The FRC’s operating procedures for reviewing corporate reporting (the “operating procedures”) have been updated with effect from 6 May 2021. They set out the procedures adopted by the FRC for its corporate reporting review work and are based on the operating procedures of the previously authorised bodies, the FRC’s Conduct Committee and the Financial Reporting Review Panel. The procedures were considered by the relevant Secretary of State prior to the making of the authorisation order for the purposes of s455 Companies Act 2006 (SI 2012/1439 and as amended by SI 2021/465).
Under this order the FRC is empowered to apply to the court under s456 Companies Act 2006 for a declaration or declarator that the annual accounts of a company do not comply with the requirements of that Act and for an order requiring the directors of the company to prepare revised accounts.
The Operating Procedures provide that the FRC will deal with the accounts of public and large private companies. The companies concerned are public limited companies (PLCs) (except PLCs that are subsidiaries in a small or medium-sized group), companies within a group headed by a PLC, and any company not qualifying as small or medium-sized as defined by s382 Companies Act 2006 or any company within a group which does not qualify as small or medium-sized as defined by s466 of that Act.
A previous version of the operating procedures is available here