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FRC publishes new disciplinary arrangements

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9th Jul 2013
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The Financial Reporting Council (FRC) is allowed to begin investigations into accountants' misconduct under new disciplinary arrangements.

The accountancy regulator said that it wants to make disciplinary schemes “more independent, efficient and effective."

New disciplinary arrangements include:

  • The ability to conduct enquiries before initiating an investigation
  • New arrangements for monitoring individual cases by members of a “case management” committee
  • A new power to issue interim orders
  • Amendments to reduce the potential for delay
  • A provision to facilitate the early resolution of disciplinary cases without the need for a tribunal hearing

The FRC has been busy over the last few months, updating financial reporting and audit rules.

Under the updated rules, auditors of listed companies will have to give a clearer explanation of the risks faced by their client under a revised standard that hopes to make audit reports more useful for investors.

The FRC said it has made a "significant" change to ISA 700 (UK and Ireland) 'The Independent Auditor’s Report on Financial Statements'.

The revised standard will require auditors reporting on companies which apply the UK Corporate Governance Code to explain more about their work.

Since the financial crisis, shareholders have criticised audit reports for being hard to understand and for giving banks clean bills of health shortly before they collapsed.

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