FRC stakeholder views sought
28 Mar 08
The Financial Reporting Council aims to stimulate dialogue with stakeholders about how to improve the cost-effectiveness of its regulation
The Financial Reporting Council (FRC) aims to stimulate dialogue with stakeholders about how to improve the cost-effectiveness of its regulation without compromising its high standards of corporate reporting and governance.
It has published a discussion paper that highlights some of the most significant actions already taken to cut costs and invites comments on further cutting costs associated with FRC regulation – not internal costs – while preserving confidence in corporate reporting and governance.
The FRC would welcome feedback by 31 May on the questions set out in the discussion paper and any other aspects of the cost-effectiveness of FRC regulation.
Audit committee review under way
The Financial Reporting Council is consulting on proposed changes to the Smith Guidance on Audit Committees following recommendations from the Market Participants Group.
They include:
- Company boards to provide information to shareholders relevant to their auditor selection decision.
- Company boards to disclose any contractual obligations to appoint certain types of audit firms.
- Large companies to consider the need to include the risk of the withdrawal of their auditor from the market in their risk evaluation and planning.
- Reviewing guidance on auditor independence for consistency with relevant ethical standards. Comments on the proposals are required by 6 June.