FRC calls for greater financial experience
The Financial Reporting Council's new draft code for audit committees, published today, states that at least one members of the committee should have 'significant' recent and relevant financial experience.
The Financial Reporting Council's new draft code for audit committees, published today, states that at least one members of the committee should have 'significant' recent and relevant financial experience.
Link: FRC head warns against SEC apery
The new draft code of guidance further says an audit committee should have a minimum of three members, which all should receive suitable training.
Sir Robert Smith, chairman of The Weir Group, who chaired the FRC audit committee group, said the code ‘will strengthen the hand of audit committees without breaking the unitary board structure’.
The code says audit committees should monitor financial statements, review the internal control system and internal audit function. It should make recommendation about external audit appointments and review its independence and non-audit work.
It also rules that the board of directors should provide the audit committee with sufficient resources to perform its task, even if this involves getting independent advice.
Smith denied reports that the code could give the audit committee an adversary role in general. But in specific situations, he admitted it could find itself between a rock and a hard place.
‘If something serious is going on, the audit committee needs to follow through to the end. That could lead to an adversary position,’ he said.
The FRC has set a consultation period on 12 weeks, before it will finalise the code on 14 April. Companies should implement the code by 1 July this year.
The numbers you crunch tell a story. Your expertis...
23yEmbracing user-friendly AP systems can turn the tide, streamlining workflows, enhancing compliance, and opening doors to early payment discounts. Read...
View articleOrganisations can enhance their financial operations' efficiency, accuracy, and responsiveness by adopting platforms that offer them self-service cust...
View articleIn a world of instant results and automated workloads, the potential for AP to drive insights and transform results is enormous. But, if you’re still ...
View resourceDiscover how AP dashboards can transform your business by enhancing efficiency and accuracy in tracking key metrics, as revealed by the latest insight...
View articleWhen right is nobody’s business, wrong sets the culture. The recent PCAOB fines totalling $8.5 million for cheating on ethics exams at Deloitte, PwC a...
View articleAgentic AI is pushing beyond routine automation, offering tax teams autonomous workflows, compliance insights, and specialist AI “colleagues.” Here’s ...
View articleIn a bid to future-proof the UK’s capital markets, ICAEW has outlined four principles to evolve the reporting accountant’s role, highlighting the bala...
View articleThe FRC has warned that big accountancy firms aren’t tracking how AI tools affect audit quality, raising concerns over oversight amid growing reliance...
View articleKPMG has been fined £1.25m by the Financial Reporting Council (FRC) over serious breaches of audit independence rules during its 2021 audit of farm an...
View articleThe Financial Reporting Council (FRC) has opened consultation on a proposed UK version of a new global sustainability assurance standard, aiming to gi...
View articleICAEW’s latest monitoring report finds that while most audits remain of acceptable quality, 10% were flagged for significant improvements, highlightin...
View articleThe UK accounting watchdog has identified “extremely serious” failings in EY’s audits of NMC Health, according to claims aired at the High Court this ...
View article