Audit Firm Culture

Concepts

• research and development
• frc
• audit firm culture
• appropriate audit evidence
• audit culture
• critical component of an audit firm
• audit
• audit firms' activities
• high quality audits
• research project

Location

Geochart for 1 buyers and 0 suppliers

Financial Reporting Council

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Description

The Financial Reporting Council (FRC) regulates auditors, accountants and actuaries and sets the UK's Corporate Governance and Stewardship Codes. We seek to promote transparency and integrity in business; our work is aimed at investors and others who rely on company accounts, audit and high-quality risk management. In May 2018 the FRC published a thematic review on Audit Culture. Audit firm culture is a critical component of an audit firm's ability to deliver high quality audits in the public interest therefore the review looked at audit firms' activities to establish, promote and embed a culture that is committed to delivering consistently high-quality audits. One key attribute of a good, healthy audit culture is auditors being able to challenge companies' management teams effectively and exercise professional scepticism when performing audits. The FRC's work continues to show that auditors often struggle to challenge the management of audited entities effectively, especially on issues that involve judgement. This can result in auditors failing to obtain sufficient and appropriate audit evidence, and in some cases, failing to identify or seek the correction of potential misstatements of the financial statements. This research project will provide evidence and analysis to support the FRC's current thematic review on audit culture. This will involve considering drivers of behaviour that either promote or inhibit auditors' exercise of professional scepticism and their effective challenge of management - including the reward structure, performance management, learning and development, leadership, governance, and communication at the firm. The contractor's research team will gather evidence using focus groups. The research team's analysis of these will subsequently be provided in a report to the FRC. The FRC's team will use the information in this report in addition to the FRC's own evidence and analysis to produce a thematic review report written by the FRC. The research team's report will not be published separately but the research team will be credited in the FRC's published report. The suggested approach to the focus groups and interviews will be as follows: A. A minimum of three focus groups for each of the seven largest audit firms, split by level of seniority B. A minimum of three individual interviews with a Partner or Director at each of the seven largest audit firms C. A focus group with the Independent Non-Executive Directors at each of the seven audit firms. Full details are available in the attached Invitation to Tender (ITT) document.

CPV Codes

• 73000000 - Research and development services and related consultancy services

Indicators

• Contract is suitable for SMEs.
• Contract is suitable for VCOs.

Other Information

Notes:- • Download and review the documents; • Observe the timelines and tender process • Register your interest in this opportunity by email to procurement@frc.org.uk • You will need to register your interest in this opportunity to receive the Q&A responses. 01 Audit Firm Culture ITT.pdf 02 Tender Response Final.docx