FRC amends Audit Inspection Unit findings model

News Article - 06 December 2007
Category: Regulatory

The Professional Oversight Board, part of the Financial Reporting Council, has amended its initial model for a new form of private and public reporting by its independent Audit Inspection Unit (AIU).

Aimed at increasing transparency in financial reporting, the arrangements were first proposed in June 2007 and have since been subject to a consultation period.

The new model includes publishing individual reports on the AIU's inspection of all major audit firms which will then be made public to the company's clients.

Sir John Bourn, chairman of the Oversight Board, said that the responses to the consultation had been taken into account and that initial proposals had been amended "where it considered this to be appropriate".

"The overall policy conclusions, however, reflect the board's continued commitment to the principles of transparency and accountability," he added.

Changes to the model following the consultation include introducing a single publication date for the reports and cancelling plans to produce an annual list of the individual audits.

In June, Sir Bourn said that implementing the new model in a time and cost-effective manner would prove "challenging" for the AIU and affected audit firms but that he was confident that both would be able to handle the task.

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