Register to get free articles
Want unlimited access? View Plans
Already have an account? Sign in
The Financial Reporting Council (FRC) has announced its new areas of supervisory focus for the next financial year with a primary focus on fraud and ‘going concern’ reporting.
The FRC’s supervision division will conduct a number of thematic reviews into corporate reporting and audits alongside its routine reviews.
Its audit quality review team will focus its audit quality inspections on areas including going concern, fraud risks, climate-related risks, and risk identification and assessment.
The corporate reporting review team will focus on four main themes including insurance contracts, large private companies, a task force for climate related financial disclosures and fair value measurement.
The priority sectors for the FRC include travel, hospitality and leisure, retail and personal goods, construction and materials and industrial transportation.
These sectors are considered by the FRC to be higher risk, for corporate reporting and audit, by virtue of economic or other pressures.
The FRC said: “Given the difficult economic conditions that are currently being experienced, we recognise that many companies, in many different sectors, are currently under particular commercial and financial pressure.
“We will therefore be especially careful over the coming year in monitoring where these pressures are being felt most acutely, and tailor our selection of company reports for review and audits for inspection accordingly.”
