What is the role of the Financial Reporting Council (FRC) in the UK?

• A. Overall responsibility for auditing and accounting in UK
• B. Regulates banks
• C. Oversees tax collection
• D. Writes corporate governance codes only

Answer: (A)

The FRC’s main job is to oversee the standards and quality of financial reporting and auditing in the UK. It operates as an independent regulator that develops and maintains accounting and auditing standards, monitors how those standards are applied, and supervises the quality of audits and corporate reporting. It also plays a role in the corporate governance framework for listed companies, but its remit is broader than just issuing governance codes. It does not regulate banks directly (that function sits with the Bank of England’s PRA and the FCA) or handle tax collection (that’s HMRC). So the description that captures its overall responsibility for auditing and accounting in the UK is the best fit.