FRC Guidance on Audit Committees

The FRC Guidance on Audit Committees (formerly known as the Smith Guidance) was first published in 2003 and updated in 2008. It is intended to assist company boards when implementing the sections of the UK Corporate Goverance Code dealing with audit committees and to assist directors serving on audit committees in carrying out their role.

  Guidance on Audit Committees (October 2008) (222kb)

Printed copies of the guidance can be obtained free of charge from FRC publications, tel: 020 8247 1264 or email: customer.services@cch.co.uk

In July 2010 the FRC began consultation on limited changes to the guidance to provide advice to audit committees on determining whether a company’s auditor should be permitted to provide particular non-audit services. This consultation is being carried out in parallel with a consultation on revisions to the Auditing Practices Board’s Ethical Standards for Auditors, and both follow a review of the provision of non-audit services by auditors to audit clients.

 Consultation Document: Revisions to FRC Guidance on Audit Committees: Non-Audit Services (158kb)

The consultation document on revisions to the Ethical Standards for Auditors can be found at: http://www.frc.org.uk/apb/publications/pub2324.html

Responses are requested by 23 October 2010 and should be sent by e-mail to: corporategovernance@frc.org.uk  

or in writing to:

Chris Hodge
Head of Corporate Governance
Financial Reporting Council
Fifth Floor, Aldwych House
71-91 Aldwych
London WC2B 4HN

2008 Revisions to the Guidance
The previous amendments to the guidance were made in 2008. Consultation on draft amendments to the guidance was carried out between March and June 2008. The consultation document, Aa summary of the main points raised by respondents, and a regulatory impact assessment, are available below. Copies of individual responses can be found here.

 Consultation Document: Revisions to FRC Guidance on Audit Committees: Non-Audit Services (158kb)

 Revisions to Audit Committee Guidance - Summary of Responses (152kb)

 Revisions to Audit Committee Guidance - Regulatory Impact Assessment (91kb)