Companies 'should notify FRRP immediately after qualification'

The Financial Reporting and Review Panel has published a paper suggesting
that companies should inform it immediately when accounts have been qualified by
auditors.

The FRRP said the notification
would be in the interests of improving quality and reliability of annual
financial statements.

In a statement released today, the FRRP said it wanted to ensure that the
provision of financial information by public and large private companies
complied with requirements of the Companies Act.

Unqualified accounts, it said, indicated a failure to comply with
requirements and may also not be true and fair.

If the profession accepts the suggestion, accounts could in furture reviewed
with the possibility of corrective action, where necessary. 

The panel is currently only informed of qualified accounts some time after
these have been published.

The FRRP has suggested that immediate notification would allow the panel to
seek corrective action immediately, and thus reduce uncertainty in the market.

Consultation on the issue will close on July 31.

Further reading:

The
Financial Reporting Review Panel invites views on a proposal to encourage
voluntary disclosure of qualified audit reports

FRRP
Consultation paper