The Auditor’s Association with Preliminary Announcements made in accordance with UK Listing Rules
15 December 2017
The Financial Reporting Council (FRC) is today publishing revised guidance for auditors when agreeing to the publication of preliminary announcements
The majority of premium listed companies in the UK base their preliminary announcements on audited information, but the guidance also deals with situations where the auditor is asked to agree to the publication of an ‘unaudited’ prelim.
The revisions to the guidance are consistent with the feedback we received from stakeholders following a consultation earlier in the year, and reflect the overriding view that current arrangements for preliminary announcements are largely effective for market participants.
The material has been updated to reflect the need for all price sensitive communications to be ‘fair, balanced and understandable’.
The Bulletin includes the most up-to-date guidance on the use of alternative performance measures, and a new voluntary report by the auditor setting out the status of the financial statement audit and the procedures carried out by the auditor to agree to publication.
The purpose of this new report is to provide investors with greater transparency about the status of the information included within preliminary announcements.