FRC Guidance on Audit Committees

The FRC Guidance on Audit Committees (formerly known as the Smith Guidance) was first published in 2003 and most recently updated in December 2010. It is intended to assist company boards when implementing the sections of the UK Corporate Governance Code dealing with audit committees and to assist directors serving on audit committees in carrying out their role. Companies are encouraged to use the 2010 edition of the guidance with effect from 30 April 2011.

 Guidance on Audit Committees (December 2010)

  Guidance on Audit Committees (October 2008)

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. The changes made in December 2010 provide advice to audit committees on determining whether a company’s auditor should be permitted to provide particular non-audit services, including internal audit functions.

These changes followed a consultation 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. The revised standards take effect on 30 April 2011.

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

Click here to view the responses received to the consultation exercise. The document below contains a summary of the main points raised by respondents, and how these were addressed by the FRC.

 Summary of Responses to 2010 consultation

The revised Ethical Standards for Auditors can be found at: http://www.frc.org.uk/apb/publications/ethical.cfm