The UK’s Financial Reporting Council (FRC) has, for the first time, published summaries of its corporate reporting reviews.
The regulator conducts over 200 corporate reporting reviews to assess whether company reports and accounts comply with relevant reporting requirements.
The increased transparency is aligned with the recommendation in the Kingman review that reviews should be made publicly available. Due to current company law requirements, summaries can only be published with the consent of individual companies.
As part of the Business, Energy, and Industrial Strategy’s (BEIS) consultation, Restoring trust in audit and corporate governance, the UK Government is consulting on proposals to all the FRC to publish summaries without the consent of the companies, once sufficient safeguards around confidential information are in place.
The FRC previously published the companies reviewed, the scale of the review and whether substantiative correspondence had been entered into. However the regulator did not provide further details of review findings.
FRC executive director of supervision David Rule said: “Publishing summaries of corporate reporting reviews is an important step towards improving the transparency of the FRC’s monitoring work and an example of the FRC taking forward the Government’s programme to restore trust in audit and corporate governance.”
The FRC selects company accounts for review based on criteria which includes size, risk, and industry sector. A full list of the summaries is available here.