Financial reporting errors: What you need to know
In the first of a series of three articles, Steve Collings highlights some key issues from the Financial Reporting Review Panel’s latest report on errors made in companies’ reports and accounts.
In September 2012, the Financial Reporting Review Panel (FRRP) issued their annual report outlining their conclusions on the accounts they have inspected. The scope of the FRRP is to ensure that the reports and accounts published by public and large private companies comply with the requirements of Companies Act 2006, which also includes applicable accounting standards.
The vast majority of accountants will deal with smaller clients in the SME sector, but the report issued by the FRRP can highlights some of the problems faced by the larger practices with their large clients. While many accountants primarily deal with SME-based clients, many firms do have larger firms on their books and the findings of the FRRP can be a helpful insight into issues which they have found, which may flag up issues in other firms to help during any QAD or monitoring visit.
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- Directors’ reports and business reviews
- Clutter issues
- Accounting policies
- Items in other comprehensive income
- Netting off
- Cash flow statement
- Income tax