Introduction

Technology, and its use in the areas for which the FRC has regulatory responsibility, is increasingly at the forefront of discussions between regulators, standard setters, practitioners, and wider stakeholders. The FRC Technology & Digital Hub provides an overview of the FRC's work in this area, including how that work fits into the wider FRC strategy, links to our publications and information on how you can get involved in our work.

FRC 2023/24 technology priorities

The technological landscape is rapidly evolving, with new innovations occurring frequently. Whilst many emerging technologies are thought provoking, and we are open minded as to many technologies’ potential, not all are relevant to our regulatory remit. It is thus important that the FRC focuses its strategy and approach on those key technologies with the greatest potential for improved regulatory outcomes.

Guidance should be focused on need. Innovation is a positive force, but guidance and publications must be reflective of demand from stakeholders and ensure that we utilise the FRC’s resources in an appropriate manner, consistent with our public interest objectives.

When considering technology and digital priorities, we always have regard for the FRC's core objectives. Technology and digital can impact upon any of the FRC's five core objectives, though the largest impact will likely be on the second:

“To promote improvements and innovation in the areas for which we are responsible, exploring good practice with a wide range of stakeholders.”

With these principles in mind, we have undertaken a process for prioritising the FRC's work on technology and digital, following the steps laid out in our principles and approach, and illustrated below are the key areas of focus for the FRC. We have divided the topics into four quadrants:

Lead priorities

For those topics identified as lead priorities, the FRC will, and in many cases already is, actively developing standards, policies and guidance. These are the areas which have the greatest impact upon the areas within our regulatory remit and the greatest potential for improved regulatory outcomes.

Medium priorities

Those topics identified as medium priorities are of great interest to the FRC, but are technologies which may be more forward looking, or that do not currently appear to have significant potential for improved regulatory outcomes. These technologies may also be those which have great potential for improved regulatory outcomes but are not yet commonly deployed in practice. An example of that is the use of machine learning by auditors, which the FRC believes has great potential. As such, we are considering the active development of policies and guidance which promote the use of these tools.

Monitoring/influencing

Topics which fall into the monitoring/influencing category are those with some impact upon our regulated community and with some potential to improve regulatory outcomes but are either at a very early developmental stage or their potential is as yet unclear. These topics will be monitored, but the FRC will not be actively developing guidance or policies in relation to these topics.

Our principles & approach

We will serve the public interest, promoting quality and its enhancement through the effective use of technology, by developing our strategy and workplan with a focus on the following key principles: