RECOMMENDATIONS FOR FUTURE PROSPECTS AND REFORMS
Although the direction of future reforms and prospects for the FRC are to be influenced by changes in government policies, economic conditions, technological advancements, and international developments, below are some suggestions for improvement of the FRC.
1. Enhanced Enforcement Mechanisms: There should be a focus on strengthening the FRC’s enforcement mechanisms to ensure that companies comply with financial reporting, corporate governance, and ethical standards. This could involve stricter penalties for non-compliance and more robust monitoring processes.
2. Digital Transformation: As technology evolves, the FRC should seek to embrace digital tools and platforms to streamline its operations, facilitate information dissemination, and improve communication with stakeholders. Digital solutions could enhance efficiency and accessibility for both regulatory functions and stakeholder engagement.
3. Engagement with Stakeholders: The FRC should endeavour to strengthen its interactions with various stakeholders, including businesses, investors, auditors, and professional bodies, to receive quality feedback. This can help ensure that regulatory initiatives and standards are well-informed, practical, and effectively address the needs of the ecosystem.
4. Capacity Building: The FRC should invest in capacity-building programs for professionals in the accounting and auditing sectors. This ensures that professionals are equipped with the knowledge and skills necessary to adhere to evolving standards and practices.
5. SME Focus: Recognizing the significance of small and medium-sized enterprises (SMEs) to the economy, the FRC should develop tailored approaches to address the specific needs and challenges faced by SMEs in complying with regulatory requirements.
6. Flexibility and Adaptation: The regulatory landscape is dynamic. As such, the FRC will need to remain flexible and adaptive to changes in technology, business practices, and international standards. Regular review and updates of regulations and practices will be essential.