FRRP opens up – a bit
New procedures will see greater transparency at FRC body, but most work will remain confidential
Transparency at the
Financial Reporting Review
Panel is to be revamped in a move that could open up the normally secret
workings of the body to greater scrutiny.
Following a consultation and approval by the government, the FRC panel will
from next month copy the finance director in on its first letter to the company
chairman, send a copy of the closing letter to the company’s auditor, allow
independent audit of the panel’s processes and publish the details of some cases
where it helps with the harmonisation of international accounting requirements.
Historically, the FRRP has only made any details of it investigations into
company accounts public when the matter has been closed and only if there had
been some dispute with the company or it had initially failed to take action
over the panel’s findings.
Most of the panel’s work will still remain confidential, which it maintains
is essential to ensure co-operation from the companies whose accounts it is
reviewing.
Further reading:
Legal
threat looms on qualified accounts