The Auditing Practices Board (APB) of the FRC has today produced new guidance for auditors on their responsibilities in reviewing a listed company’s statement as to whether the business is a going concern and in reviewing Corporate Governance Statements required by the FSA under its Disclosure and Transparency Rules.

Richard Fleck, Chairman of the APB and a director of the FRC said,

“The FRC issued new fuller guidance for directors on going concern earlier this year in response to the credit crisis. This new guidance for auditors clarifies their responsibilities in reviewing whether the directors’ statements on going concern in their Annual Reports are consistent with the FRC guidance for directors.”

The guidance is set out in Bulletin 2009/4 which may be downloaded from the Publications (Bulletins) section of this website. Printed copies at a cost of £6.50, are available from: FRC Publications, 145 London Road, Kingston upon Thames, Surrey, KT2 6SR. Telephone: 020 8247 1264. E-mail: customer.services@cch.co.uk. Website: http://www.frcpublications.com/. 
 

1. The Financial Reporting Council (FRC), 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 FRC Board. The Committee on Corporate Governance assists the Board in its work 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. The APB issues Bulletins to provide auditors with timely guidance on new and emerging issues. They are indicative of good practice and persuasive rather than prescriptive.
4. On 1 December 2009, the FRC launched a consultation on proposals to reform the UK’s Corporate Governance Code (formerly the Combined Code). When the outcome of this consultation and the impact on the auditor’s responsibilities is known the APB will decide whether to revise its guidance set out in Bulletin 2006/5.
5. All press enquiries should be directed to: Jon Grant on 020 7492 2410.