23 October 2017

FRC: Auditors and preliminary announcements

Overall, feedback suggests that stakeholders are broadly content with current arrangements and the FRC will therefore make only minor amendments to the guidance for auditors, which will be published by the end of November. This includes updating the material to take account of developments in the Listing Rules, corporate governance and reporting and the use of alternative performance measures.

As a result the FRC is proposing only minor changes to its current auditor guidance, and will consult with the FCA/Listing Authority on specific matters where these are within their scope as the regulator:

- the FRC is not proposingto convert the current guidance into an engagement standard;

- the FRC does not propose to require auditors to have completed the statutory financial statement audit and sign the auditor’s report before agreeing to the publication of preliminary announcements – although the FRC will continue to highlight the fact that this is best practice and consistent with most current market practice;

- the FRCwill include a draft report in the revised bulletinsetting out the status of the financial statement audit, and the procedures performed by the auditor on the preliminary announcement to be prepared and published on a voluntary basis; and

- the FRCwill coordinate with colleagues in its Corporate Reporting Teamas they conclude their work on the format and structure of preliminary announcements in combination with the UK Listing Authority. 

Full press release

Full feedback statement

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