We review the annual report and accounts of public and large private companies, and certain other entities, for compliance with the law and other relevant reporting requirements. Our activities also cover the interim reports of some listed companies.
We select reports and accounts and interim reports to review using a combination of risk-based and rotational review approaches. We then consider if there is, or may be, a question whether they comply with the law or other relevant reporting requirements.
The majority of our interactions with companies are conducted through formal letters. However, in some circumstances it may be more appropriate and efficient to have face-to-face meetings with company representatives.
Certain aspects of CRR’s interaction with companies may be made public; however, access to and disclosure of case details is strictly controlled. The FRC has no power to impose penalties on a company.
The FRC’s formal powers relating to corporate reporting review are derived from the Companies Act 2006 and other relevant law. The Operating Procedures set out how the processes through which these powers are exercised.
A review conducted by CRR does not provide any level of assurance on which reliance can be placed by a company, its directors or any other third party. This includes, but is not limited to, a company’s shareholders and potential investors.
The FRC publishes, on a quarterly basis, summaries of its findings from recently closed reviews that resulted in a substantive question to a company (‘Case Summaries’).
Each year the FRC publishes an Annual Review of Corporate Reporting, which describes the activity and findings of its Corporate Reporting Review function for the 12-months to 31 March.
Over the course of a year, we undertake a number of thematic reviews of certain aspects of companies’ corporate reports. In addition, from time to time, we may issue a generic press notice on a specific aspect of corporate reporting.