FRRP teams up with FSA to review accounts

The Financial Reporting Review Panel is to team up with the Financial Services Authority on investigations into listed company accounts, the body revealed today (Wednesday).

Link: Target companies’ reputations won’t suffer, says FRRP

The two watchdogs have signed a memorandum of understanding that will ensure co-operation over any action taken against companies that breach accounting or listing rules. The FRRP is also finalising another memorandum of understanding with the Inland Revenue under which that tax authority may disclose company account information to the FRRP.

The move comes on a day in which the statutory powers of the body tasked with examining the accounts of public interest entities have increased dramatically.

As part of it new proactive investigations, it now has the ability to demand companies, directors and auditors to provide documents and other information if the panel requires it.

‘These changes increase the panel’s authority, but we know that the best regulation is by agreement, and that is what we try to achieve,’ said FRRP chairman Bill Knight.

‘Every business which prepares accounts also uses them, and it is in all our interests to make sure that the system of regulation works and that accounts continue to be true and fair.’

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