FRRP gives UK accounting clean bill of health

The UK’s audit watchdog has released its first report into UK accounting –
concluding that there was ‘no evidence of systemic weakness’.

Despite fears that the UK might face similar accounting issues to those that
brought down Enron and Parmalat, the Financial Reporting Review Panel said that
it had reviewed 226 sets of accounts, and found only three breaches of reporting
requirements significant enough to issue a public notice.

The review covered the period from January 1 2004 to March 31 2005, the three
public announcements relating to two private companies and one generic notice on
FRS10, on goodwill and intangible assets.

The FRRP made 77 further enquiries from its 226 reviews, with 38 companies
undertaking to make amendments in future accounts.

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