provides members with access to technical guidance and learning resources on developments in financial reporting standards.

ICAEW’s Financial Reporting Faculty provides technical briefings, publications, webinars, and other resources designed to support members in understanding and applying IFRS and other financial reporting requirements. These resources are made available through ICAEW’s professional communications and online platforms.

The institute also provides training programs and educational materials aimed at strengthening understanding and application of IFRS among members and other finance professionals. ICAEW disseminates information about developments in international financial reporting standards through alerts, newsletters, and technical updates.

ICAEW participates in the international standard-setting process by responding to consultations and exposure drafts issued by the International Accounting Standards Board and encourages engagement from its members and the wider profession.

Current Status: Sustain