Corporate Reporting Review

Corporate Reporting Review (CRR) undertakes the day-to-day work relating to the FRC’s statutory responsibility to monitor and improve the quality of corporate reporting in the UK. Its remit covers the annual report and accounts and interim reports of companies included on the FCA’s Official List, the annual reports and accounts of UK-incorporated public companies and large private companies, and the members report and accounts of Limited Liability Partnerships.

Corporate Reporting Review (overview)

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.

Selection and review

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.

Communicating and interacting with CRR

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.

Publicity, confidentiality and penalties

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 Operating Procedures for Corporate Reporting Review

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.

Scope and limitations of a CRR review

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.

CRR Case Summaries and Entity-specific Press Notices

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’).

Annual Activity Reports

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.

Corporate Reporting Thematic Reviews and Generic Press Notices

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.