FRC releases guidance on audit committees
The Financial Reporting Council urges audit committees to be more open about how they choose their auditor
According to a statement released today, the FRC is also urging greater
disclosure on information relating to the process whereby an external auditor is
chosen.
Furthermore, The Guidance on Audit Committees report also outlines items to
consider in the event a group engages firms from multiple networks to work on an
audit.
Paul Boyle, chief executive of the FRC, said given the standing of such
committees, the guidance is made all the more pertinent.
‘We hope that the revised guidance will encourage more engagement between
companies and their shareholders on the selection of the external auditor and
the roles and responsibilities of the audit committee more generally,’ he said.
The release of the guidance comes in light of recommendations made in the
Market Participants Group’s report, published in October last year.
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