The Auditing Practices Board (APB) today issued Bulletin 2008/2 ‘The Auditor’s association with preliminary announcements made in accordance with the requirements of the UK and Irish Listing Rules’.

This Bulletin provides updated guidance for the auditor to reflect the following changes in the Listing Rules:

• Moving from a mandatory to a permissive regime for the publication of preliminary announcements; and
• Requiring preliminary announcements to give details of any likely modification (rather than qualification) of the auditor’s report required to be included with the annual financial report.

The Bulletin continues to emphasise the need for the auditor to consider the way in which alternative performance measures (non-statutory information) and management commentary are presented in preliminary announcements, before agreeing to their release.

Richard Fleck, Chairman of APB commented:

“If a company decides to make a preliminary announcement it will be the first public communication of that company’s full year results and, as such, will be a focal point for investor interest. By agreeing to the announcement prior to publication, auditors have an important role to play in the orderly release of preliminary statements of annual results.”

The Bulletin can be downloaded, free of charge, from the Bulletins section of the APB’s website (www.frc.org.uk/apb/publications) Printed copies are available (price £6) from:

FRC Publications
145 London Roard
Kingston upon Thames
Surrey KT2 6SR.

Telephone: 020 8247 1264
Fax: 020 8247 1124
Email: customer.services@cch.co.uk,  
Website: www.frcpublications.com.

1. The Financial Reporting Council (FRC) is the UK’s independent regulator responsible for promoting confidence in corporate reporting and governance. Its 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 and Actuarial Discipline Board) and by the Committee on Corporate Governance.
2. The APB is committed to leading the development of auditing practice in the United Kingdom and the republic of Ireland so as to:
   • establish high standards of auditing;
   • meet the developing needs of users of financial information; and
   • ensure public confidence in the auditing process.
     
3. Listing Rule 9.7A.1R requires, among other things, that where a listed company prepares a preliminary statement of annual results that statement must be agreed with the company’s auditors prior to publication.
4. The Bulletin will supersede Bulletin 2004/1 ‘The auditors’ association with preliminary announcements’ when the rules of the United Kingdom Listing Authority or the Irish Stock Exchange that implement the Transparency Directive apply to a preliminary announcement. The timing of the application of these rules to the preliminary announcements of companies will differ dependent on the start date of their financial year.
5. All press enquiries should be directed to Jon Grant on Tel: 020 7492 2410.