The Financial Reporting Council (FRC), the UK’s independent regulator responsible for promoting confidence in corporate reporting and governance, will publish a number of reports in the October-December quarter focusing on the performance and responsibilities of companies and their auditors.

The FRC will shortly be publishing reports on the quality of impairment and liquidity disclosures in December 2007 accounts. The FRC is also preparing updated guidance for audit committees on corporate reporting risks for 2008 year ends.

The second FRC progress report on Choice in the UK Audit Market is due to be published in October. This year for the first time, the FRC’s Audit Inspection Unit will publish high-level reports on each audit firm on which it has conducted a full scope inspection visit during the 2007/08 cycle. The first series of these reports, covering firms which audit the majority of public interest entities is scheduled to appear in December. These reports will include reference to the firms internal preparations in 2007 to ensure their audit teams were adequately briefed on the implications of the worsening economic conditions.

Other expected publications in the forthcoming quarter include:
a consultation paper arising from the FRC’s review of the complexity and relevance of the requirements relating to corporate reports.

• a revised version of the Smith Guidance on Audit Committees, taking into account recommendations arising from the Market Participants Group’s study of choice in the UK audit market.
• a consultation paper on whether UK auditing standards should be updated for clarified international auditing standards.
• a feedback statement on the FRC’s consultation in relation to its future funding arrangements and implementation of these arrangements.
• a consultation paper on modelling by the Board for Actuarial Standards.
• the outcome of the review of the Accountancy and Actuarial Discipline Board’s accountancy scheme.

The FRC quarterly strategic progress and planning report also summarises the FRC’s activities on its major projects in the July-September quarter, including publication of:

• Discussion papers on promoting actuarial quality and on the monitoring and scrutiny of actuarial work. 
• Revised procedures for the FRRP. These aim to improve the transparency of the processes through which the Panel conducts its enquiries. 
• A conceptual framework for actuarial standards. 
• A consultation paper on a generic standard on actuarial data.

FRC Chief Executive, Paul Boyle, said:

“It is hardly surprising, in the current stressed climate in financial markets, that our focus is fixed on the quality of company accounts and the auditing of them. The FRC believes the risks to confidence in corporate governance and reporting are greater than they have been for some time, and the prioritisation of our work will reflect this.”

1. The Financial Reporting Council (FRC) is the UK's independent regulator responsible for promoting confidence in corporate reporting and governance. 
2. The FRC's functions are exercised principally by its operating bodies (the Accounting Standards Board, the Auditing Practices Board, the Board for Actuarial Standards, the Financial Reporting Review Panel, the Professional Oversight Board and the Accountancy & Actuarial Discipline Board) and by the Board. The Committee on Corporate Governance assists the Board in its work on corporate governance. 
3. The FRC’s updated Strategic Framework was published in November, 2007. Its Plan & Budget for 2008-09 was published on 22 April, 2008. 
4. All media enquiries should be addressed to Ian Rodger, Head of Communications, +44 (0) 20 7492 2395 or email at: i.rodger@frc.org.uk or Stephen Heathcote, Director of Planning and Resources, +44 (0) 20 7492 2404 email: s.heathcote@frc.org.uk.