The legal and regulatory frameworks: Finance Reporting Council (FRC), Government (Department of Business, Innovation and Skills – BIS), European Union
Three bodies set the legal and regulatory rules that govern how accountants and businesses must behave. These are the Financial Reporting Council, the UK Government, and the European Union.
Real World
Following the Carillion collapse, the FRC faced public criticism and was subsequently replaced by the Audit, Reporting and Governance Authority (ARGA) — a real-world example of government (via BIS/BEIS) intervening to strengthen the regulatory framework when it failed.
Exam Focus
If asked about the FRC, note it sets standards but does not make law — contrast this with government legislation, which is legally binding, to show depth of understanding.
Essay Framework
Use PEEL to structure every paragraph. Tap each step for guidance and an example.
How well did you know this?