UK Regulator FRC Flags Big Four Over Offshoring Of Complex Audit Work

The UK’s Financial Reporting Council (FRC) has raised concerns over the growing use of offshore teams by the Big Four accounting firms for audit work involving professional judgement.

In its Annual Review of Audit Quality 2026, the regulator said firms are increasingly relying on extended team models, with offshore professionals taking on more complex audit tasks. The FRC said it will closely monitor the practice to ensure audit quality is maintained. The FRC said cost pressures, technological changes and evolving regulations are driving greater use of offshore teams. It added that firms must maintain effective supervision, governance and quality controls while integrating offshore professionals into audit operations.