Save content
Have you found this content useful? Use the button above to save it to your profile.
AIA

Monitoring focus widens

by
13th Dec 2005
Save content
Have you found this content useful? Use the button above to save it to your profile.

The Financial Reporting Review Panel (FRRP) has announced it is to extend its account monitoring selection criteria to include companies providing services to the sectors it has previously targeted.

Accounts monitoring activity takes place in the automobile, pharmaceutical, retail, transport and utility sectors. The industries were selected after risk assessment discussions with the Financial Services Authority and the Panel's Standing Advisory Group, an independent committee which comments on FRRP's proposals.

Announcing the proposal, FRRP chairman Bill Knight said: 'The industry sectors we identified in December 2004 continue to warrant our attention in 2006/07. Implementation of IFRS is a key challenge for many companies and will influence both the accounts we review and the specific issues we will cover.'

The selection of accounts for review will continue to be drawn from the full range of companies within FRRP's remit, which includes large private companies. Accounts will also be selected for review on the basis of company specific factors such as poor corporate governance.

FRRP's role is to examine the annual accounts of public and large private companies to see whether they comply with the requirements of the Companies Act 1985 together with any applicable accounting standards.

Where breaches are identified, FRRP tries to make companies revise their accounts voluntarily. When a company refuses to make revisions, FRRP has the power to take action through the courts but to date this has never happened.
 

Tags:

Replies (0)

Please login or register to join the discussion.

There are currently no replies, be the first to post a reply.