According to the FRC ethical standards, what is a main requirement for firms?

The primary requirement for firms according to the FRC (Financial Reporting Council) ethical standards is to ensure compliance with principles of integrity, objectivity, and independence. These ethical standards are designed to maintain public confidence in the audit profession and to ensure that firms operate with high ethical conduct.

Integrity requires that firms be straightforward and honest in all professional and business relationships. Objectivity demands that firms do not allow bias, conflict of interest, or undue influence of others to override their professional or business judgments. Independence is crucial, as auditors must be free from any relationships that could impair their objectivity and integrity in evaluating the financial statements of their clients.

By adhering to these principles, firms can protect their reputation, enhance their credibility, and fulfill their responsibilities to stakeholders. This foundation is essential for the trust placed in auditors by clients, investors, and the wider public, making it a fundamental requirement under FRC standards.