FRC comments on Charity Commission for England and Wales report
News types: Statements
Published: 26 February 2018
Responding to the Charity Commission in England & Wales (CCEW) recently published report, Accounts monitoring: Reporting of matters of material significance by auditors, Melanie McLaren, Executive Director of Audit and Actuarial Regulation commented:
“Auditors of financial statements of charities are required to have an understanding of the legal and regulatory framework applicable to the charity and the sector in which it operates. This includes being familiar with the charity regulators' guidance on reporting matters of material significance and other relevant charity regulators' guidance. Accordingly, the auditor should be able to identify matters that should be reported to a charity regulator.
“The FRC supports The Charity Commission for England and Wales (CCEW) in reminding auditors of their responsibilities to inform it of matters of material significance in order that the CCEW can engage promptly with charities facing difficulties.”
Notes to editors:
1. The Financial Reporting Council’s (FRC) mission is to promote transparency and integrity in business. The FRC sets the UK Corporate Governance and Stewardship Codes and UK standards for accounting and actuarial work; monitors and takes action to promote the quality of corporate reporting; and operates independent enforcement arrangements for accountants and actuaries. As the competent authority for audit in the UK the FRC sets auditing and ethical standards and monitors and enforces audit quality.
2. The FRC reminds auditors of charities that they are required to carry out their audit in compliance not only with the FRC's ethical and auditing standards, but also applicable legal and regulatory requirement.
3. All Press enquiries should be directed to:
- Peter Timberlake, Head of Communications, on telephone: 020 7492 2397/ 07768 502332, or email: [email protected].
- Rita Carolan, Communications Manager, on telephone: 020 7492 2307/ 07428 149096 or email: [email protected].
- Alana Sinnen, Communications Manager, on telephone: 020 7492 2395/ 07949 005526 or email: [email protected]