The Financial Reporting Council has provided more details relating to supervision under new corporate governance proposals, including broadening the regulator’s review powers to allow it to scrutinise the entire contents of a company’s annual report and accounts.
In a webinar hosted by the Financial Reporting Council (FRC), the regulator explained the scope of reviews into corporate reporting and audit quality. It also highlighted some of the practical implications of proposed changes to Public Interest Entity (PIE) auditor registration.
Among the recommendations outlined in the government’s Restoring trust in audit and corporate governance: proposals on reforms white paper is a broadening of the regulator’s review powers that would allow it to scrutinise the entire contents of a company’s Annual Report and Accounts. Currently, the regulator’s Corporate Reporting Review (CRR) powers only extend to the strategic report, the accounts themselves and the directors’ report.