New Audit Report Standard from the FRC
The Financial reporting watchdog has recently issued a new and revised auditing standard. The watchdog claims that the new standard will improve transparency in the industry due to the fact that it will increase the amount of communication with investors.
Board engagement was a primary suspect in the changes. The FRC now requires all boards to describe the work that the audit committee performs in their own annual reports. The new standard will also require the auditor to report back if the disclosures in the board don’t address matters that were previously communicated and taken up with the audit committee.
It will now also be required of auditors to inform the committee if there are any significant changes to audit judgments. The committee will now also be required to report all of their activities and communication directly with the auditor.
A lengthier process perhaps, but worth it for the transparency?
Stonehouse Accountants operate in the Peterborough, Kettering, Corby and Market Harborough area, call us now if you’re looking to change accountant or need a new one. 01733 26588.