The FRC (Financial Reporting Council) announced the launch of a project to evaluate and plan how to assist smaller listed and AIM companies address ‘quality of reporting’ and increase ‘confidence in the integrity of their financial statements and markets as a whole’.
The aim of the project is to help increase confidence in reporting, as these companies are important for economic growth. The process will be split into three phases.
- Looking to identify the causes of the issues and how the FRC can potentially support these companies in order for them to make improvements.
- Implement actions highlighted through the review.
- Monitor and assess if quality of reporting has improved.
The FRC will review a sample of reports, look at audit procedures, meet with key stakeholders and look at the governance at similar companies.
For more information see the FRC, including how to contribute to the project.