Statutory Auditors Transparency Reporting
The FRC has implemented the legal requirements on the auditors of certain public interest entities to publish annual Transparency Reports, in accordance with the Statutory Audit Directive. The requirement came into force for financial years ending on or after 31 March 2010.
The FRC carries out ongoing monitoring to ensure that all relevant firms publish a report and that published reports comply with the statutory requirements. We report on the adequacy of transparency reporting in our annual reports to the Secretary of State. From time to time we also publish more detailed reports on the content of transparency reports.
Transparency reports which comply with the new rules mandated by EU Regulation 537/2014 will apply to financial years commencing on or after 17 June 2016. Any transparency reports corresponding to financial years which commenced prior to this date can be published in accordance with the requirements of the 2006 Audit Directive.
Statutory Auditors Transparency Reporting Project
The Statutory Audit Directive introduced a mandatory requirement for annual transparency reporting by auditors of UK companies with securities admitted to trading on a UK regulated market. The Statutory Auditors (Transparency) Instrument 2008 (PDF) gives effect to this.
In 2014 the FRC reviewed the quality of the transparency reports produced by the auditors of public interest entities to meet the statutory requirements. This is the third such report produced by the FRC having published reviews in 2008 (when the reports were produced on a voluntary basis) and 2009/10, the first year of mandatory reporting.