Author: Nicola Sharp
9 January 2023
2 min read
Nicola Sharp of Rahman Ravelli details the Financial Reporting Council’s priorities for the next financial year
The Financial Reporting Council (FRC) has announced its areas of supervisory focus for the 2023-24 financial year.
The FRC’s Supervision Division will supplement its routine reviews of corporate reporting and audits with thematic reviews. These will identify scope for improvement and highlight examples of better practice. The FRC intends to carry out this work over the year, with the findings being released in a number of forms.
The FRC’s Audit Quality Review team will pay particular attention in its audit quality inspections to areas including going concern, fraud risks, climate-related risks, and risk identification and assessment. It will also prioritise sectors that are under particular pressure when selecting corporate reports and audits for review.
The thematic reviews to be carried out by the Corporate Reporting Review team will relate to:
In selecting both corporate reports and audits for review, the FRC will give priority to the following sectors:
Travel, hospitality and leisure
Retail and personal goods
Construction and materials
The FRC considers these sectors to be higher risk for corporate reporting and audit, due to economic or other pressures.
In a statement, the FRC said: “Given the difficult economic conditions that are currently being experienced, we recognise that many companies, in many different sectors, are currently under particular commercial and financial pressure.
“We will therefore be especially careful over the coming year in monitoring where these pressures are being felt most acutely, and tailor our selection of company reports for review and audits for inspection accordingly.”
Nicola is known for her fraud, civil recovery, arbitration and business crime expertise, her experience of leading the largest financial disputes and multinational investigations and her skills in devising preventative measures and conducting internal investigations for corporates.