Accountants fret over FRRP changes

Kashflow logo
Share this content


Plans for the Financial Reporting Review Panel (FRRP) to share more information with the Audit Inspection Unit (AIU) and to name companies that breach accounting rules could undermine trust in auditors, the accounting profession has warned.

Under recently published revised operating procedures the FRRP will swap notes with the Audit Inspection Unit (AIU) and may publicise “significant changes” or errors in companies’ accounts.

Following a consultation process by the Department for Business (BIS) the FRRP, which acts as an accounting watchdog within the Financial Reporting Council, will also reserve the right of to make a public announcement when it requires a company to make a significant change or restatement, “whether corrective or clarificatory”.

In general, respondents to the consultation supported the proposal to share information with the AIU, the FRRP said in its summary of the consultation responses.

But not all accounting firms were happy with the proposal. Deloitte said in its consultation response that the FRRP’s proposal to share information with the AIU risks “damaging the audit/ company relationship by creating unease on the information passing from the AIU to the FRP or vice versa”.

Please Login or Register to read the full article

The full article is available to registered members only. To read the rest of this article you’ll need to login or register. Registration is FREE and allows you to view all content, ask questions, comment and much more.

About Nick Huber

Nick Huber profile image

I’m a specialist business journalist and have a particular interest in tax and technology. 


Please login or register to join the discussion.

20th Mar 2012 23:31

FRRP changes

This is a sort of good news atleast the accounting procedures will get improved.

But if FRRP intention is to point a finger at accounting anomalies and put the blame on accounts than, what is the point in doing audit.

Might be auditors themselves don't know whether the same thing is explained in different way.


Thanks (0)