The Financial Reporting Review Panel (FRRP) has published a consultation paper which is aimed at improving the quality and reliability of annual financial statements. The FRRP proposes to review all company accounts which have a qualified audit report (as this is a good indication that the accounts may not comply with statutory requirements). It will then consider these reports with a view to agreeing corrective action with companies (which may involve, if appropriate, correcting the accounts themselves). The FRRP anticipates working on a consensual basis with companies to achieve this.
To assist with this exercise, the FRRP seeks views on whether audit firms could disclose voluntarily to the FRRP any audit report they issue in respect of annual financial statements in which they qualify their audit opinion. The deadline for responses to this consultation is 31 July 2007.